Selling your business is a huge milestone both emotionally and financially. Whether you’ve run a business in Crawley, elsewhere in West Sussex, or across the UK, exiting on your own terms is something many business owners dream of.

But here’s the reality:

Businesses don’t sell themselves.

And without proper preparation, many sell for far less than they’re worth.

Or, fail to sell at all…

At Curve Accountancy, we’ve helped many small and growing business owners prepare for sale. From local shops and trades to consultancies and online businesses. 

The common thread? 

Those who prepare early, carefully and strategically almost always achieve better outcomes.

This comprehensive guide will show you how to do exactly that.

Why Preparing Early Matters So Much

Preparing your business for sale isn’t something you do 3 months before calling a broker.

The earlier you start (ideally 2–3 years in advance) the more levers you can pull to increase value, reduce buyer risk, and structure a tax-efficient deal.

Benefits of starting early:

• You can optimise profit and cash flow (core to your valuation)
• You can reduce dependence on yourself as the owner
• You can fix any legal, tax or operational weaknesses that might derail a deal
• You can structure your business so you personally take home more after tax
  

Even if you’re on a shorter timescale, much of this advice still applies but the earlier you start, the better your position.

Get Your Financials in Top Shape

Why this matters:

Buyers want to see a clean, transparent, consistent financial history that gives them confidence in your numbers.

What they don’t want:

• Unreconciled accounts
• Suspicious one-off transactions
• Personal expenses mixed in with business
• No clear pattern of profitability
  

Key things to prepare:

Accurate financial statements

Prepare at least 3 years of:

• Profit & Loss statements (aka Income Statements)
• Balance Sheets
• Cash Flow Statements
  

Key financial metrics

You’ll hear a lot of jargon during a business sale process. Here’s what the key metrics mean:
‍

Metric - Revenue

What It Means - Total income generated

Why It Matters - Top-line measure of business size
‍

Metric - Gross Profit Margin

What It Means - Revenue minus direct costs (as % of revenue)

Why It Matters - Shows efficiency of production/service delivery
‍

Metric - EBITDA

What It Means - Earnings before interest, tax, depreciation & amortisation

Why It Matters - Often used as a basis for valuation (shows core profitability)
‍

Metric - Net Profit

What It Means - Final profit after all costs

Why It Matters - Bottom-line profitability
‍

Metric - Recurring Revenue

What It Means - Regular, repeatable income (subscriptions, retainers, etc)

Why It Matters - High value — buyers love predictable income
‍

Metric - Customer Concentration

What It Means - % of revenue from top customers

Why It Matters - Lower is better — if one customer is 50% of sales, buyers get nervous
‍

Forecast future performance

Buyers aren’t just buying your past. They’re buying the future potential.

Prepare financial projections that show:

• Forecast revenue and profit growth
• Seasonality trends
• Major upcoming opportunities
• Any known risks or headwinds
  

Clean up debt & tax issues

Outstanding debt isn’t necessarily bad but it needs to be clear and manageable.

Unpaid tax or unresolved liabilities, on the other hand, are major red flags.

Reduce Owner Dependence

Why this matters:

If your business can’t run without you, buyers will see it as high risk and may discount their offer or walk away.

Signs of owner dependence:

• Only you handle major client relationships
• Key knowledge/processes live in your head
• You’re needed daily to keep things running
• The business brand is heavily tied to your personal identity
  

How to reduce this risk:

• Develop a capable second-in-command or management team
• Document key processes and SOPs (Standard Operating Procedures)
• Systematise sales and marketing so they aren’t reliant on you
• Strengthen the company brand so it’s bigger than the founder
  

Strengthen Your Profitability

Why this matters:

Most businesses are valued based on profit, not just revenue. Buyers pay a multiple of EBITDA or adjusted net profit.

