Selling a business.
Know your number before the buyer names theirs, and know what your Monday looks like after completion.
The headline price is not your number.
Tax, fees, deferred payments and the terms of an earn-out decide what you actually bank. On a £5m sale, tax alone can take more than £1m.
We work out the figure your life needs, test every offer against it, and model what you keep with your accountant before heads of terms are signed.
A £5m sale.
You sell for £5m. Your shares cost next to nothing and fees are £100,000, so the gain is £4.9m.
Business Asset Disposal Relief taxes the first £1m at 18%, which is £180,000. The other £3.9m is taxed at 24%, which is £936,000. After tax and fees you keep about £3.78m.
If £1m of the price is deferred, the tax on it can still be due at completion. You could bank about £2.8m on the day, and your plan has to work on that.
The TRUTH about selling a business
Plan the exit. Protect the outcome.
You don't retire from a business, you move into a new life+
Two owners sell for the same price, and only one gets the life they planned. Plan your first Monday without the business as carefully as completion day.
A business is not a retirement plan until it's liquid+
Many owners treat their company as a pension without knowing the figure they need. Value is only real when someone pays for it. Until then, your retirement rests on one concentrated asset.
Know your number before you hear a price+
Work out what the sale must leave you, after tax, before any offer arrives. Owners who skip this turn down good offers, or accept poor terms out of fatigue.
Exit planning is business planning+
What buyers value (systems, recurring revenue, a team that can run things) also makes a business easier to own. Preparing for a sale improves the business today.
You are the risk in the valuation+
If the business can't run without you, a buyer doesn't see an asset. They see a liability. Every decision only you can make is a discount on the price.
The best time to plan an exit is when you don't need one+
Death, illness or a falling-out with partners can force a sale at the wrong time. Shareholder agreements and cross-option insurance keep it on your terms. Planning early doesn't commit you to selling, it keeps your options open.
Your tax bill is set years before the sale+
Who owns the shares, the goodwill and the building decides how the sale is taxed. Changing that takes time, and once you're under offer very little can change.
You don't need to sell everything to exit+
Selling the business and stopping work are two decisions. A partial sale, a phased exit or keeping a stake can each work. The right route depends on what you want next.
Headline price is a vanity metric+
It's not what the buyer pays, it's what you keep after tax, fees, deferred payments and retentions. Judge every offer on the guaranteed money after tax.
An earn-out is a job with a bonus someone else controls+
Deferred payments tie your wealth to decisions you no longer make. Treat them as a possible extra, never as money your plan depends on.
Decide before the money lands+
The weeks after completion are a poor time for big decisions, and promises made then are often regretted. Agree in advance where the money sits and what is paid first, then take your time.
A sale can raise your inheritance tax bill+
Business relief can cover a trading business, but not the cash it turns into. Review your will and estate plan before exchange, not after.
What you'll have at the end.
Your number.
Every offer tested.
The first 90 days.
Life after.
Before, during and after the sale.
Build.
Prepare.
Exit.
Life after.
What clients ask us first.
Something not covered here? Ask us. We will reply within one working day.
From Luke and Anick: The Practice Exit Protocol · The Pharmacy Exit Protocol · The Business Exit Protocol
What do I actually need from the sale?+
A figure that funds the rest of your life, worked out from your plan, not from a multiple of profit.
How much will I keep after tax?+
It depends on structure, reliefs and timing. We model the net proceeds with your accountant before heads of terms are signed.
Should I accept an earn-out?+
Deferred consideration ties your money to the buyer's decisions. We show you what the deal looks like if it is never paid.
What do I do with the money?+
Nothing hasty. We protect it first, then turn a lump sum into income, purpose and options.
Plan the life after the sale as carefully as the sale.
We’ll listen, tell you honestly whether we can help, and what it would cost.