This is a guest post by Sarah Chilcott. Sarah is the former Managing Director at the national Planning Portal and now acts as an advisor at HGKC to a range of organisations on growth, leadership and exit planning, as well as providing specialist advice on digital planning, data and proptech.
For small business owners in the UK, the idea of selling their business can feel like a distant ambition, especially during times of economic uncertainty. With inflation pressures, changing consumer habits, labour shortages, and market volatility continuing to impact daily operations, it’s no wonder many entrepreneurs are focused more on surviving than selling.
But here’s the reality: uncertainty doesn’t mean you shouldn’t plan for a sale – if anything, it means you should plan more carefully than ever. And that begins with building a resilient, attractive business today that can hold its value and appeal to potential buyers tomorrow.
The current climate: Why now is a challenging time to sell
In recent years, UK business owners have had to navigate a perfect storm of pressures. From the aftershocks of Brexit and the pandemic to energy cost increases and wage inflation, many small businesses are stretched thin. Add in rising employment costs, inflation and interest rates that remain stubbornly slow to falling, and tightening credit, and both buyers and sellers have become more cautious.
These conditions have affected the mergers and acquisitions (M&A) landscape across all sectors. Some potential buyers are delaying decisions, investors are demanding more robust data and due diligence, and valuations have become more conservative. At the same time, businesses that are overly dependent on their owner, lack scalable systems, or haven’t diversified revenue streams are often being passed over altogether.
So yes – selling in uncertain times is harder. But that doesn’t mean it’s impossible.
Why now is the time to build, not pause
If the current environment has taught business owners anything, it’s the importance of being prepared for anything, including an unplanned sale. Ill health, burnout, personal circumstances, or sudden market shifts can all push business owners to exit earlier than planned.
The most successful sales happen when business owners are proactive, not reactive. That means preparing early, taking steps to reduce risk, and building an organisation that can withstand shocks and still operate independently of its founder.
In uncertain times, buyers look for certainty – and that means clarity in financials, strong systems, a capable team, and evidence of resilience. These aren’t things you can rush at the last minute. They require consistent attention and strategic thinking over time.
The top challenges business owners face today
Let’s take a closer look at some of the key challenges small businesses are grappling with as they consider a future sale:
1. Valuation Gaps
Buyers are more selective and value consistency and sustainability over high short-term profits. If a business’s performance is volatile or dependent on a few key customers, buyers may apply significant discounts – or walk away entirely.
2. Owner Dependency
Too many businesses still rely heavily on their founders for relationships, decision-making and day-to-day operations. This limits transferability and makes buyers nervous about continuity post-sale.
3. Inadequate Systems and Documentation
Manual processes, lack of documented procedures, and outdated tech can hinder scalability and increase perceived risk. Buyers today want efficient, modern systems that support growth and are easy to integrate.
4. Staffing and Leadership Gaps
With recruitment and retention still difficult across many sectors, buyers place a premium on companies with stable, experienced teams and a clear leadership structure. A capable second-tier management team adds significant value.
5. Poor Exit Planning
Perhaps the biggest challenge is simply a lack of planning. Many business owners underestimate how long it takes to prepare for sale, both operationally and emotionally. Selling a business isn’t just a transaction; it’s a transition.
The role of an independent advisor
In uncertain times, one of the smartest moves a business owner can make is to seek independent advice early on in the journey. A qualified advisor brings objectivity, experience, and a strategic lens that can be hard to achieve internally.
Here’s what an independent advisor can offer:
- Valuation clarity – Helping owners understand what their business is really worth and what drives that value in their sector.
- Strategic planning – Identifying the most impactful changes to make now to increase sale-ability and value over time.
- Buyer insight – Offering a perspective on what different types of buyers (trade, private equity, family offices) are looking for, and how to position accordingly.
- Preparation for due diligence – Ensuring all financial, operational, and legal documentation is in order, to avoid surprises that could derail a deal.
- Exit timing and structure – Advising on the optimal timing and structuring of a sale, including phased exits or earn-outs where appropriate.
Working with an advisor doesn’t just improve your sale price, it can also reduce stress and help you exit on your own terms. The earlier they’re brought in, the more value they can add.
Final Thoughts: Build for Tomorrow, Even When Today Feels Uncertain
Selling a business in a turbulent environment is undoubtedly challenging. But businesses that are well-run, strategically prepared, and led by forward-thinking owners still attract buyers, and often command strong valuations.
The key is to stop viewing uncertainty as a reason to delay and start seeing it as a reason to prepare. Building to sell means building a stronger, more resilient business – one that can weather storms and stand out in any market.
With the right mindset, a focus on fundamentals, and trusted advice from experienced professionals, small business owners in the UK can continue to create value and position themselves for a successful exit, whatever the future holds.
