Thinking of selling your business? Get these things in order first
Most owners only start thinking seriously about a sale once they've already decided to sell — by which point it's often too late to fix the things that would have made the biggest difference to price. Whether an exit is six months away or still just an idea, the businesses that sell well — trades businesses especially — are usually the ones where the groundwork was laid quietly, well before anyone outside the business knew a sale was being considered. Here's where to start.
1. Get three years of clean financials together
Buyers, and their accountants, will pick your numbers apart before they trust your asking price. Management accounts that reconcile properly, profit normalised for one-off costs and owner perks (the van that isn't really a business expense, family on payroll who don't work in the business), and a clear trail from invoice to bank statement all build credibility before a single negotiation happens. For trade businesses specifically, separating project-based revenue from recurring contract work makes the underlying quality of the business far easier for a buyer to see.
2. Put your contracts and paperwork on a proper footing
Verbal agreements and "we've worked together for years" arrangements don't survive due diligence. Customer contracts, supplier terms, leases, and employment agreements should all be written, signed, and easy to find — not scattered across email threads, or worse, existing only as an understanding between you and a long-standing client. If a buyer can't verify a relationship in writing, they'll assume it disappears the day you leave.
3. Reduce how much the business needs you, specifically
This is the slowest item on this list to fix, and the one with the biggest impact on price. If quoting, client relationships, or technical decisions all run through you personally, start building a layer underneath — a site manager who can quote a job, a long-serving tradesperson who can sign off on quality, whoever it takes to prove the business survives your absence. Buyers price this risk in heavily, and twelve months of visible delegation is worth more than any amount of explaining it away in a meeting.
4. Line up your advisors before you need them
An accountant who understands deal structuring, a solicitor experienced in business sales rather than general commercial law, and ideally a corporate finance advisor who can run a proper process — these relationships are far easier to build calmly in advance than to scramble together once an offer is already on the table. Going into a negotiation without the right advisors in place is one of the most common ways sellers leave money behind.
5. Decide your walk-away number, and your reason for selling
Know the minimum price you'd genuinely accept, and be honest with yourself about why you're selling — retirement, burnout, a new venture, ill health. Both shape how you negotiate. A seller with a clear floor and a clear reason holds their ground; a seller who hasn't worked this out yet is far easier to push around on price or terms once talks get serious.
If this feels like a long list, that's normal — most owners are partway through it by the time they start thinking seriously about a sale. BUK Capital is happy to talk through where you currently stand, confidentially and without obligation.
