However, once the final decision is made, prior preparation, as well as appointing a corporate finance adviser at the right stage, will help to ensure clarity and focus from the outset. This means you will be more likely to find a suitable buyer, as well as aiding due diligence and managing expectations on both sides.

Here are some key elements to consider when preparing your business for sale.

1. Review your financial records

Clear, updated financial records are essential for a smooth business sale. Make comprehensive records of year-on-year performance and any significant financial events. If possible, you could also prepare forecasts and track actual performance against budgets.

You should also ensure your profit and loss statements, balance sheets, and cashflow statements are current and accurate, as well as making sure all tax filings are up-to-date and any issues resolved.

Ideally, prepare monthly management accounts to cover at least a period of 24 months so that trends can be identified, and keep a record of any historical exceptional costs.

2. Optimise business performance

Well-documented processes will reassure potential buyers that the business can run efficiently post-sale.

Start by creating detailed manuals for relevant business processes, then assess your workforce. Do you have the right mix of talent in place? What changes might improve productivity? Could key employees be persuaded to remain with the business once the sale completes?

If relevant, ensure all products are accounted for and in good condition, and implement inventory control systems if these are not already in place.

3. Perform legal housekeeping

Potential buyers will want to know that the business is free from legal issues, so take time to identify and resolve any outstanding liabilities. Ensure trademarks, patents, and copyrights are registered and enforceable.

Review your business contracts and agreements – such as leases, vendor agreements, and employment contracts – to confirm that they are both updated and legally binding.

4. Enhance marketability

A strong online presence can enhance business credibility and attract interest from potential buyers. Update your website and social media channels, and consider refreshing your marketing materials in line with any recent changes.

A loyal customer base will add significant value to the business, so you could think about implementing customer satisfaction surveys to showcase positive feedback.

5. Be due-diligence-ready

Due diligence is a comprehensive appraisal of a business conducted by a prospective buyer.

Organisation and transparency help build trust, so create a due diligence folder to house all the essential paperwork, including financial records, legal documents, and operational manuals. Be prepared to answer detailed questions about your business.

6. Engage trusted professional advisers

Selling your business will involve a number of complexities that will be made easier with support from an accomplished corporate finance adviser.

Our specialist team at Rickard Luckin can guide you through the entire selling process, as well as sourcing potential buyers, negotiating the sale, and offering experience-based insights into profitable business pricing and tax implications.

Our trusted network of professional advisers means we can also help you appoint other experts as needed, including a corporate solicitor to handle the legal aspects of the sale.