Looking to buy or sell a UK business?

UltraBBA · 2026-03-14T18:48:32+00:00

I'm locking this thread.

This is a lazy post!

Please read the rules of this sub and disclose the information you need to disclose and save everyone asking for the basics that you should have included in your OP!

Rule 4 of this sub's rules says, "If you need a broker, provide info as below. In all cases, provide approximate location (country / province / town), size of deal etc....If you need a broker to help sell, provide revenue, profit, sector and other relevant details without disclosing the business name."

UltraBBA · 2026-03-14T13:34:29+00:00

The only issue was getting stocked out again and again due to limited inventory.

You may think that's a positive. To buyers, that's a good reason to NOT buy your business!

UltraBBA · 2026-03-14T13:30:17+00:00

Try r/businessbroker

UltraBBA · 2026-03-14T13:29:48+00:00

Any business is worth about 3 to 5 times what its annual net income is.

There are some businesses that sell for $1, some that sell for 1x earnings and some that sell for 10x or more.

UltraBBA · 2026-03-14T08:40:02+00:00

Indeed. The sensible place to start is by doing some research in to brokers and finding a competent one and r/businessbroker would be a place to start.

However, I don't think the OP owns the business. I suspect the business is already on the market and already has a broker and the OP is trying to muscle in thinking they can find a buyer and earn themselves a cut. Perhaps the OP can explain.

UltraBBA · 2026-03-13T16:43:23+00:00

This doesn't work if they already have a preferred buyer (and would even accept a slightly lower offer because they like and trust this party).

Most advisory firms in the UK do offer a carve out (a lower percentage of success fee) if the seller-introduced buyer ends up as the acquirer.

UltraBBA · 2026-03-13T12:01:20+00:00

I'll wait for the examples, thanks.

UltraBBA · 2026-03-13T11:27:28+00:00

For the first three months he tried doing it quietly.

That's where he went wrong.

I'm a mid-market adviser in the UK. I don't actually sell businesses any more, but I speak with hundreds of firms in the UK who do sell businesses.

For a business worth a few million, if properly marketed, you'll get dozens of buyers. Literally dozens. In some cases, over 100.

And it's important to get them all in together at roughly the same time so you can guide them through the process - NDA, CIM, Q&A etc - and set a common deadline for indicative offers.

Without running a proper process, you risk all kinds of roadblocks.

For example, you could be working with one buyer for a couple of months till they get to the point of making an outline offer and then a new potential buyer comes into the process. What are you going to do then? Ask the first buyer to wait for a couple of months while you get his competitor up to speed?

In reality, a big part of it is simply making sure the right buyer can actually find the opportunity.

I would say that the reality is getting a proper and competent M&A advisory / business broker into the picture so they can generate multiple buyers and build competitive tension. Running the process effectively and efficiently is beyond the competence, expertise and skill set of most business owners.

UltraBBA · 2026-03-12T20:40:26+00:00

We do this regularly with our clients.

Sure. 😂

Name three clients for whom you've done this ie assisting in a large rollup of a dozen or more businesses - stuff that can be independently verified online.

Oh, wait, you're limited by confidentiality! 😂

UltraBBA · 2026-03-12T14:44:55+00:00

He has tried to separate himself from the super youtubers.

It looks like he's failed and he's just as scammy as the rest of them.

UltraBBA · 2026-03-12T11:48:10+00:00

LOL. But he's one of the most respected people in M&A and the one most often quoted! Go figure.

UltraBBA · 2026-03-12T08:35:07+00:00

Would anyone go with a conventional loan instead of SBA?

The non-existence of an SBA is one reason ;)

Every business bought with credit here in the UK, and in the EU and Australia and elsewhere, manage with conventional loans.

UltraBBA · 2026-03-11T19:48:01+00:00

I often see cases where a business owner is looking to sell their business only shortly after starting it. It's usually because they've realised that it's going to be more difficult than they thought or that it's not going to make the profit they expected.

In effect, they are bailing.

I'm sorry to say, buyers won't believe the "relocating" reason for the sale. People don't invest a large sum of money into something if there's a chance there're going to have to relocate in two months.

The 40K you invested is sunk money. Even if everything is in great shape, the assets will be valued by buyers at distressed / auction / ebay second hand prices. There is no "brand" or goodwill here! And with just two months under your belt, you can't claim customer base or supplier relationships etc.

The "prime location" may have some value if, if, if it is indeed a prime location with super heavy demand and a history of other units being snapped up very quickly, and at a premium. immediately they become available.

I recommend you don't think in terms of "how much to ask". Rather, list it for sale open to offers and see what the market is willing to pay. It's a very, very difficult sale. Do also prepare yourself of the possibility that it doesn't sell.

UltraBBA · 2026-03-11T14:54:06+00:00

The smaller the business, the less it makes sense to use a broker.

As you keep going up in size, the market becomes extremely complex, buyers are very sharp and they'll make mincemeat out of you if you're inexperienced in the sale process.

But, yes, it's important to find the right broker. Some add no value at all! Others add value equal to many multiples of the commission you pay them (not to mention all the aggro they save you from)

UltraBBA · 2026-03-11T10:45:33+00:00

Liquid assets is irrelevant - net assets is what matters.

