We are delighted to welcome Philippa Tuck to Business Partnership as our new Regional Partner for Bristol.
With 25 years of commercial experience, Philippa brings a strong track record of helping established businesses uncover opportunities for growth, improve performance and build long-term value.
Her approach starts with a question that goes beyond the figure many business owners naturally want to know: what could your business be worth, and what would it take to get there?
Throughout her career as a commercial director and fractional Chief Growth Officer, Philippa has worked with established businesses to identify value that may not yet be reflected in their financial performance.
That can mean reviewing pricing that hasn’t changed in years, reducing a company’s reliance on its owner or identifying where sales and marketing activity could be working more effectively together.
While Philippa has worked across a range of sectors, the fundamental drivers of business value often remain the same. The challenge is identifying where the opportunity lies within each individual business and putting the right steps in place to realise it.
Her focus is also firmly on delivery. Rather than simply identifying what could change, Philippa stays involved to help businesses turn those opportunities into tangible results.
In one business, that approach helped increase turnover from £12 million to £19 million in just one year, exceeding the board’s £18 million target.
Philippa brings experience from both sides of the transaction.
She has worked with owner-managed businesses to strengthen and build value ahead of a future sale, while also working within investor-backed businesses following acquisition to deliver the growth that attracted investment in the first place.
This gives her a practical understanding of what buyers look for in a business, the qualities they may be prepared to pay a premium for and the issues that can quietly reduce value when it comes time to sell.
Philippa also works with private equity investors and has completed Imperial College Business School’s Private Equity Executive Programme.
For owners considering a sale, preparation can begin long before the business reaches the market.
Philippa typically works with established owner-managed businesses where there is already a strong foundation, but where growth, profitability or eventual sale value still has further potential.
Some may be considering a sale within the next 12 to 24 months, while others are looking at acquisition as the next stage of their growth.
In either case, the decisions made before a transaction can have a significant impact on the value ultimately created.
Philippa explains:
“It starts with being clear about what success actually looks like for you, and then building a plan to get there. Quite often that isn’t purely a business question. It’s a personal one.”
As Regional Partner for Bristol, Philippa can now support business owners across a wider part of their journey.
That could mean strengthening a business and building value ahead of a future exit, preparing it for market and managing the sale process, or helping an ambitious buyer identify and acquire the right business for their next stage of growth.
Her appointment expands Business Partnership’s local support for business owners across Bristol and the surrounding area, combining local relationships with the knowledge and reach of our wider national network.
Alongside her commercial work, Philippa is a non-executive director at Itecho Health, chairs The Forum Group, a peer advisory group for entrepreneurs, and mentors founders through the NHS Clinical Entrepreneur Programme.
Away from work, she enjoys cooking, running, tennis and hot yoga and is happiest outdoors, usually accompanied by Huxley, her wirehaired dachshund.
If you own a business in Bristol or the surrounding area and are considering a future sale, looking to grow through acquisition or want to understand how you could build greater value in your business, Philippa can help you explore your options and plan what comes next.
Get in touch with Philippa to start the conversation.
Selling a business is often talked about in stages and numbers; valuations, offers. Heads of Terms. due diligence, and then the completion itself. But behind the figures, documents and detail is something just as important – the people who helped build the business in the first place.
For employees, finding out that the company they work for is being sold can create immediate uncertainty. Will I still have a job? Will my role change? Who will I report to? Will I have to work somewhere different? For the owner, those questions arrive during what is already one of the busiest and often most emotional periods in the life of a business.
Getting the people side of a sale right isn’t simply about keeping employees happy. Strong HR processes can give buyers greater confidence, help due diligence run more smoothly, protect productivity and reduce the risk of key employees leaving at exactly the wrong time.
To explore what business owners should be thinking about, Business Partnership had the pleasure of chatting with Fiona McKee, founder of The HR Practice, about the people side of selling a business. Fiona brings a wealth of HR and M&A experience, having previously worked as a Global HR Director. She founded The HR Practice five and a half years ago, initially specialising in merger and acquisition integration and helping businesses bring together their cultures, policies and processes following an acquisition.
When preparing a business for sale, there is plenty to think about before employees are even aware that a sale is being considered. Financial performance, customers and profitability will naturally be high on the list, but Fiona highlights another area that should not be overlooked; how well the people side of the business is managed.
From an HR perspective, getting the basics right can make a real difference when a buyer begins looking more closely at the business. Are employment contracts in place and up to date? Is the employee handbook accurate? Are HR processes documented? Is performance being managed effectively? These may feel like everyday operational details, but together they can give a buyer a much clearer picture of how well the business is run.
As Fiona explains, “If you’ve got robust processes in place… you’ll be a more attractive business to a buyer“.
When those foundations aren’t there, the opposite can happen. Fiona describes businesses without proper processes as sometimes feeling a little like the “Wild West” – which can leave a buyer wondering what else they might uncover.
That’s why Fiona recommends considering an HR audit ahead of a sale. It can identify gaps early, giving the owner time to address them before they become questions during due diligence. Missing contracts, outdated documentation or poorly established processes might feel relatively minor during the everyday running of a business, but they can take on much greater significance when a buyer and their advisers begin looking closely.
