FAQs
How long will it take to sell my business?
This usually depends on the size of the business, as well any unique circumstances that might be applicable. In business sales, patience is a virtue. A smooth sale can happen within six months, although it is best to expect a longer timeframe due to any unforeseen complications or prolonged negotiations that might occur. Ensuring your deal is maximised and executed efficiently, as well as finding the ‘best fit’ buyer, should be prioritised. Allowing more time for completion may also result in a better deal.
What do I need to prepare to sell my business?
To gain a deeper understanding of your business, every party involved will wish to study your company’s financial foundations, particularly potential buyers. Getting your finances in order will speed up the process and attract a better quality of buyers.
How is a valuation placed on my business?
Analysing your finances and comparing your business with similar acquisitions will set a foundation for a valuation, but the value of a company comes down simply to how much a buyer is prepared to pay for it. An experienced adviser will account for potential circumstances that can fluctuate the valuation and help to maximise it. Speak to a Knightsbridge expert to get this process started.
How much does it cost to sell a business?
Marketing your business and securing a sale are the main costs to consider, and it is dependable on the size of your business and many other circumstances. At Knightsbridge, we can provide in-house legal fees which are contingent – meaning you will only pay a pre-agreed fee upon the completion of a successful sale. Our fees are transparent and clearly set out at the beginning of the process. Make an enquiry to gain a better understanding of what costs to expect.
How much of the fee paid for my business will I get to keep?
An agreed percentage will be also paid to the company sales adviser you choose.
If you make a profit from selling your business, you must pay Capital Gains Tax (CGT) on anything over your tax-free allowance. Business Asset Disposal Relief means business sellers will be charged CGT at 10% on the first £1m of profit until April 2025, when the rate will rise to 14%, and 18% from April 2026. For any gains outside of the BADR limit, the CGT rate is 24%.
It is therefore beneficial to act as soon as possible, provided market conditions are favourable for your company and the sector it operates in.
Do I need legal representation when selling my business?
Yes. This is also applicable if you source the buyer yourself or sell to a friend or relative having agreed everything in principle beforehand. A solicitor will ensure everything is prepared efficiently, in writing and that legal protocols are executed correctly.
At Knightsbridge, we provide in-house legal fees which are contingent – meaning you will only pay a pre-agreed fee upon the completion of a successful sale.
Can I sell a percentage of my shares?
Yes. You can set out from the beginning a desire to maintain involvement and control in the company. Our expert advisers can source and manage buyers willing to provide alternative deal structures and will advise you along the way of what to realistically expect and negotiate for.
Can I still sell my business if it is in debt?
Yes. Disclosing any debt from the outset will allow your adviser to source appropriate buyers with whom this can be factored into negotiations.
How much tax can I expect to pay?
If you make a profit from selling your business, you must pay Capital Gains Tax (CGT) on anything over your tax-free allowance. Business Asset Disposal Relief means business sellers will be charged CGT at 10% on the first £1m of profit until April 2025, when the rate will rise to 14%, and 18% from April 2026. For any gains outside of the BADR limit, the CGT rate is 24%.
For other tax considerations, K3 Tax Advisory, our sister company, has a team of specialist advisers who know how to mitigate any implications that will arise during the sale of your business.
Topics Covered
How long will it take to sell my business?
This usually depends on the size of the business, as well any unique circumstances that might be applicable. In business sales, patience is a virtue. A smooth sale can happen within six months, although it is best to expect a longer timeframe due to any unforeseen complications or prolonged negotiations that might occur. Ensuring your deal is maximised and executed efficiently, as well as finding the ‘best fit’ buyer, should be prioritised. Allowing more time for completion may also result in a better deal.
What do I need to prepare to sell my business?
To gain a deeper understanding of your business, every party involved will wish to study your company’s financial foundations, particularly potential buyers. Getting your finances in order will speed up the process and attract a better quality of buyers.
How is a valuation placed on my business?
Analysing your finances and comparing your business with similar acquisitions will set a foundation for a valuation, but the value of a company comes down simply to how much a buyer is prepared to pay for it. An experienced adviser will account for potential circumstances that can fluctuate the valuation and help to maximise it. Speak to a Knightsbridge expert to get this process started.
How much does it cost to sell a business?
Marketing your business and securing a sale are the main costs to consider, and it is dependable on the size of your business and many other circumstances. At Knightsbridge, we can provide in-house legal fees which are contingent – meaning you will only pay a pre-agreed fee upon the completion of a successful sale. Our fees are transparent and clearly set out at the beginning of the process. Make an enquiry to gain a better understanding of what costs to expect.
How much of the fee paid for my business will I get to keep?
An agreed percentage will be also paid to the company sales adviser you choose.
If you make a profit from selling your business, you must pay Capital Gains Tax (CGT) on anything over your tax-free allowance. Business Asset Disposal Relief means business sellers will be charged CGT at 10% on the first £1m of profit until April 2025, when the rate will rise to 14%, and 18% from April 2026. For any gains outside of the BADR limit, the CGT rate is 24%.
It is therefore beneficial to act as soon as possible, provided market conditions are favourable for your company and the sector it operates in.
Do I need legal representation when selling my business?
Yes. This is also applicable if you source the buyer yourself or sell to a friend or relative having agreed everything in principle beforehand. A solicitor will ensure everything is prepared efficiently, in writing and that legal protocols are executed correctly.
At Knightsbridge, we provide in-house legal fees which are contingent – meaning you will only pay a pre-agreed fee upon the completion of a successful sale.
Can I sell a percentage of my shares?
Yes. You can set out from the beginning a desire to maintain involvement and control in the company. Our expert advisers can source and manage buyers willing to provide alternative deal structures and will advise you along the way of what to realistically expect and negotiate for.
Can I still sell my business if it is in debt?
Yes. Disclosing any debt from the outset will allow your adviser to source appropriate buyers with whom this can be factored into negotiations.
How much tax can I expect to pay?
If you make a profit from selling your business, you must pay Capital Gains Tax (CGT) on anything over your tax-free allowance. Business Asset Disposal Relief means business sellers will be charged CGT at 10% on the first £1m of profit until April 2025, when the rate will rise to 14%, and 18% from April 2026. For any gains outside of the BADR limit, the CGT rate is 24%.
For other tax considerations, K3 Tax Advisory, our sister company, has a team of specialist advisers who know how to mitigate any implications that will arise during the sale of your business.