How to increase your valuation:

✅ Increase revenue

• Launch new products/services
• Develop upsells and cross-sells
• Focus on recurring revenue streams
• Expand your customer base and geographic reach
  

✅ Improve gross margins

• Negotiate better supplier terms
• Optimise production or service delivery processes
• Reduce waste and inefficiency
  

✅ Reduce unnecessary costs

• Cut underperforming marketing spend
• Review software subscriptions
• Eliminate non-essential travel/expenses
  

✅ Balance customer concentration

A business that relies too heavily on 1 or 2 key customers is seen as risky. Aim to diversify your client base well before sale.

Build Value Into Intangibles

Why this matters:

Hard numbers drive valuation but intangibles drive buyer enthusiasm and premium offers.

Key intangibles that add value:

📌 Brand and reputation

• Strong local recognition (e.g. well-rated in Crawley and West Sussex)
• Positive online reviews and testimonials
• Awards and PR coverage
  

📌 Customer loyalty

• High repeat purchase rate
• Long-standing contracts
• Net Promoter Score (NPS)
  

📌 Operational systems

• Automated workflows
• Documented training materials
• CRM and marketing automation in place
  

📌 Intellectual property

• Proprietary products, designs, patents or trade secrets
• Unique business methodologies
• Content assets (blog, email list, SEO rankings — yes, your blog matters here!)

Get Legal and Tax Affairs in Order

Why this matters:

Poor preparation here can derail a deal or cost you money.

Legal checklist:

• Are shareholder agreements up to date?
• Do you have signed contracts with employees and key contractors?
• Are all customer and supplier agreements documented and assignable?
• Is your intellectual property clearly owned by the company?
• Are there any outstanding legal disputes?
  

Tax considerations:

• Are you eligible for Business Asset Disposal Relief (formerly Entrepreneurs' Relief)? This can reduce CGT to just 10% on qualifying gains.
• Is your company structure optimised for sale? (If not, changes can take 12–24 months to become effective — start early!)
• Are there any outstanding VAT, PAYE, or corporation tax liabilities?

Understand What Buyers Are Looking For

Not all buyers are the same. Tailoring your preparation to likely buyer types helps you position your business more effectively.
‍

Buyer Type - Competitor / Industry Buyer

Typical Motivation - Market share, synergies

How to Appeal to Them - Highlight efficiencies and cross-sell opportunities
‍

Buyer Type - Private Equity / Investor

Typical Motivation - ROI, scalable growth

How to Appeal to Them - Focus on EBITDA, systems, management team
‍

Buyer Type - Family Member / MBO

Typical Motivation - Continuity, affordability

How to Appeal to Them - Provide flexible deal terms and transitional support
‍

Buyer Type - Lifestyle Buyer

Typical Motivation - Work-life balance, income stream

How to Appeal to Them - Emphasise ease of management, recurring revenue
‍

Knowing your likely buyer profile early helps guide your preparation strategy.

Be Realistic About Valuation

Many owners overestimate their business value.

Remember: buyers pay based on profit, not potential alone.

Typical valuation multiples:

• Owner-dependent small business: 1–3x adjusted net profit
• Scalable, well-systemised business: 3–5x EBITDA
• Highly desirable niche / recurring revenue / strong brand: 5–7x+ EBITDA

Curve can help you benchmark your business against local and industry norms.

What can hurt your valuation:

• Declining revenue/profit trend
• High owner dependence
• Customer concentration risk
• Legal/tax problems
• Unclear systems or data

Build the Right Team Around You

Trying to sell a business on your own is risky and stressful.
Assemble an experienced team:

• Accountant → Financial preparation, valuation, tax planning
• Solicitor → Legal preparation and contract negotiation
• Corporate finance advisor / broker → Finding buyers, deal structure, negotiation
• Wealth planner → Managing proceeds, personal tax optimisation

Final Thoughts

Selling your business is one of the biggest financial events of your life and one of the most complex.

How well you prepare determines whether it’s a proud success or a painful regret.

At Curve Accountancy, we help small and medium business owners across Crawley and West Sussex build toward a successful, high-value exit.

Whether you plan to sell in 3 years or 3 months, the best time to start preparing is today.