Unresolved employment risks could even result in a seller being asked to provide indemnities against issues arising in the future. Fiona’s point is that some of these problems are relatively straightforward to address when they’re identified early. After spending years building a valuable business, the last thing you want is for avoidable HR gaps to create uncertainty at the point you’re trying to sell it.
Good HR preparation isn’t just good housekeeping. It can help give a buyer confidence that they’re acquiring a well-managed business.
For many business owners, this can be one of the hardest parts of the sale.
There will often be stages where the transaction needs to remain confidential and only a small number of people can know what is happening. But once the time is right to tell employees, how the news is communicated matters just as much as when.
Fiona believes the current owner should play a visible role in that conversation. Employees know and trust the person who has led the business, so hearing directly from them can provide reassurance at a time of significant change. It’s important that employees understand the rationale for the sale. Why have you decided to sell? Why was this particular buyer chosen? What could the next chapter look like?
The acquiring business is likely to have similar values and culture and its scale could provide broader development and career opportunities for employees. Sharing this wider perspective can help employees understand the rationale behind the decision and reduce the likelihood of assumptions being made.
Communication should not end with the initial announcement either. Employees are likely to have questions and concerns as they process what the sale could mean for them. As Fiona explains, when there is a gap in communication, people naturally fill that gap themselves, often with rumours.
That is why clear, consistent communication throughout the transition is so important.
Once employees hear that the business is being sold, their first thoughts are likely to be personal…
“What does this mean for me?“
Will I still have a job? Will my role change? Will I have a new manager? Will I still work in the same location? If I work from home now, could that change?
These are the kinds of questions Fiona says business owners should try to think through before the announcement is made. The more clarity you can provide from the beginning, the less room there is for uncertainty to grow.
Where a new line manager is going to be introduced, they should also be prepared for that conversation. Having them visible and available to speak with employees can help begin building trust with the people they will be working with.
An independent HR consultant can be valuable here too. Employees may have concerns they do not feel comfortable raising directly with the current or new owner. Giving them the opportunity to have those conversations can help identify worries early and create a clearer picture of what support the team needs during the transition.
Ultimately, employees want to understand where they fit into the future of the business. The more answers you can give them, the easier it becomes for everyone to focus on what comes next.
In all businesses there are key people that need to be retained to ensure continued success. They might hold key customer relationships, have specialist knowledge, understand important processes or play a central role within the team. Keeping those people engaged throughout the transition is therefore key for both the seller and the buyer.
Retention bonuses or other incentives can sometimes be considered, but Fiona believes there is an important question to answer first…
“Who are the genuinely key people in the business?“
It is easy for an owner to assume they already know the answer, but Fiona explains that understanding the relationships and dynamics within the wider team can reveal a different picture. The people considered most senior are not always the people who will be most important to the business moving forward.
Any retention arrangements should therefore be carefully considered and focused on the people who genuinely matter to the future of the business. Keeping those employees informed, valued and engaged can help protect the knowledge and relationships a buyer is expecting to inherit.
Naturally, you want employees to feel reassured about the sale and what comes next. But Fiona warns against trying to make everything sound perfect, noting “Be positive about the future, but be realistic too”.
“Employees know the business and they know you. If the message suddenly feels overly polished or promises that everything will be wonderful, it can create more doubt rather than reassurance.”
Consistency is just as important. The message shared with the wider team should match the conversations happening individually. Telling employees one thing together and something completely different behind closed doors can quickly damage trust.
You do not need to have every answer. Be open about what you know, what you do not know yet and what employees can expect to hear more about as the integration progresses. Reassurance comes from honest communication, not unrealistic promises.
Depending on the structure of the sale, TUPE may also need to be considered. TUPE, or the Transfer of Undertakings (Protection of Employment) Regulations, is designed to protect employees when a business or part of a business transfers to a new employer.
For a seller, the important thing is to understand early on whether TUPE applies and what that means for your employees. Depending on the circumstances, there may be requirements around informing and consulting with the team.
Even changes that might seem relatively small can matter. Fiona gives the example of changing an employee’s pay date, which could require consultation as part of the process. You do not need to become an employment law expert just because you are selling your business. What matters is getting the right HR and legal advice early enough to understand your responsibilities and plan for them properly.
The earlier you know what is required, the easier it is to make it part of the sale process rather than dealing with it at the last minute.
After months of preparing, negotiating and working towards completion, it can be tempting to feel like your part is finished once the deal is agreed. But for your employees, this may be when they need you most.
When asked for the single biggest piece of advice she would give a business owner going through a sale, Fiona’s answer was simple…
“Be present”
Be visible, listen to concerns and give people the opportunity to ask questions. Fiona also recommends working with an HR consultant who can provide additional support and give employees another person to speak to throughout the transition.
It is also important to work with the new owner rather than against them. You chose that buyer for a reason, so helping them build relationships with the team can make the transition smoother for everyone.
