A business sale, for many, is a process that will only be undertaken once. There are a multitude of considerations in how to sell a business but planning and timescales to completion are key.
Effective planning is vital to managing an efficient, successful sales process and can help to identify the factors that could affect both the speed of the transaction and the viability of a sale process.
Some timing factors are within your control as the seller, and some are not, such as the economic environment, regulations, or the buyer’s objectives.
Macro-economic environment
Stepping into 2026, the economic backdrop looks more encouraging. Last year saw inflation drift lower, interest rates eased, company valuations improved in many regional, and capital markets continue to stabilise. Favourable economic conditions can present opportunities for those looking to sell.
Foreign investment has increased following the weakening of the Great British Pound with overseas investors able to acquire UK assets at relatively low prices compared to historic levels. There is potentially a short window of opportunity for overseas investors to benefit from this position, providing stimulus for streamline processes and defending transaction values.
The UK tax environment also remains a key consideration when planning a sale. Capital gains tax and other transaction-related rules are subject to ongoing political and fiscal review, with future budgets carrying the potential for change. As a result, timing has become an increasingly important strategic factor. Sellers who engage early and move decisively can reduce exposure to policy uncertainty and transact with greater confidence under known conditions.
Macro-Economic factors are outside of the control of both the buyers and sellers. M&A activity is largely linked to the confidence of each party and the performance of the target company during difficult times.
Legislation
The company being sold, and the shareholders agreements in place, may require additional regulatory considerations before a sale can be completed.
For instance, if a company operates as part of the supply chain for any Ministry of Defence contractor or supplier, then government clearance for the sale is required. This can be notoriously slow, as the government will have a response deadline to which they can operate and will usually utilise all time available. Planning for this early on will ensure that as soon as an offer is agreed the lawyers can begin to request clearance as soon as possible.
Legal complexities such as ownership or preference rights to any of the share issued may cause delays if not considered before beginning the sale process. Shareholders alignment and maintaining a common goal from the outset is helpful in maintaining the pace of a transaction.
Buyer & seller timescales
Both parties can influence the speed of a transaction and the reasons for influencing the timings vary.
For example, a listed buyer may wish to announce a strategic acquisition within a certain timeframe while other buyers prefer to take their time, perform pre-offer diligence, and monitor the performance carefully before committing to an offer.
On the other hand, a seller may wish for a quick sale to maximise gains if there has been strong recent performance, or limit losses if the business has performed below expectation. Personal drivers such as ill health, retirement, and bereavement can also force a quick sale.
Buyers may look to influence timescales during negotiations for their own benefit. However, a seller, and their advisers may speak to multiple interested parties and use this to control the pace and maintain momentum of the transaction.
Ideally, the seller’s and prospective buyer’s timelines will be aligned from the outset, and both will work together to reach the desired outcome. Typically, for Small to Medium-sized Enterprises (SME’s), a reasonable expectation for the transaction timeframe is 9 to 15 months.
By understanding the factors that can impact the speed of a transaction, and by seeking advice of experienced advisers, avoidable delays can be removed, allowing your business sale to be completed smoothly and efficiently.
If you are seeking support with selling your business and want to discuss an exit strategy or are seeking other guidance and advice, arrange a call with us today and find out how we can help.
Please note that this content is not intended to give specific technical advice. It is designed to highlight some key information rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
