Guide for owners

How to sell a business in the UK

Updated November 2026

Selling a business is a process with clear stages. Knowing them in advance makes it calmer, quicker and more likely to end the way you want.

1. Understand how your business is valued

Most established businesses are valued on their sustainable profit, often measured as EBITDA, multiplied by a figure that reflects risk, growth and sector. Buyers also look at cash flow and what is needed to keep the business running.

Things that usually support value:

• Repeat or contracted income
• A good spread of customers, with no single one dominating
• A management team that does not depend on the owner
• Clean, consistent financial records

Things that usually reduce it: one very large customer, an owner who holds every relationship, overdue filings and unclear contracts.

2. Prepare the business

Get three years of accounts in order, put key agreements in writing, and make sure someone other than you can run the business day to day. Preparation is the part of a sale you control most.

3. Keep it confidential

News of a sale can unsettle staff, customers and competitors. Share sensitive information only after a non-disclosure agreement is signed, and decide in advance when and how your team will be told.

4. Find the right buyer

You can sell through a business broker or speak to buyers directly. Either way, judge a buyer on what they plan to do with the business as well as the price they offer.

5. Agree heads of terms

Heads of terms set out the main points of the deal: price, structure, timing and any conditions. They are not usually binding on price, but they set the direction for everything that follows.

6. Due diligence

The buyer checks the finances, contracts, staff, property and any legal matters. Well-organised records make this faster and reduce the risk of late changes to the deal.

7. Share sale or asset sale

In a share sale the buyer takes over the company itself, including its contracts, staff and history. In an asset sale the buyer buys selected assets, and the company stays with you. The two are taxed and documented differently, so take advice from your accountant and solicitor on which suits you.

8. Completion and handover

At completion the legal documents are signed and ownership passes. A good handover then introduces the new owner to staff, customers and suppliers at a sensible pace.

Selling to Harbour One Group

Harbour One Group buys established UK businesses to own for the long term. We keep the team, protect the name and invest in growth. Read our guide to selling your business when you retire, or get in touch below.

What we look for

• UK-based and independently owned
• Roughly £120k to £20m turnover
• Generally £100k or more in annual EBITDA
• An established trading history
• Owners planning succession, retirement or a change of direction

Every business is assessed individually, so if yours sits slightly outside these figures it is still worth a conversation.