Selling your business might mark the end of your chapter as the owner, but for your employees, it is the beginning of a new one. How you support them through that change can make a lasting difference.
A successful business sale is about more than reaching the right valuation and finding the right buyer.
The people within the business can be a huge part of what makes it valuable. Their knowledge, experience, customer relationships and understanding of how the business operates do not simply disappear when ownership changes. Thinking about HR early can help identify potential issues before due diligence, give a buyer greater confidence and make the eventual transition easier for the people involved.
Then, when the time comes to communicate the sale, being visible, consistent and open with employees can help protect the team and the business you have spent years building. For Fiona, the people side of a sale should not be an afterthought. It should be considered alongside every other part of preparing a business for its next chapter.
At Business Partnership, we help business owners prepare for sale and navigate the process from the early stages through to completion. Working alongside specialists such as Fiona McKee at The HR Practice can also help ensure the people side of that journey receives the attention it deserves.
Get in touch and we’ll talk it through.
Our thanks to Fiona McKee for sharing her time and experience for this insight.
Fiona is the founder of The HR Practice, a Glasgow-based HR consultancy working with SMEs and entrepreneurial businesses across Scotland and the UK. A Chartered Member of the CIPD and formerly Global HR Director for a multinational services and technology business, Fiona set up The HR Practice with a particular focus on mergers and acquisitions, helping businesses bring together cultures, policies and processes following a deal.
The HR Practice provides retained and project-based HR support, including HR audits, employment contracts and handbooks, performance and absence management, restructures and TUPE, and M&A integration. If you’re preparing your business for sale and want to make sure the people side is in good order, you can find out more at thehrpractice.co.uk.
The views expressed are Fiona’s own and are provided for general guidance. Business owners should take specific HR and legal advice on their own circumstances.
What do Warren Buffet, Idris Elba and long jump have in common? In the first of a new series of posts, we get to know one of our Regional Partners. Geoff Kwateng supports business sales and purchases across Crawley, Guildford and Reigate and the surrounding areas. He reflects on his personal and professional highlights since joining Business Partnership, and the best piece of advice he’s ever been given.
Meet the team and find your local business broker
Very positive. I joined when there was a lot of uncertainty in the market thanks to legislation changes that came into force in April. At the time, buyers and lenders were ultra cautious. I took the opportunity to join local networks to build my profile and raise awareness of the Business Partnership brand.
Thankfully, there were no more big changes announced in the Autumn 2025 Budget. Buyer confidence returned, and the market picked up. Since then, it’s been very busy, and I currently have four business sales in progress, with offers on the table for all of them.
Getting my first business sale under my belt was a big milestone. I supported the sale of a storage and removals business, using the strength of the Business Partnership network to find a buyer. I’m also proud to have offers coming in for all four businesses I am currently working with.
I am someone who is always learning – through research, sharing ideas and asking for opinions – so I have found our Partner meetings so valuable. It’s a great place to get new ideas and ask for feedback. The best thing about Business Partnership is that you run your own business, but there’s always this brilliant network of minds to call on. I’ve worked on building local connections – both online and through networking. I enjoy attending tailored events focused on accounting, finance and wealth management.
Yes, the amount of people I meet who are unaware people like us exist! It’s been a real eye-opener and a good opportunity to raise my profile and awareness of what Business Partnership does. I am now the go-to person for brokering business sales in several local networks!
I would say there are five big benefits:
Preparing to sell. I would raise awareness that there are people out there who can help you get everything in order and prepare to sell your business. It’s incredible how many owners think they can sell without putting in the groundwork. I like to think of preparing to sell as washing your car before you sell it!
It’s an ideal fit for anyone experienced in business development or consultancy. If you have a sound understanding of how the market works and are good at building relationships, joining the network is a great opportunity to build on that knowledge and develop your own business.
When I’m not working, you’ll find me in the gym, listening to music or watching sports. Athletics and football are my favourite sports to watch.
Long jump. I enjoyed competing as a child and reached a pretty decent level.
Focus on what you’re good at and let the experts deal with the rest. Someone shared this with me in the last year, and since I took their advice, my business has really taken off.
Idris Elba. He needs no introduction!
The CEO of Red Lobster, Damola Adamolekum. We’re the same age, and I would love to hear his story.
Warren Buffet – a fascinating man I could learn a lot from about finance and investing.
Michael Jackson – I’ve always been a huge fan of his music.
If you own a business in a GU or RH postcode and are planning to sell, working with Geoff could provide the impetus and support you need to achieve your plans. Get in touch to start the conversation.
When selling a business, diverse customer and supplier portfolios are sought-after assets. Over-reliance on a few customers or suppliers is a major concern and makes buyers very wary. Businesses achieving the most profitable sales are ultra clear on their key customers and suppliers and what it means for future success. This understanding has become essential in our current economic climate.
In this post we explain why a varied client/supplier portfolio is a valuable business asset when selling your business, the benefits of building diversification, and some simple steps to help you get there.
