Thinking About Selling Your Business? Here’s How the Process Works
Lets explain the process:
Selling a business is one of the biggest decisions you’ll ever make. Whether you’re thinking about retirement, succession planning, or simply ready for a new chapter, understanding the process is key to getting the right outcome, both financially and personally.
At MRG Industries, we speak with many owners in the UK construction and manufacturing sectors who are exploring a sale but aren’t sure where to start. So here’s a straightforward overview of how the process typically works and what you can expect.
1. Decide Why and When to Sell
Every business owner has different motivations for selling. You might be approaching retirement, looking to reduce stress, or simply ready to hand over the reins. Clarifying your goals, whether it's a full exit, a phased transition, or continued involvement, will shape the structure of the deal.
Tip: You don’t need to be 100% ready to sell to start the conversation. Many owners begin planning 6–24 months ahead.
2. Get Your House in Order
Buyers will look for stability, good financial records, and operational consistency. You don’t need a “perfect” business, but having clear documentation, up-to-date accounts, and a capable management team will significantly boost confidence and value.
What helps:
Three years of clean, accurate financials
Evidence of repeat customer relationships
Documented systems or procedures
Clarity on any owner-dependent roles
3. Engage in Initial Conversations
You might approach a buyer directly or work through a broker. Either way, early-stage conversations are usually informal and confidential. This is where both sides assess alignment, values, vision, and expectations.
At MRG Industries, we handle this stage personally and discreetly, without pushing for commitment. It’s about mutual fit, not pressure.
4. Receive an Offer / Heads of Terms
If there’s alignment, the buyer will submit a Heads of Terms (HoT)—a non-binding outline of the deal structure, including price, payment terms, transition support, and key conditions. This is the starting point for due diligence.
5. Due Diligence
This is where the buyer verifies the information provided, financials, contracts, liabilities, HR records, and so on. It can feel intrusive, but a good buyer will manage this professionally and with minimal disruption.
Working with your accountant and solicitor at this stage is essential to ensure things move smoothly.
6. Final Agreements & Completion
Once due diligence is complete and both sides are satisfied, final legal documents are drafted and signed, usually including a Share Purchase Agreement (SPA) and related handover or employment terms (if applicable).
The deal completes on an agreed date, and the business formally changes hands. From here, your involvement if, any, depends on what was agreed (e.g. transition support, consultancy, or full handover).
7. After the Sale
If you’ve stayed on to support the transition, this phase focuses on continuity: reassuring staff, maintaining customer relationships, and handing over key responsibilities. A well-structured transition helps protect the business and preserve its value long term.
Final Thoughts
Selling your business isn’t just a transaction; it’s the culmination of years of work. The right buyer will recognise that and treat the process with care, professionalism, and respect.
At MRG Industries, we’re focused on long-term ownership, legacy preservation, and keeping things simple. If you’re starting to think about an exit, even if it’s a year or two away, we’d be happy to have a confidential conversation with no pressure and no obligation.