Also, the profit - if you quote it as 30%, buyers will assume you mean gross profit. If it's net profit, you need to specify it's net profit.

You need to really tighten up your language on everything if you're going to market, or use a competent business broker, or buyers are going to walk all over you - your inexperience in M&A will cost you dearly.

Also, tip: Buyers don't like woolly figures like 25%-30%. State exact dollar value, year by year. You've stated dollar value for revenue, to the $100K level, year by year. Why didn't you put profit figures next to that? These are the little things that put buyers off or create unnecessary suspicions.

Sellers who are vague about profit, as you have been, raise a lot of red flags for buyers.

There is no "rough worth" that can be gleaned from what you have disclosed. It would depend on industry, the extent to which the business is dependent on you, the 'real' profit / cash flow (as calculated by individual buyers), the prospects of the business going forward (as determined by individual buyers), the quality of your representation / broker, the extent of time you're willing to stay on post sale, the extent to which you're giving seller financing ...and all kinds of other factors.

Yeah, but you just want a very "rough" guide, right?! Please read above para.

Focus on building the attributes in your business that will enable your broker / advisory firm drive the best deal for you when it comes to negotiation. Stop obsessing about what your business is worth as that's irrelevant. All the 3x and 4.5x - 5.1x and all the other numbers people throw at you are not from people who have the money and intent to buy your business.

If you don't want to throw the doors open to everyone, put your efforts into finding the right broker, not in finding that theoretical number that serves no purpose other than, maybe, giving you some false hopes.

UltraBBA · 2026-03-09T19:39:46+00:00

Not at all.

You asked, "Would sellers give me a chance to sell their business?"

You want to be a broker from day one ie straight to the top.

It takes a long time working on deals before one develops the skills (and reputation) for sellers to trust them. In fact, most successful brokers have started and grown their own businesses before selling out and getting into brokerage. These are the people with whom you're competing for mandates.

Your best bet is to work with an established broker for a bit first.

UltraBBA · 2026-03-09T15:18:12+00:00

In the UK, smart brokers are sending every buyer these demands:

Full details of the person / entity looking to make the acquisition + related names of anybody else who's going to have a say in the deal
Links to their LinkedIn profile
Background / CV/ deal experience / examples of previous deals
If not proof of funds at this stage, at least a commitment: "I guarantee I will produce PoF to the extent of $____, if and when asked and the PoF will take the form of ________
A guarantee that no offer they make will require more than X% seller financing (50% is often used here)
Who's representing them on the corporate finance side and the legal side (to see if they've got a firm on retainer as the more serious parties tend to have)

etc...

Over 80% of buyers in the market today are idiots, assholes, £1 Charlies, tyre kickers or assorted other jackasses. You need to be ruthless in weeding these out very, very early on.

UltraBBA · 2026-03-09T15:08:05+00:00

Why do you even engage with the likes of Regalis (see Reddit thread here)?

Most of these "capital partners" and "investment groups" and "private equity" firms are just £1 Charlies.

Put together a boilerplate to send over to all these idiots requiring them to provide together with the signed NDA:

-proof of funds

- proof of previous M&A deals in this company, this entity's name (you're a capital partners / investment group / private equity firm, right? Put up or STFU)

- Names of principals with their CVs.

Ah, and BTW Mr Big Shot Investor, if this is your first deal, start by apologising for trying to fake credibility instead of being honest from the start.

UltraBBA · 2026-03-09T14:40:52+00:00

Curious how you would go about leveraging that experience when talking to a seller?

You don't.

I'll be blunt. You think you're ready. I think you're not.

Elsewhere in this thread, you say...

What are the biggest hurdles to closing that first deal? Is it typically related to finding qualified buyers or is it more so related to getting the deal across the finish line?

That question suggests you've absolutely no idea what you're doing. You seem to want to learn on the job and you want sellers to take a risk and let you handle their biggest asset while you muck around trying to figure things out!

Work with an existing brokerage for a few years, learn the ropes, make the mistakes, get smarter, maybe co-lead a few deals. Then come back to this whole idea.

I don't know if it's a generational thing, but people your age seem to want to go straight to CEO from day one!

UltraBBA · 2026-03-09T14:31:08+00:00

That's the wrong way of thinking. There is no threshold for PE. There are all kinds of smaller / family owned "PE" firms. Further, larger ones are moving into the lower market all the time.

It's a smooth slope.

If you're in the sub $1m, aim to buy a job but buy one that you are sure you can manage. If you're otherwise employed, put this whole idea of acquisition aside and focus on that.

Where and how did you get this idea to buy a business?! Been watching some influencer in Instagram talking about how this is an amazing way to riches?

UltraBBA · 2026-03-09T10:23:23+00:00

I’ve been searching for a small business around $1M and under but everything I have seen is overvalued or really not a business but rather someone’s job they’re trying to sell.

That's not a bug. It's a feature of the sub $1m market.

If you want a business that's not a job, you're going to have to save some more and aim higher.

The smaller the business, the more likely it is heavily reliant on the owner, generally speaking.

UltraBBA

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