From a client perspective, a diverse portfolio means your customer list comes from a variety of sectors, locations and industries. In the business-to-business world we focus on size and sector, while in business-to-customer scenarios its more about varying demographics and segments.
When we talk about suppliers, diversification is about building access to a range of resources and knowledge in different locations. For raw material suppliers, you also want to verify that your suppliers aren’t all dependent on a single source.
When we think of factors that drive business value, having a diverse customer and supplier base is one subject vendors and buyers can agree on. Diversity builds business resilience by reducing dependency on a single supplier or customer. It also generates stronger financial performance, which equates to a higher market valuation. Good news for vendors and buyers alike.
The more reliant your business is on one customer or supplier, the higher the risk. For example, if you rely on one delivery company to distribute your products and that company falls into difficulty, how would you continue to serve your customers? Diversification is part of good risk management strategy.
Buyers are looking to buy businesses with a diverse customer base and stable vendor relationships. Diversification creates flexibility and makes it easier to adapt and reach new markets in the future.
Are you too reliant on one or two customers for regular income? Do you spend too much with a single supplier? Take time to review and identify the biggest culprits and the risks they present.
Monitor customer activity over time to understand the average value and length of contract. Profile the type of customer you would like more of and create a marketing strategy to attract them and grow your portfolio.
Are customers asking for additional or complementary products and services? Could you adapt or improve your offer to attract a more varied customer mix and/or enter new markets?
Maintaining positive supplier relationships can lead to diversification opportunities. To stay competitive, keep existing suppliers close and be open to linking up with new providers.
You might think managing a diverse portfolio is time-consuming and admin-heavy. In fact, with the right processes and procedures in place it doesn’t have to be. A business broker can help you kick-start business growth and build value through diversification.
Diversification is an effective risk management strategy to protect your business and enhance market value. Business Partnership brokers have extensive experience working with vendors and buyers to identify opportunities to add value and reduce business risk. Find and make contact with your local broker here.
For vendors, branching out into new sectors and industries is a credible growth strategy you can pursue to increase business value. If this isn’t a road you intend to travel, you can still research the possibilities and pass this on as an attractive part of your sale package. Either way, it makes complete sense to analyse and expand your customer and supplier portfolio with a view to identifying gaps in the market and driving business growth.
Small and medium-sized enterprises (SMEs), which account for nearly 99% of UK businesses, are facing what industry groups and lawmakers describe as a “cost crunch” comparable to pressures seen during the pandemic, but without equivalent support. Multiple business bodies and parliamentary committees are now urging urgent action as April 2026 approaches.
The Federation of Small Businesses (FSB) has warned that a concentrated cluster of cost increases landing in April will hit SMEs hard. The key drivers include:
This combination is projected to dramatically increase operating costs for many small firms, with some estimates suggesting an employer with nine staff could see employment costs jump by roughly £25,000+ annually due to wage and sick pay changes alone.
The FSB has specifically described the situation as a “perfect storm” of cost pressures; not one isolated factor, but multiple policy and price changes hitting simultaneously.
The spotlight isn’t only on April’s cost shifts. The House of Commons Business & Trade Committee recently concluded that small businesses are now operating under cumulative structural pressures comparable to the pandemic era (or worse) without emergency support. According to the committee’s findings, SMEs face a combination of:
The committee described these pressures as “structural and self-reinforcing“, warning they risk accelerating closures, hollowing out high streets, and undermining UK economic growth if left unchecked.
Multiple industry reports indicate that the mounting pressures are already affecting business confidence. Many SMEs expect to:
This aligns with recent small business research showing cost concerns are at their highest levels on record, with running expenses topping the list of strategic business worries.
Small businesses are deeply embedded in the UK’s economic fabric. Sharp cost increases have multiple knock-on effects:
The committee and business groups are calling for policy responses that recognise the distinct scale and role of SMEs, rather than uniform cost increases that disproportionately hit smaller firms.
While macroeconomic and policy environments evolve, businesses can take proactive steps to build resilience:
Cashflow planning
Prepare scenario forecasts that factor in April’s cost shifts and test projected impacts on liquidity, employment costs, and margins.
Cost benchmarking and pricing
Review customer pricing models and cost structures to ensure rising overheads are appropriately factored into commercial terms.
Operational efficiency
Tighten operational controls, streamline procurement and seek cost-effective technology solutions that protect service quality.
Engage with sector bodies
Participation in representative groups like the FSB and business alliances helps amplify SME voices in policy discussions and reform calls.
Funding and liquidity options
Explore flexible finance solutions, such as invoice financing, to smooth short-term cashflow gaps without immediately diluting ownership. However, this approach should be used cautiously where forward sales visibility is weak. Additional borrowing in an uncertain trading environment can amplify risk rather than relieve it, particularly if revenue projections fail to materialise. Careful stress-testing of repayment capacity and downside scenarios is essential before increasing leverage.
The emerging picture for April and beyond is one of intensifying cost challenges and uncertainty for UK small businesses. While policy shifts and economic conditions are beyond individual control, robust planning, financial discipline, and informed decision-making will be key to navigating this period.
