Selling your business: frequently asked questions
When is the right time to start planning my exit?
Earlier than most owners think. We recommend formal exit planning 18–24 months before your intended transaction. That window gives you time to address owner-dependency, strengthen the management team, improve recurring revenue ratios, and build the evidence base for a premium valuation. Even if a sale is 3–5 years away, an early conversation costs nothing and typically adds significant value.
How is my business valuation determined?
UK mid-market valuations vary by sector, scale, growth trajectory, and risk profile. We triangulate EBITDA multiples, comparable transactions, and discounted cash flow analysis. Our Integrated Intelligence platform combines AI-driven market data with real comparable deals to build a defensible valuation range — not an optimistic estimate.
What is the difference between a strategic buyer and private equity?
Strategic (trade) buyers typically pay for synergies — cost savings and revenue uplifts — and often require full integration. Private equity buyers invest in growth potential and management capability, often with earn-out structures that reward future performance. With PE now active at the sub-£50m end of the market, choosing the right buyer type is a critical early decision that shapes both your outcome and your legacy.
How long does the M&A process typically take?
For a well-prepared business, a typical UK mid-market sale takes 6–9 months from formal launch to completion. Including preparation, a realistic total timeline from initial engagement to funds in the bank is around 12 months. Owners who begin preparation with CapEQ before launching a formal process consistently achieve faster timelines and stronger outcomes.
What does "partner-led" actually mean in practice?
Every CapEQ engagement is led personally by a Partner — not handed to junior associates after the pitch. Your Partner has 15+ years of M&A experience and, critically, has been a business owner themselves. You'll have direct Partner access throughout the entire journey, from onboarding to closing.
How do changes to tax relief rates affect my exit timing?
Movements in Capital Gains Tax, Business Asset Disposal Relief, or other entrepreneur-specific incentives directly affect your post-tax proceeds. Even a marginal rate change on a high-value sale can mean a material tax liability. We model net-to-bank scenarios with your tax advisors and, where appropriate, recommend keeping your business "sale-ready" so you can act inside favourable tax windows.
How do you keep a business sale confidential?
Confidentiality is engineered into every stage. We use a coded project name, blind teasers that disguise identifying details, and tiered NDAs before any data is released. Detailed information lives in a controlled Virtual Data Room, with access permissions calibrated to each round of the process. Our team has run sales for owners whose staff, customers, and competitors only learned of the deal at announcement.
What costs are involved in selling my business?
Sell-side fees typically combine a modest retainer with a success fee on completion, often structured as a "ratchet" that rewards us for achieving above-target value. You'll also incur legal fees, tax advisory fees, and (where appropriate) vendor due diligence costs. Most of these are payable by the company and are tax-deductible — we'll model the total cost-of-sale alongside your net-to-bank position before you commit.
How do I know if my business will attract serious buyers?
The strongest signals are recurring revenue, customer concentration below 25%, a management team that operates without the founder, audited financials with three clean years, and a defensible market position. We run a free Sale Readiness Review against these criteria and identify the two or three changes most likely to move your valuation before going to market.
I've received an unsolicited offer to buy my business — what should I do?
Don't say yes, don't say no, and don't sign anything — particularly an exclusivity agreement. Acknowledge the approach, ask for the offer in writing, and buy yourself two to four weeks to take advice. An unsolicited bid is rarely the best price you can achieve; introducing competitive tension typically lifts the final number by 20–40%. We can run a discreet review and respond on your behalf if you'd prefer not to engage directly.
What is an earn-out, and should I accept one?
An earn-out is deferred consideration paid only if the business hits agreed performance targets after completion — typically over one to three years. It can bridge a valuation gap with the buyer, but it also means you carry post-deal performance risk. We negotiate earn-outs so the targets are realistic, the metrics are measurable, and you retain enough operational control to actually deliver them. For some owners we recommend rejecting earn-outs entirely in favour of a lower headline price paid in full at completion.
What happens to my employees when I sell the business?
Most acquirers value the team as a core part of what they're buying — particularly in service businesses. Employment contracts transfer under TUPE in a share sale, and we negotiate undertakings on retention, redundancy, and key-employee incentive plans before exchange. Protecting your team and their conditions is one of the legacy points we treat as non-negotiable on your behalf.
