This all depends on what type of sale you go for, either an asset sale or a share sale. In an asset sale, the buyer typically acquires selected business assets such as equipment, stock, intellectual property, customer contracts, and goodwill, while the seller retains ownership of the legal entity. This approach allows both parties to choose exactly what is transferred. In contrast, a share sale involves the buyer purchasing the shares of the company itself, meaning they take ownership of the entire business, including all assets, liabilities, and contracts, within the existing legal structure. Each route has different legal, tax, and commercial implications, which is why expert guidance is crucial in structuring the deal correctly.

9 Things to Consider When Selling a Business

Understanding Working Capital

There’s much more involved to give you the all-important number. The main element that sets you on the right path is using someone who understands your business, inside and out.  A more useful question is what affects the value of the business? Turnover, profit, debt levels, customer base and demand all play an important role during business valuations. But there are also plenty of external factors that are less concrete, such as market conditions and the state of the industry you’re in. In essence, valuing a business takes lots of consideration and there are lots of variables that influence it. A lot of businesses will need a valuation at some point – whether it’s to seek investment, to prepare for a business sale or to even work out how a business will be split if one of the owners decides to part ways. With our legal and corporate finance team, we’re able to assess your business, take a look behind the curtain and dig into the numbers so we can give you a realistic value for your business.

But it’s a valid question that business owners will want to know before they embark on the path of selling or buying a business. In terms of the actual deal itself, it can take anywhere between 6 and 9 months. The length of time it takes varies depending on several factors. The size and complexity of the business, market conditions, the level of interest from potential buyers, and the readiness of both the seller and the buyer. With the right preparation, an eye for the details and a well-structured business plan, business owners can increase the chance of a timely sale. Ultimately though, the time it take is unique to each individual case.

An asset sale allows you to pick and choose what assets you’d like to sell, such as machinery, computer equipment, intellectual property and more. It’s often used as a way to raise funds for a business, but it does often mean giving up full control of the asset in question. It essentially allows you to hand over specific parts of your business without giving away full control of the entity itself. On the other side is a share sale where you can sell as much or as little of your business as you’d like. The thing to keep in mind with share sales is that you may be giving away control of your business, unless you choose shares that have limited voting rights. Asset and share sales both have different tax implications, depending on what your goals are, for sellers it’s usually more tax efficient to sell shares to avoid the potential for double taxation. Check out our blog on the difference between an asset sale and a share sale, which explores the topic, or speak to one of our team if you have any questions about the tax implications.

You can sell your business (or part of your business) to another company looking to expand, a private equity investor, or even to your employees through either a Management Buyout or using an Employee Ownership Trust (EOT). If you’re hunting for a buyer, a good business broker can help you find someone who suits your needs, and they’ll work to get you the best price. If you plan on selling it to your employees, our business solicitors can help draft the documentation and contracts that’ll transfer ownership and ensure you’re set up in a tax-efficient way. Often, selling to employees is a good way to preserve culture, however, depending how you set it up will dictate how and when you get paid out. There are a lot of options for business owners to sell, so it’s best to seek advice and work out what’s best for your situation.

There’s a reason why we keep banging this drum, because understanding the difference between an asset and a share sale is vital for owners who are considering selling. Both have very different tax implications, a share sale (selling your shares in the company) is typically more tax-efficient, you’ll pay Capital Gains Tax, potentially reduced to 10% if you qualify for Business Asset Disposal Relief. In contrast, an asset sale (selling off business assets individually) can trigger double taxation: first, your company pays Corporation Tax on the profit, and then you’re taxed again when extracting the proceeds. For most sellers, a share sale means less tax and a simpler exit — but it does mean the buyer inherits the company’s liabilities. The best approach? Plan ahead and speak to a tax advisor early, get in touch with our team today.

You may have post-sale obligations like warranties, indemnities, or restrictive covenants, all of which can tie you to the business for a set period, so it’s important those terms are watertight and that you understand them. Beyond the legal clean-up, there’s the personal side: what do you do with the proceeds? Whether you’re planning retirement, reinvesting, or starting something new, we help you build a post-sale strategy that makes the most of your exit, from tax-efficient wealth management to structuring your next venture. Selling is just one chapter; we’re here to help you write the next one.

In a share sale, the money usually goes directly to you, minus any tax, making it the cleaner option. In an asset sale, the company receives the funds first, which can trigger Corporation Tax, then you’ll extract the proceeds, possibly facing further Dividend Tax or Capital Gains Tax, depending on how it’s done. Payment might also be staggered, with part paid upfront and the rest tied to performance or time-based earn-outs. We work with you to make sure the deal is structured in a way that maximises your return and minimises tax, and ensures you actually walk away with what you’ve earned.