At Business Partnership, we’re monitoring these developments and advising owners on cashflow optimisation, valuation impact analysis, and strategic positioning; all critical as operating environments shift. If your business is assessing the impact of these cost pressures or considering exit and acquisition opportunities in this context, we can help you assess value and identify options that align with your goals.
This article is provided for general informational purposes only and does not constitute financial, legal, tax, or investment advice. Every business operates under unique circumstances, and decisions should be made only after taking appropriate professional advice tailored to your specific situation. Business Partnership accepts no liability for actions taken or not taken based on the content of this publication.
We’re operating in a business buyer’s market. This means vendors who are keen to sell their business must be prepared to do some legwork to find the right buyer and achieve the most profitable outcome. Identifying untapped business potential and possibilities for future growth is one tactic vendors are using to achieve a higher valuation and attract prospective buyers.
Identifying growth opportunities is not about creating additional work for your leadership team. You don’t have to create and execute a business development strategy in order to sell your business. The seed of an idea, a customer commitment, or detailed research could be enough to add significant value to your business in the eyes of a buyer.
Buyers are looking for strategies that will lead to sustainable business growth. If you plan to sell and exit your business this year, researching what that growth could look like is a good place to start.
Buyers perceive value in opportunities to scale a business, so keep this in mind as you carry out your research.
Consider existing customer feedback as a primary source of information about customer needs and wants. Analyse online reviews and feedback on social media for hints of challenges and problems customers would like your business to solve. For example, travellers tend to be very honest in their review of a hotel or accommodation, pointing out where their needs have not been met, which could highlight untapped potential.
Would your customers be responsive to a feedback survey (not all are)? If so, carefully worded questions could generate valuable suggestions for future products and services. And, if you change your mindset and look at customer complaints as an opportunity rather than a threat, they can be a goldmine for feedback.
If you sell online, take a look at your website analytics and identify which products/services are popular and not so popular. Which products or services are people searching for on your website, but perhaps not finding? Review other sales channels to understand whether there is potential to expand or enhance your product/service mix for your customer base.
Evolving markets can be a source of new opportunities. Stay flexible so your business is ready to respond to change.
We all have plans that we have shelved because we realised our team didn’t have the skill set or knowledge to deliver. Resurrecting these as part of your growth strategy could be attractive to a buyer who does.
Have an open conversation about your plans and float the idea of developing a long-term partnership – which may even become the source of new ownership.
Part of a broker’s role is to help vendors achieve the most profitable sale price for their business. If our initial valuation doesn’t match with yours, we can work with you to identify ways to increase value from the perspective of a buyer. Find your local business broker and ask how we can help.
Beyond current performance, buyers are looking for clear ways to scale the business, such as:
Clear gaps in the market: responses to customer challenges and pain points that may emerge from your research.
New untapped markets: look at market trends your competitors might already be exploiting and get yourself a piece of the pie. Expanding into overseas markets may also generate higher demand and profit.
New product lines: think complementary products and services, add-ons, upgrades and diversification to spread risk.
Digital upgrades: in software and systems may improve flexibility and responsiveness, and generate higher return on investment.
Subscription models: highly valued by buyers, avenues to generate regular income are sought after on the business sales market.
When you sell a residential or commercial property, one sure-fire way to increase its market value is to apply for planning permission to extend. There are several ways you can highlight potential business growth to buyers in a similar way.
Even if, under current ownership, you have no plans to pursue growth, identifying viable expansion paths and creating plans to highlight the business’s potential may justify a higher asking price.
Having determined the areas where a new owner may seek to scale the business, create a strategy documenting your ideas, research and potential for growth. Include agreements in principle with significant customers or suppliers, and evidence of predicted return on investment. Hand this to interested buyers to create interest, impress and excite them about the possibility of owning a company with scalable prospects.
To add value your business and achieve the most profitable sale price, follow our three steps:
Consult a Business Partnership broker to explore and identify untapped potential buyers find attractive. Complete our contact form to arrange a conversation.
As we head rapidly towards a new calendar year, you might well be considering the future of your business. 2025 has been a year of challenge and change. Despite this, it feels like the business market is on an upward trajectory. Here at Business Partnership, we are optimistic about the prospects for business owners who want to sell in 2026. Buying and scaling a business is still a viable business proposition and investment opportunity.
Several UK Start-Ups have been snapped up by big brands this year – Deliveroo, Lux Rewards and Peak.ai among them. The Autumn Budget wasn’t half as bad as the media suggested it would be. According to ONS data, the value of domestic mergers and acquisitions (UK companies acquiring other UK companies), between July to September 2025 totalled £5.3 billion – £1.9 billion higher than the previous quarter.
However positive the prospects, you might be thinking ‘do I really want to still be doing this next year’? Perhaps you’re approaching retirement, or you have health or family issues you need to prioritise. If this is your personal situation, you might feel under a little more pressure to make progress and get the ball rolling in 2026. Deciding to sell your business is a huge decision. Achieving both maximum profit, favourable terms and the best outcomes for everyone involved are always our objectives.
