Selling a business is one of the biggest decisions an owner will ever make. For many founders it represents years of work, so it’s understandable that the process can feel unfamiliar and uncertain. The good news is that while no two deals are identical, most business sales follow a broadly similar path – and knowing how to sell a business, stage by stage, makes the whole journey far clearer.
This guide walks through how long a sale typically takes, the steps involved from first conversation to completion, the two ways a deal can be structured (and why the difference matters for your tax bill), what buyers are really looking for, and the questions owners ask us most often.
How long does it take to sell a business?
The timeline varies with the complexity of the deal, but as a rough guide most sales take between three and nine months from the first conversation with a buyer to final completion.
Several things influence how long it takes:
- The size and complexity of the business
- How well organised your financial information is
- The type of buyer involved
- The pace of legal negotiations and due diligence
The better you understand the process – and the more prepared your information is before you start – the more quickly things tend to move.
The process of selling a business, step by step
Every sale is different, but the journey almost always moves through the same five stages.
Step 1: Initial conversations
Most sales begin with informal discussions that let both sides explore whether there’s a potential fit. You’ll talk about your reasons for selling, how the business works, how it performs, and what you’d like to happen next. If a buyer sees potential, things move forward from there.
Step 2: Information gathering and valuation
The buyer will want to understand the business in more detail – typically your financial accounts, a breakdown of revenue, customer information and how the business runs day to day. This is what allows them to evaluate the business and arrive at an offer.
Step 3: Heads of Terms
Once both sides agree on the basic shape of the deal, a document called Heads of Terms (or a Letter of Intent) is usually drawn up. It sets out the key points – the purchase price, the payment structure, and any conditions attached. It isn’t normally legally binding, but it gives everyone a framework for the next stage.
Step 4: Due diligence
This is where the buyer verifies what they’ve been told. It can involve reviewing financial records, inspecting contracts, and looking at staff arrangements and customer relationships. The aim is simply to make sure the buyer fully understands what they’re acquiring.
Step 5: Legal agreements
With due diligence complete, solicitors prepare the documentation to complete the sale. The main one is usually the Share Purchase Agreement (SPA), which sets out the final terms. Both sides review and negotiate it before signing – and at that point, the sale is done.
The two ways a sale can be structured
Most owners don’t realise there are two fundamentally different ways a sale can be put together – and the difference can be significant when it comes to tax.
Asset sale
In an asset sale, you sell the customer base and assets of the business. It’s often simpler and quicker to complete. The trade-off is the tax treatment, which can leave the seller with a considerably larger bill – meaning less of the proceeds end up in your pocket.
Share purchase
In a share purchase, you sell the shares of the company itself. This can unlock Business Asset Disposal Relief (BADR), which reduces the rate of Capital Gains Tax you pay and can make a meaningful difference to how much you walk away with.
The reason a share purchase is less common is that, in buying the shares, the buyer takes on the whole business – liabilities included. The added legal complexity and risk mean many acquirers simply aren’t willing or able to take it on.
This is one area where it pays to know your options before you start talking to buyers, because not every route to sale will leave you in the same position. At Tech Acquisitions we’re able to acquire businesses by share purchase, which means sellers can benefit from BADR — and we have the experience to handle everything that comes with it.
What buyers look for in a business
Every buyer is different, but most are looking for the same fundamentals: a solid client base, reliable recurring revenue, a team in place, and a business that isn’t entirely dependent on the owner being there every day.
If your business has those things – even imperfectly – it’s likely to be of interest to the right acquirer. You don’t need to be running a flawless operation. You need to have built something real.
At Tech Acquisitions we work with businesses across the telecoms and IT sector, and when we acquire a business we typically keep it running – so your clients, your team and your reputation carry on. For many of the owners we work with, that continuity matters just as much as the deal itself.
Getting the timing and your goals right
One of the most common things we hear is that owners wish they’d started the conversation sooner – not a commitment, just a conversation. Understanding what your business might be worth, what a buyer looks for, and what the process actually involves gives you options. When the time comes to move, you’re making an informed decision rather than a reactive one.
There’s often a belief that you have to be at the absolute peak of performance to sell. In reality it’s more nuanced than that: a business with strong fundamentals and a clear trajectory will attract interest at most stages of its cycle. What matters most is being ready and being informed.
It’s also worth getting clear on what a good exit looks like for you – and not only in financial terms. What happens to your team, to your clients, and what your own next chapter looks like all matter. Being clear on those things helps you weigh your options, and helps any buyer understand what’s important to you, which makes for a better conversation on both sides.
How to start the process
Whether you’re actively looking to sell or simply curious about what your business might be worth, the single most useful thing you can do is start talking. If you’d like a no obligation conversation with Tech Acquisitions – we work directly with owners, we keep things discreet, and we’ll always tell you honestly what we think. Get in touch
Frequently asked questions about selling a business
What documentation do I need to sell my business?
Buyers typically expect to see your company accounts, management accounts, customer contracts, supplier agreements, employee information and financial forecasts. Having these organised in advance makes the whole process much smoother.
What happens to my staff when I sell?
In many cases, staff continue working for the business as normal. Employees are usually transferred to the new owner under UK employment law (TUPE), which protects their rights and continuity of employment. Maintaining stability for the team is often a priority for buyer and seller alike.
Do I have to stay on after the sale?
Not necessarily. Some owners leave immediately after completion, while others stay involved for a period to support the transition – sometimes as a consultant or advisor – to ensure a smooth handover. It depends on your preference and the complexity of the business.