Preparing to sell your business: sale readiness review
See your business the way a buyer will, before they do.
A written report for owners planning to sell their company in the next one to two years. The profit a buyer is likely to accept, what they will take off the price, where the business relies on you or a few customers, and what to fix first.
Not a formal valuation. The report includes an indicative value range, labelled as such. I do not find buyers or negotiate: your corporate finance adviser or broker does that. This is the groundwork that makes their job, and the buyer’s due diligence, quicker.
When you need one
- You are thinking of selling or retiring. In one to two years, to a trade buyer, a competitor, your managers or a family member.
- The business relies on you. You win the work, hold the customer relationships or sign everything. Buyers pay less for that.
- The profit needs explaining. Owner’s pay, rent or charges between related companies, one-off costs. A buyer will adjust all of them.
- Before you appoint a broker or adviser. Go in knowing what a buyer will find, and with the obvious problems already fixed.
What's in the report
- How a buyer will see the business: seven tests with green, amber and red lights
- The underlying profit (EBITDA) a buyer is likely to accept, with each adjustment and the evidence it needs
- What a buyer will deduct from the price: debt, debt-like items and cash
- The normal level of working capital a buyer will expect at completion
- An indicative value range from published multiples for similar small company sales, not a formal valuation
- Reliance on customers and key people, the main risks and red flags
- Recommendations in order of value, a 6 to 12 month plan and a data room checklist
- Answers to one follow-up email of questions, and one round of changes
Buying, not selling? I also do limited-scope financial due diligence for buyers, quoted after a short scoping call. Financial due diligence for buying a business →
Don't have all of this? Most owners don't.
You need nothing to get a quote. Once you agree it, send what you have. The first draft is due 5 working days after I have your answers to the brief and your figures.
Essential
- Your last three years of filed accounts
- Management accounts for this year to date, and the last 12 months month by month
- Aged debtors and creditors
- A list of your loans and finance: lender, balance, repayments, end date and security
- Your top ten customers and their share of sales
- A payroll summary: headcount and monthly cost
- Leases: property, vehicles and equipment
- Shareholders, and any shareholder agreement
- Key customer and supplier contracts
- What the owners are paid, and any one-off costs
- A one-page note on your goals and timescale, or we cover it on the call
Helpful
- Bank statements for the last three to six months
- Your last four VAT returns, if you are VAT-registered
- Your order book or sales pipeline
No management accounts? You can still start. I work from your filed accounts and your last three months of bank statements, and the report says clearly what that limits.
What it costs
The fee depends on your size:
| Annual turnover | Fixed fee |
|---|---|
| Under £1m | £2,699 |
| £1m to £5m, or 10 to 24 staff | £4,299 |
| £5m to £15m, or 25 to 49 staff | £4,999 |
Find your band from your latest annual turnover, or your average number of employees if that puts you in a higher band. Over £15m turnover or 50 or more staff: a fixed quote on request.
Every quote is fixed in writing before I start, after a short brief. Charities and CICs pay half price. You pay nothing up front. When the report is ready I invoice, payable within 7 days, and send the final PDF once it's paid.
What takes it above the "from" price: more than one trading company, group structures, or detailed management information such as site-by-site or product-by-product figures.
How it works
A free 10-minute call if you want one, or straight to the brief by email. You send up to five years of accounts and the standard brief, I send a fixed quote within 24 hours, then the written report within five working days of receiving everything. After delivery you can send one follow-up email with your questions.
If a buyer or their adviser wants to see the report, they sign my standard release letter first.
Want your own records checked too? The 5 in 1 adds the due diligence on your records, the business cash flow forecast and a business plan, from £4,949.
About this service
Is this a valuation?
No formal valuation. The report gives an indicative value range, from published multiples of earnings for similar small company sales, adjusted for net debt and working capital. It is labelled as indicative and is not an opinion of value. Your corporate finance adviser or broker sets the asking price.
Will you find a buyer or run the sale?
No. I do not find or approach buyers, negotiate, or advise on the terms of a sale. That needs a corporate finance adviser, and some of that work is regulated. This report is the groundwork that makes their job, and the buyer's due diligence, quicker.
Can a buyer see the report?
Yes, once they have signed my standard release letter, which confirms the report was prepared for you and that I owe them no duty of care. Buyers do their own due diligence; they cannot rely on this report.
When should I have it done?
Ideally 6 to 24 months before you go to market. Most of what lifts the price, such as reducing reliance on you or a few customers, tidying related-company balances and evidencing the profit, takes months to put right.
How is this different from the business loan review?
The loan review looks at how a lender will read the business and how much it could borrow. The sale readiness review looks at the same accounts the way a buyer will, adds what comes off the price and the working capital a buyer will expect, and ends with a plan and a data room checklist.
Is my information confidential? Can you sign an NDA?
Yes. I am bound by the ICAEW Code of Ethics, which requires integrity, objectivity and confidentiality. Everything you send me stays between us, and I will sign an NDA before you share any documents, mine or yours, at no charge.
Starting to plan a sale? Read how to value my business in the UK, and how to sell my business in the UK: the steps, and why to start now.
More questions, including fees, confidentiality and timing, in the main FAQ.