If you are looking to buy, there are plenty of profitable, stable businesses on the market with excellent growth potential. Take a look at our current listings.
Selling a business is never without its risks, so if you are thinking about selling in 2026, improving sellability should be your focus. Read on for some frequently asked questions and top tips to help prepare your strategy, make your business attractive to buyers, and put it in the best possible position to sell.
Start with your Why. Where do you see yourself having sold your business? What are your personal and financial goals from the sale? Keep these personal motivations in mind throughout what can be a long, drawn-out business sale process. In the case of joint or multiple owners, your individual Why’s could become a sticking point during negotiations. We recommend aligning expectations now to help you over the months to come.
It’s not unusual for a lone vendor to feel at a loss once they’ve sold, so make plans now to enjoy what comes next and prepare yourself mentally. Of course, selling your business doesn’t always mean you have to leave after signing on the dotted line. Many owners choose to remain in the business as a consultant or in another capacity under the terms of a deal.
You may feel ready to sell on a personal level, but if selling is something you have only been considering for a few weeks or months, there may be work ahead to prepare your business for sale. Business readiness activities include developing staff to step up and replace you, growing your customer base to add value to the bottom line, refining processes, and reviewing governance.
Write a list of all the positive attributes of your business and the reasons why a buyer might find these an attractive proposition. This will assist you in the future when positioning your business or negotiating the terms of a deal.
The first thing a buyer wants to see is up-to-date business records and robust record-keeping processes. We’ve lost count of the number of vendors who regret not maintaining business records prior to due diligence. If you want to prepare thoroughly, start reviewing key financial, commercial and people records before you engage in the sale process. It will speed up due diligence, eliminate errors, and showcase a well-managed business to interested buyers.
The second thing a buyer wants to see is no evidence of outstanding challenges or issues. Internal issues may cause problems in a future sale, so identifying and resolving these now will help reduce the risks for interested buyers. Think about key employees due to retire, contract negotiations, ongoing legal action or client/supplier disputes. Make sure to document every action to provide evidence during due diligence, if required.
The best way to prepare your business for sale and achieve the most profitable outcome is to identify the areas in which you might be able to add value. Recurring revenue streams, healthy cashflow, secure contracts, and a scalable business model are all attractive to buyers. If you’re not sure how or where to start, your local business broker can help you. Find yours here.
In 2025, deals continued the trend of taking between 6-12 months to complete, with some taking longer due to buyers’ cautiousness and the specific complexities of the sale. It is very much a business buyer’s market. To gain the upper hand, research whether businesses like yours are selling on the open market or to private buyers. Take time to understand the economic factors that affect a sale (e.g. interest rates, obtaining finance, regulation) to inform your decisions and optimise the timing of your sale.
From both a vendor and buyer perspective, tax implications are a consideration in every business sale, but they shouldn’t be the primary driver. Focus on increasing the quality of your business to attract a buyer, and you are more likely to receive offers that are higher than any tax you were looking to mitigate.
With more than 80 years’ combined experience between us, there’s not much Business Partnership brokers haven’t seen in the business sales market. You can trust our professionalism, discretion and nationwide connections to get your business sold. Take a look at our case studies for examples of successful deals across a variety of sectors.
Appointing a trusted business broker has a host of benefits. From reaching a realistic sale value and marketing your business through an extended network, to devising detailed deal structures, negotiating terms, and providing calm reassurance.
Get in touch to access our Business Partnership network of local, trusted business brokers to discuss options for selling your business in 2026.
The Autumn Budget has landed – or more accurately, leaked.
Thanks to the OBR accidentally publishing its report ahead of schedule, we had the chance to start reading through it before the Chancellor had even finished clearing her throat. It’s not often government paperwork arrives early…
Jokes aside, the Budget contains a series of subtle but significant shifts that directly affect UK business owners. While headlines will inevitably focus on personal taxes and welfare reform, the real story for SMEs and owner-managed companies is buried in the details.
Below is a business-focused breakdown of what’s changing, why it matters, and what owners, directors, buyers, and sellers should be thinking about next.
The Budget includes a 2-percentage-point increase across all dividend tax bands from April 2026, affecting all owner-managed companies that rely on dividends as a key method of profit extraction. This follows several years of frozen allowances and reduced dividend thresholds, further eroding the traditional “small salary + dividends” model.
What this means for business owners
For business buyers
A major under-the-radar change; National Insurance will now apply to salary-sacrificed pension contributions. For years, salary sacrifice has been one of the most tax-efficient remuneration tools for directors and senior staff. That advantage has now been partially removed.
Implications
Practical next steps
The Budget delivers one of the most significant changes to succession planning in years; capital gains tax relief on disposals to Employee Ownership Trusts will be cut from 100% to 50%. This does not scrap EOTs, but it removes their most powerful incentive to business owners.
Previously, owners selling to an EOT paid 0% CGT. Under the new rules, half of the gain becomes taxable, meaning many sellers will face an effective CGT rate of around 10% (assuming 20% CGT on the taxable portion). For many business owners, particularly those in professional services and owner-managed firms where EOTs surged in popularity, this is a meaningful shift.
