When selling a business, owners may overlook issues such as tax, records, succession, confidentiality and payment terms. Identify these gaps before approaching buyers and assign legal, accounting, tax and commercial questions to suitably experienced professionals rather than relying on one adviser for everything.
By Tony Vaughan · Published · Last reviewed
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The quote “You don’t know what you don’t know” reflects the reality that, when faced with a complex task like selling a business, entrepreneurs may not be aware of all the factors and considerations that could impact the process. This lack of knowledge can lead to oversights, missed opportunities, and regrets.
Selling and exiting a business involves commercial, legal, financial and personal decisions. Learning about the process and obtaining relevant advice can reduce avoidable mistakes, but cannot guarantee a smooth or successful sale.
Commonly overlooked exit-planning questions
The following are illustrative planning concerns, not verified client quotations or evidence of how commonly owners experience regret:
- “I wish I had started planning my exit strategy sooner.”
- “If only I had taken the time to properly value my business.”
- “Why didn’t I think about the tax implications before selling?”
- “I should have spent more time grooming a successor.”
- “I did not realise how important it was to maintain confidentiality during the sale process.”
- “If only I had been more diligent in preparing my financial records and contracts.”
- “I wish I had sought professional advice before making decisions about the sale.”
- “I didn’t anticipate the emotional impact of leaving my business behind.”
- “Why didn’t I consider the importance of finding the right buyer for my business?”
- “I should have been more proactive in negotiating the terms of the sale.”
Match each knowledge gap to the right adviser
Assign questions to the right specialists: a solicitor for legal terms, an accountant or tax adviser for financial and tax issues, and a broker or exit adviser for commercial sale support. Review what an exit adviser can help with and how to choose a business broker when defining the support you need.
Before an initial adviser discussion, prepare a list of objectives, uncertainties and available records. Confirm whether the conversation is chargeable, what confidentiality arrangements apply and whether it creates any obligation.
Take time to compare advice, scope and costs before signing an engagement or disclosing sensitive information.
Common questions
Which knowledge gaps should I check before approaching buyers?
Review the evidence behind your valuation, financial records, key contracts, tax position, succession plans and confidentiality arrangements. Record unresolved questions and assign each to an appropriate professional.
How do I turn exit-planning uncertainties into an action list?
Write down the decision, information needed, responsible person and next step for each issue. Separate matters that could block a sale from longer-term improvements.
Who should explain the tax implications of my proposed exit?
Use a suitably qualified tax adviser or accountant to assess your circumstances and proposed transaction. Do this before committing to terms rather than assuming a broker’s estimate covers your position.
Why should emotional readiness be part of exit planning?
Leaving can change your identity, routine and responsibilities. Consider your future role, desired handover and post-sale plans alongside financial objectives, and discuss expectations with those affected.
Sources
General information from our archive, not personal advice.
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