Picking the Best Time to Sell Your SME Business
Selling your SME is one of the most significant decisions you'll make as a business owner. It’s not just about timing the market—it’s often about timing of key stages in your life. Whether you're ready to retire, reduce stress, or simply move on to your next chapter, knowing when to sell is as much a personal decision as it is a strategic one. Preparing your business for sale is key to attracting the best value and deal structure and building revenue and profitability over say the next 2–3 years could mean higher value, but also greater investment and uncertainty.
Personal Timing: When Life Says “Now”
Many SME owners reach a point where the day-to-day demands of running a business begin to outweigh the rewards. If you're feeling the strain of responsibility, or planning for retirement, selling now could unlock the freedom and financial security you’ve worked hard for.
Market Timing
Despite political uncertainty and tax changes, our view of the market for sellers of SME businesses is positive. Here’s why:
- Strong buyer appetite: Private equity firms, consolidators, and international investors are actively seeking profitable UK businesses. We continue to receive consistent demand for IT services, facilities management and engineering/manufacturing businesses from both the trade and investment community.
- Lower interest rates: With the caveat of ongoing inflation putting pressure on the Bank of England to maintain currents interest rates for longer, borrowing costs are steady for now and the availability of funding remains healthy and so is fuelling acquisition activity.
- Tax planning urgency: Business Asset Disposal Relief (BADR) has risen from 10% to 14% in April 2025 and is set to increase again to 18% in April 2026. Starting the sale process now could help you lock in more favourable tax treatment, though time is now running out.
Build vs. Sell: What’s the Opportunity Cost?
Should you hold on for another 2–3 years to grow the business further? Possibly—but it depends on your goals and capacity.
- Value upside: With focused investment, you might increase EBITDA and command a higher multiple. But this requires strategic planning, capital, and energy.
- Time and money: Scaling typically demands reinvestment in staff, systems, and marketing. In the case of retirement sales, this needs to be planned for well in advance.
- Economic outlook: Forecasting the UK economy and how this will affect your business is always fraught with uncertainty. While some sectors may thrive, others could face headwinds from regulatory shifts or global instability.
Sale Timeline: Plan for 6–12 Months
A typical business sale process takes 6 to 12 months from preparation to completion. That includes valuation, marketing, buyer vetting, due diligence, and legal negotiation. Starting early ensures you’re not rushed—and gives you time to optimise your exit.
Final Thought
If you're weighing up whether to sell now or later, ask yourself: Will I be in a stronger personal and market position in three years—or is now already the right moment? With buyer demand high and tax changes looming, this could be the ideal time to begin your exit journey.
Ready to explore your options? Hornblower Business Brokers can guide you through every step. Please contact us via the form below, or call 020 8090 9380 or email [email protected]