Key points
For business advisers and buyers
A relief to many. While no further changes were announced, it’s crucial for owners to remember that BADR is still moving from 14% to 18% in April next year. This remains a significant shift that materially reduces the attractiveness of selling at the 10% rate on the first £1m of lifetime gains (which had already been cut from £10m in 2020).
What this means in practice
Another technical but important change in this Budget is the reduction in Writing-Down Allowances (WDAs) on capital expenditure. The main pool WDA, which applies to most plant and machinery, will fall from 18% to 15%, while the special rate pool for integral features and long-life assets will drop from 6% to 4%. For capital-intensive businesses, this change increases taxable profits by slowing the rate at which investment can be written off.
Manufacturing firms, engineering companies, construction businesses, automotive operators, and fleet-heavy sectors will feel this most acutely. In practice, it lengthens the payback period on new equipment and reduces the near-term tax benefit of investing in plant, machinery, or upgrades. At a time when financing costs are already elevated and margins are under pressure, this shift makes future capital expenditure decisions more complex and, in some cases, less attractive.
Impact on valuations
It’s worth noting that while WDAs are being reduced, certain qualifying investments may continue to benefit from enhanced first-year allowances (e.g. 40% FYA on main-rate assets). These do not offset the broader reduction in writing-down allowances but may offer limited relief for growth-focused or CAPEX-intensive firms making strategic investments. Eligibility will depend heavily on asset type and scheme qualification.
The OBR forecasts that business profits will decline in 2025 before beginning a gradual recovery. More importantly, the real rate of return on capital, a key measure of underlying business profitability, is projected to fall to around 10.75% in 2026, down from 12.5% in 2022. This downward shift reflects a range of structural and cyclical pressures across the economy. Wage growth remains elevated, productivity continues to stagnate, and borrowing conditions are still tight. Inflationary pressures remain embedded in supply chains and operating costs. At the same time, many businesses have delayed investment decisions over the past two years, creating a backlog of capital expenditure that is becoming harder to finance or justify.
Together, these factors reinforce a challenging environment for UK SMEs. Higher costs, slower growth, and weaker investment incentives mean many firms will struggle to expand margins. For sectors with naturally low pricing power, absorbing cost increases without eroding profitability will be particularly difficult.
Impact for owners
Impact for buyers
The OBR has once again downgraded expectations for business investment; hardly surprising given persistent low confidence and high borrowing costs. Businesses in manufacturing, logistics, construction, care, and hospitality may find it harder to justify long-delayed investments in fleets, machinery, and infrastructure.
For many SMEs, this means higher financing costs, extended payback periods, and increased operational risk. Buyers evaluating businesses with ageing assets or significant CAPEX backlogs may apply downward pressure to valuations or seek more conservative deal terms. However, tech-enabled and scale-up SMEs may benefit from targeted support schemes such as enhanced investor reliefs, though access and eligibility remain sector-dependent.
The government’s extended freeze on personal tax thresholds will pull an additional 780,000 people into basic-rate tax, 920,000 into higher-rate, and 4,000 into additional-rate tax by 2029-30. A process economists politely refer to as fiscal drag, where everyone else might simply call “a tax rise by stealth”. This freeze quietly reshapes spending patterns across the SME economy.
Impact on SMEs:
While business rates were not directly changed, the Budget highlighted mounting financial pressure on local authorities with significant increases in SEND (Special Educational Needs and Disabilities) provision costs. Historically, when local authority costs rise and funding does not, business rates follow.
Some industry commentary suggests that future business rate reforms may offer targeted support for smaller high-street, hospitality, or leisure operators, while larger commercial properties could face higher liabilities. However, the Budget provides limited clarity, and local authority funding pressures still point toward upward pressure overall.
Now is the time for business owners to take stock; the changes mentioned reshape how profits are extracted and how businesses fund growth. Forecasts should be updated to reflect higher tax drag and constrained consumer spending, and CAPEX plans should be revisited with more scrutiny than ever.
Anyone considering selling their business should re-examine valuation expectations. Lower profitability forecasts and a higher long-term tax burden will influence buyer appetite and deal structure. Timing also matters, as with BADR rising to 18% next year, sellers should model scenarios to understand how this affects net proceeds. Succession planning deserves a fresh look too; while EOTs remain viable, the removal of the full CGT exemption means the financial calculation has shifted.
This Budget may not have delivered dramatic headline tax changes, but it quietly rewrites the financial environment for UK business owners. Higher extraction taxes, reduced investment incentives, softer profitability forecasts and the highest tax burden in modern UK history all point toward a more challenging operating climate. For owners, the next five years will demand disciplined planning, careful decision-making, and a clear understanding of the financial and strategic options available.
This is exactly where Business Partnership can help. Whether you’re considering selling your business, weighing up an EOT, exploring an MBO, or simply trying to understand how these changes affect your valuation, we can help you model the numbers, assess your options, and decide the best route forward. Our advisors work with owners across every sector of the SME economy, helping them plan their exit and maximise value with confidence.
