Your business is your legacy—don’t let it slip away without ensuring the right fit, the right price, and the right future.
How to Respond When Someone Wants to Buy Your Business
For small business owners, receiving an offer to buy your business can be thrilling—and overwhelming. Whether the offer feels like an exciting opportunity or catches you off guard, how you handle that first contact can set the stage for a successful deal. Here’s a clear, strategic guide to navigating the process with confidence, drawn from the principles in my book Deal Finance.
1. Take a Moment to Pause
When approached, don’t rush into negotiations or dismiss the offer outright. Think of it as a friendly invitation to explore possibilities, not a commitment. Use this time to assess the situation calmly. It’s the business equivalent of being asked out for a coffee.
2. Prioritise Confidentiality
Before discussing your business, ask the buyer to sign a non-disclosure agreement (NDA). This protects your sensitive information and ensures you retain control over the process.
3. Research the Buyer
Do your homework. Investigate their financial stability, acquisition history, and reputation using tools like Companies House or credit checks. Knowing who you’re dealing with is essential for informed decision-making.
4. First Meetings Matter
Meet in a neutral location to maintain privacy and evaluate their intentions. Are they genuinely interested in your business? Do they share a compatible vision? Building trust early is key.
5. Focus on Their Intentions
Before diving into financial details, ask insightful questions:
- Why are they interested in your business?
- How does your business fit their goals?
Understanding their motivations helps you assess their suitability as buyers.
6. Get Expert Advice
If the offer seems serious, involve a corporate finance advisor. They’ll help you evaluate the buyer, manage the process, and ensure your business is positioned for success. Avoid going it alone or relying solely on your accountant.
7. Define Your Goals
Be clear about what you want from the deal.
- Are you emotionally and financially ready to sell?
- What’s your ideal timeline for exiting the business?
- What’s most important: the price, the buyer’s vision, or both?
8. Handle Team Communications Wisely
Transparency is important, but timing matters. Share information with your team carefully to avoid unnecessary anxiety or disruption.
Why Strategic Thinking is Essential
Responding to a buyer’s approach is just the beginning. Even if you decide not to sell, the experience can sharpen your goals and future strategy. By taking the right steps early, you’re more likely to secure the best outcome—whether you sell now, later, or not at all.
Contact UK Business Advisors for help navigating corporate transactions.