How do I sell my small business UK?
Your step-by-step guide to selling a UK business
- Step 1 – Set your objectives and expectations. …
- Step 2 – Prepare the business for a sale. …
- Step 3 – Research the tax you’ll need to pay. …
- Step 4 – Time the sale. …
- Step 5 – Get a business valuation. …
- Step 6 – Create a sale brochure. …
- Step 7 – Prepare for due diligence.
How can I sell my business fast?
How to Sell a Business Fast: 7 Steps for Selling Your Business Quickly
- Review of Accounting Records. …
- Business Operations Documented. …
- Have a Marketing Plan. …
- Hire a Business Broker. …
- Plan to Target Buyer Prospects. …
- Plan for Due Diligence. …
- Collaborate for Successful Transition.
How long does it take to sell a business UK?
Small business owners can sometimes exhibit a sense of urgency to close a deal once deciding to sell, but the average length it takes to sell a business is usually quoted by UK business brokers as taking around 9 months.
How much does it cost to sell a business UK?
Generally speaking, business broker fees in the UK are anything from 1% to 10% of the business value, and fees grow smaller the bigger the business for sale is.
Can I sell my business myself?
Yes, you can! Just as many homeowners manage to sell their homes without a realtor, business owners have managed to sell their business without a business broker. Usually, business owners who sell their business in a private sale are only successful if they already have an interested buyer.
How much tax do you pay when you sell a business UK?
In the sale of a company, your tax obligations will depend on whether the sale is an asset sale or a share sale. For a share sale, you will only pay capital gains tax on the profits from the sale of the shares. For basic rate taxpayers the rate is 10%, while for higher-rate tax payers it is 20%.
How do I sell my business privately?
How to Sell a Small Business in 7 Steps
- Determine the value of your company. …
- Clean up your small business financials. …
- Prepare your exit strategy in advance. …
- Boost your sales. …
- Find a business broker. …
- Pre-qualify your buyers. …
- Get business contracts in order.
How fast can you sell a business?
Although the average time to sell a business is 6 to 9 months, there are steps that buyers, sellers, and business owners can take to speed up the process. If you are selling your business, and the time it will take to sell it matters to you, consider the factors in this blog when choosing a business broker.
How do I liquidate my small business?
File for bankruptcy or liquidate
- Prepare an inventory and determine assets for sale.
- Secure your merchandise.
- Set liquidation value of assets with a qualified appraiser.
- Use that value to estimate net sale proceeds and re-evaluate your decision.
- Choose sale type: negotiated, consignment, internet, sealed bid, or retail.
What paperwork do I need to sell my business?
Legal Documents Needed to Sell a Business
- Non-Disclosure Confidentiality Agreement.
- Personal Financial Statement Form for Buyer to Complete.
- Offer-to-Purchase Agreement.
- Note of Seller Financing.
- Financial Statements for Current and Past Two to Three Years.
- Statement of Seller’s Discretionary Earnings and Cash Flow.
How much is my business worth UK?
To find your company value, simply multiply your P/E ratio by your post-tax profits for the year. The formula for P/E valuation is simply: profit x P/E ratio = valuation.
How many times earnings is a business worth?
nationally the average business sells for around 0.6 times its annual revenue. But many other factors come into play. For example, a buyer might pay three or four times earnings if a business has market leadership and strong management.
Do I need a solicitor to sell my business?
You do not have to use a solicitor to sell a business, however, it is highly recommended that you use one. Selling a business is a highly complex process and a solicitor will help you prepare the business for sale by: Ensuring all contracts with customers, suppliers and employees are up to date.
Is it worth selling my business?
Never let it go for less than it’s worth, but don’t start out with the expectation that it will sell for more. Businesses are usually valued at a multiple of their revenue, so a good rule of thumb is to sell your business for two or three times its annual profit.
How much do brokers charge to sell your business?
Typically, the commission will be anywhere from 8-12% of the total sales price paid at closing. The range of the percentage depends mostly on the business size and its complexity.