If you’re thinking about your next move, now is the time to start the conversation. Click here to find your local Business Partnership advisor or contact us here. We’re here to guide you through every step.
This article is provided for general information purposes only and does not constitute financial, tax, legal, or investment advice. Tax rules are subject to change and their application will vary based on individual circumstances. Business owners should seek professional advice tailored to their specific situation before taking any action based on the contents of this article.
UK businesses are getting accustomed to managing unexpected events. We’ve had the curveball of a global pandemic followed by economic instability, and the threat of cyberattacks, financial crime and extreme weather events. And that’s before you add serious staff illness or unexpected death to the mix. When you consider that 50% of businesses experiencing a disaster will fail within the following 12 months, managing a business is not for the faint-hearted!
Unforeseen events and crises can be catastrophic if you do not plan for them. When you own a business, there are lots of events you can’t control. The key to surviving the uncontrollable is to put protections in place before you need them. Whether you manage a local family business or an expanding UK operation, check what protections you should have in place and review them regularly to ensure they meet your needs.
A combination of good planning and relevant insurances will protect your company in times of crisis. In this article, we look at the options to mitigate the impact of unexpected events in both these areas. Let’s start with planning.
Articles of Association set out the rules of running a limited company. Every director must agree to these rules and responsibilities and behave in a way that represents the best interests of the business. They protect a business from disputes and govern its management. Most company directors adopt the standard Articles of Association when setting up and registering their business. Over time and as companies grow, you may need something more specific than a standard cover-all. If your business is growing or seeking new ownership, it might be wise to consult a solicitor and seek professional advice.
Have you ever considered what might happen if a plane were to crash into your building, or a flood caused business operations to shut down? Your company should have a Business Continuity Plan in place to enable key business operations to continue functioning in the event of an incident. Working through the consequences of an incident with your team will help identify vulnerabilities and weak spots. You can then take action to reduce business risk in these areas.
As part of your plan, consider the key members of staff that need to be involved in an incident response. Your plan should set out who those people are, their role, responsibilities and contact details.
Continuity planning is not just for big companies. Every business needs to do some level of contingency planning, for example, what happens if the office boiler breaks down during a cold snap or the latest storm takes the power out from your manufacturing facility? With extreme weather events becoming more frequent, it makes sense to put plans in place.
When it comes to selling, having a robust business continuity plan shows potential buyers you have assessed and planned for potential risks. It builds confidence that your business is a sound and profitable investment.
A shareholder agreement defines the roles and rights of shareholders and sets out how the company is run. A valid shareholder agreement can prevent disputes in the event that a shareholder chooses to leave the business. Shareholders may also refer to it for guidance if a shareholder were to fall ill and be unable to vote in major business decisions, such as a decision to sell.
A buyer may request evidence of insurance during the due diligence phase of a business sale. Having accurate, valid policies in place will present your business in the best light.
Protecting the assets that belong to your business is essential. Your branding, trademarks, imagery, literature, software, patents and copyrights all hold significant financial value. Software developers, manufacturers, product designers, and businesses in technology and the creative industries may benefit from having intellectual property insurance. Cover can protect against loss of income and finance the legal costs of defending your IP rights, if a case arises. In the era of AI, IP insurance has become a vital piece of protection.
Keyman insurance protects your business against financial loss caused by the temporary or permanent loss of a valuable team member. This could be:
Death in service insurance protects your business if an employee dies while on your payroll. Policies usually pay a tax-free lump sum to the deceased’s nominated beneficiary. In larger companies, death in service is a popular employment benefit.
A director’s insurance policy provides cover for individuals with decision-making powers. In the event of an unexpected loss of a director, the insurance payout would enable the remaining directors to hire someone to perform their role, make key decisions, and keep the business running smoothly. This type of cover can be invaluable to protect against the unexpected when selling your business.
According to a UK Government report, just over 4 in 10 businesses reported a cybersecurity breach or attack in the last year. The estimated average financial cost per breach is £1,600 – and that’s purely based on the incidents businesses choose to report. The cost of a major incident can be much higher.
Cyber insurance can protect against financial loss in the event of an online attack, but this shouldn’t be your first line of defence. Staff training could prevent an attack happening in the first place. As part of your planning, consider the financial crime, scam awareness, and online safety knowledge gaps you need to fill.
Planning to protect your company from crisis is a sign of a well-managed business. From machinery breakdowns to the loss of a key employee, investing in planning and insurance can mitigate the impact of unforeseen events. And with so many businesses failing following a catastrophic event, you could see your livelihood disappear all too quickly.
Securing the right level of insurance cover and reviewing your policies regularly to ensure they meet your needs is good practice. A business that has considered information and financial security represents less risk than one that has not. Having robust continuity plans in place gives potential buyers extra peace of mind.
If you have questions about business protection or what insurances you might be asked to evidence during the due diligence phase of your business sale, find your local business broker or contact us here.
Sometimes imagining the worst can be the best thing you can do to protect the value of your business – for the present and a future without you.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.
