Thinking of selling your business? Start with these five questions
Before discussing a price, get clear on what you want your life, role and responsibilities to look like next.
By Most owners don't wake up one day wanting to sell. They wake up wanting something to change: fewer hours, less stress, more time, a new challenge. Selling is one answer, but not the only one. These five questions help you work out what you actually want before anyone talks about price.
1. Do you want to retire, reduce your hours or change your role?
These outcomes are not interchangeable. Retirement may point toward a clean departure.
Reducing hours may be possible through a stronger management layer, a minority investor or a staged handover. Changing your role may mean keeping the work you enjoy while transferring administration, rostering or business development.
Write down what a good ordinary week would look like two years from now. Include hours, responsibilities, income needs and the decisions you still want to make.
This turns a broad desire for change into something you can test against different options.
2. What alternatives to a sale have you considered?
A sale may be right, but it should not become the default simply because the current arrangement is tiring. Alternatives can include recruiting an operations manager, promoting a capable employee, narrowing the service mix, bringing in a partner or planning an internal succession.
Each has costs and trade-offs.
An owner can explore these alternatives while also learning about a sale. A buyer conversation does not require a commitment.
Comparing paths can clarify what you value and what would need to be true for a transaction to work.
3. Who else is affected by the decision?
Family members may rely on the business income or have expectations about succession. Employees may hold important knowledge and relationships.
Customers and suppliers may depend on the owner's presence. Mapping these interests does not mean everyone participates in every early conversation.
It means their position is not discovered too late.
Think about who needs to know, who needs to advise and who may eventually need reassurance. Confidentiality can matter during early discussions, but so does a credible communication plan once a transaction becomes likely.
4. What do you personally need from an outcome?
The headline price is only one consideration. Timing, certainty, payment structure, ongoing involvement, risk and emotional readiness can matter just as much.
A higher contingent amount may be less useful than a lower fixed amount. A quick exit may sound attractive until you consider the loss of routine or relationships.
Rules of thumb you hear from mates or read online rarely fit your situation. Your accountant and financial planner can show you what different outcomes would actually mean for you.
5. What would make you comfortable saying no?
A good process includes permission not to sell. Decide in advance which issues are non-negotiable and which are preferences.
Consider what evidence you would need about a buyer, finance, treatment of information and the proposed handover.
You do not owe an immediate answer because someone has approached you. Take time, involve advisers and compare what is offered with the future you actually want.
Your checklist
What to do next
- Describe your preferred role in two years
- List realistic alternatives to selling
- Note the people affected by a change
- Separate price, timing, certainty and involvement
- Write down your reasons to pause or say no
Example
Priya owns a maintenance business and initially says she wants to sell. After mapping her ideal week, she realises she mainly wants to stop scheduling jobs and handling weekend calls. She explores a manager hire while keeping a possible sale open. The exercise does not decide for her. It gives her a clearer standard for comparing both paths.
An illustrative example, not a real client or transaction.
Questions owners ask
Do I need a valuation before talking to a buyer?+
No. An initial conversation can help you understand the process. Independent valuation advice may become useful before evaluating a proposal.
Should I tell my team immediately?+
Not necessarily. Plan carefully with advisers, balancing appropriate confidentiality with a responsible communication process.
Can I explore without committing?+
Yes. A conversation is not an agreement to sell or grant exclusivity.
Important
This article is general information only. It doesn't take your personal circumstances into account and isn't financial, legal, tax, employment or valuation advice. Velaro Group is a buyer of businesses. It isn't a business broker, licensed financial adviser, registered tax agent or law firm, and it doesn't act for sellers. Please get advice from your own accountant, solicitor or financial adviser before making any decision. Read the full disclaimer.
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