How much does it cost to sell a business?

Full Explanation

The cost of selling a business falls into a few buckets, and the right advisers usually pay for themselves in a better price and a cleaner deal. The largest is advisory. Smaller businesses are often sold through a broker; larger or more complex sales use a corporate finance adviser, usually paid a success fee on completion, sometimes with a smaller retainer. Legal fees cover drafting and negotiating the sale and purchase agreement, the disclosure letter and the tax deed. You may also pay for financial or vendor due diligence and a quality of earnings review if you commission your own before going to market, which can protect the price. Finally there is tax on the gain: in the UK this is capital gains tax, potentially reduced by Business Asset Disposal Relief if you qualify, so plan the structure early. Budget for these early and weigh them against the value good advisers add. For where fees fit the process, see [how to find a buyer for your business](/insights/how-to-find-a-buyer-for-your-business) and the [sell your business hub](/sell-your-business).

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