Navigating the Exit: Insights from small business Sales

Are you contemplating the exit of a profitable small business? If so, you’re not alone. Many entrepreneurs reach a point where they consider selling the very company they’ve spent years building. Today, I want to share my personal journey and invite others with relevant experiences to shed light on this pivotal process.

For the past six years, I have successfully nurtured a thriving business that is now generating approximately £700,000 in annual turnover, with an impressive growth rate of around 40% year-over-year. If all goes as planned, we anticipate crossing the £1 million mark by next year. While my business is performing well and generating a solid profit of about £200,000 annually, I find myself at a crossroads: should I continue running the company or look to transfer ownership?

I’m fortunate to have a dedicated team that manages the day-to-day operations, allowing me to take a step back from the daily grind. However, I am still heavily involved in key decision-making, as delegation has proven more challenging than anticipated. Although I have hired talented individuals, none have yet displayed the same level of initiative and drive necessary to fully take the helm.

Throughout my research on exiting this small business, I’ve encountered several challenges:

• Valuation and Market Perception: Many business brokers indicate that finding a buyer for companies with an annual turnover under £1 million can be quite difficult.

• Unsatisfactory Brokerage Experiences: I previously enlisted the services of Knightsbridge after reading positive reviews, but my experience fell short of expectations, with few quality leads surfacing.

• Limited Listing Platforms: The majority of business-for-sale websites seem cluttered with stale and generic listings, making it hard to stand out in the market.

• Exploring Flippa: Currently, I’m considering Flippa as a potential platform, but their 8% success fee raises concerns about overall cost-effectiveness.

With these considerations in mind, I’m reaching out to connect with others who have successfully navigated the sale of a similar small business. Whether you’ve gone through a broker, executed a private sale, or utilized niche platforms, your insights would be invaluable as I determine the best path forward.

In summary, I am actively evaluating my options for exiting a profitable company that has been my focus for six years. While I’m not in a rush to sell, I welcome advice from those who have successfully exited businesses in the same revenue range.