How to Know When It’s Time to Sell Your Business — and How to Do It Right

Selling your business is one of the biggest decisions you’ll ever make — emotionally, financially, and strategically. It’s not just a transaction; it’s the end of one chapter and the beginning of another.

And if you get it right, it can be the most rewarding move of your career.

As Chartered Accountants working closely with UK business owners, we’re often asked: “How do I know when it’s the right time to sell?” The answer isn’t always straightforward, but there are clear signals and smart ways to prepare — particularly if you’re aiming for a trade sale.

Below, we explore the signs it might be time to sell, what’s happening in the UK market, and how to prepare your business for a high-value exit.

Is It Time to Sell? The Key Indicators

Most owners don’t wake up one morning and decide to sell. It’s usually a gradual realisation — the business is performing well, but something’s shifted.

Here are five common signs that you may be ready:

1. You’re no longer excited about scaling
You’ve built something solid, but the energy to double it again just isn’t there. Or perhaps you’ve hit a ceiling in what you can achieve with current resources.

2. You’ve received acquisition interest
If potential buyers have approached you, that’s not just flattering — it’s market validation. It may be time to explore options more seriously.

3. The sector is consolidating
In industries like professional services, tech, logistics, and engineering, there’s strong M&A activity. Being acquired by a strategic buyer can give you a premium if the fit is right.

4. Your personal goals have changed
Perhaps you’re ready for retirement, or to step into a different role, or to take on a new venture. When your ‘why’ changes, the business may need to evolve with it.

5. You’ve de-risked the business
If you’ve systemised operations, built a strong team, and reduced founder reliance, congratulations — your business is likely saleable.

UK Trade Sale Market: What the Numbers Say

In the UK, trade sales remain the most common exit route for SMEs. According to data from Experian and Beauhurst, approximately 49% of private business sales in 2023 were trade sales.

These buyers aren’t just purchasing profits. They’re buying customer bases, teams, technology, and market share — assets that help them grow faster.

Valuations can vary significantly depending on your sector and model. A typical UK business might expect:

4x to 8x EBITDA, depending on recurring revenue, growth profile, and operational efficiency.

In higher-value transactions, particularly in tech or B2B SaaS, multiples can stretch well beyond this range.

How to Prepare Your Business for a Trade Sale

Many business owners wait until an offer lands before they prepare — but by then, you’re on the back foot. Buyers can sense disorder and will adjust their offers accordingly.

Here’s how to get ahead of the process:

1. Clean Up Your Financials
Ensure you have at least three years of robust, accurate, and clearly presented management accounts. These should include:

Profit & loss, balance sheet, and cash flow statements

• Adjusted EBITDA calculations (removing owner-specific or one-off costs)
• Revenue segmentation and margin analysis
• Working capital trends
• Many business owners optimise their finances to reduce tax. That’s understandable — but not ideal when preparing for a sale. Buyers need to see true profitability.

2. Create a Data Room
Prepare documentation well before you go to market. Include:

Contracts with key customers and suppliers

• Employee agreements and organisational charts
• Intellectual property (IP) ownership documents
• Regulatory licenses and compliance records
• Summaries of customer concentration, risk exposure, and key performance indicators
• Buyers expect this information during due diligence. Having it prepared signals professionalism and reduces deal risk.

3. Make Yourself Redundant
If the business can’t operate without you, you don’t have a business — you have a job. Buyers look for operational independence.

Build a senior team. Delegate key client relationships. Automate or document your processes. The more scalable and self-sufficient the operation, the higher the potential valuation.

4. Forecast the Future
A strong, believable forecast can materially improve valuation. Buyers pay for the future, not just the past.

Build a three-year forecast showing revenue growth, cost base changes, and profit progression. Ground your assumptions in real data — market demand, pipeline visibility, or new product launches.

When Should You Start Preparing?

Speak to to us early An experienced advisor can help:

Optimise your tax position

• Prepare accurate accounts and forecasts
• Introduce potential buyers or corporate finance professionals
• Navigate due diligence and legal review
• Final Thought

Selling your business isn’t just a financial transaction. It’s a milestone. With the right preparation, a trade sale can be a powerful, profitable exit — one that rewards you fully for the value you’ve created.

If you're beginning to think about your exit, succession planning, or just want to understand your business’s potential valuation, we’re here to help.

Start the conversation today — confidentially, and with no pressure.