Selling a business is a significant decision. Knowing what the process involves helps owners prepare and make the right choice.
A holding company buys a business to keep it, not to merge it out of existence or sell it on quickly. That changes what an owner can expect from the process and from life after completion.
A confidential start
Most conversations begin informally. Once both sides see a potential fit, a mutual non-disclosure agreement protects the information that follows. Owners should expect to share three years of accounts, current trading figures and an honest view of the main risks.
Clear terms early
Outline terms are usually agreed in heads of terms before detailed due diligence begins. This avoids months of work on a deal that was never going to agree on value or structure.
Due diligence
Financial, legal and commercial checks confirm what has been discussed. The aim is not to find reasons to walk away but to understand the business well enough to support it properly after completion.
After completion
The first 100 days focus on settling in: reporting, governance and a small number of agreed improvements. The business keeps its identity. The owner, if staying on, continues to lead it with the Group’s support behind them.
Questions worth asking any buyer
What will change in the first year? Who will I report to? How are decisions made? How do you support management? What happens to my team? A good buyer will answer each one clearly.
This article is general information, not financial, legal or tax advice.