How corporate finance houses and financial planners work together for a successful outcome for both business and owner
The decision to sell a company ahead of retirement is one of the most significant financial events of an owner’s life. Retirement is itself a big enough life event, but selling a company that you’ve poured your heart and soul into over the years is a big deal – both financially and emotionally. Yet this transition can be treated as a transaction rather than a strategic, multi-layered process that helps the owner prepare for next stage of their lives.
So, it makes sense to take a holistic approach and prepare carefully and over time. Indeed, the most successful business sales and transitions into retirement are not made overnight. They are the result of forward thinking, careful preparation, and expert guidance.
Buyers are becoming more discerning, and companies that are not structurally or financially ready may struggle to gain traction in this increasingly competitive market. Businesses need to be high-quality, profitable, resilient, and well-positioned for future growth.
While much of the focus naturally lands on financial performance and attracting the right buyer, another critical, but often overlooked, piece of the puzzle is personal cashflow planning, with consideration given to individual objectives and goals in the years that follow.
The evolving M&A landscape
The benefits of good preparation become obvious when we look at the state of the M&A market. Buyer appetite remains strong. In the UK, more than $10 billion worth of bids were made in a single week in June, and there were 30 deals valued above £100 million between January and June 2025, outpacing the 26 recorded during the same period last year.
However, beneath these headline figures lies a more complex picture. Although the amounts changing hands are strong, deal volumes were down in Q1 2025 and UK private equity exits hit a two-year low.
Buyers are becoming more discerning, and companies that are not structurally or financially ready may struggle to gain traction in this increasingly competitive market. Businesses need to be high-quality, profitable, resilient, and well-positioned for future growth.
What makes a business attractive to buyers?
So, just what makes a business attractive to a buyer? According to Harry Knight, Corporate Finance Director at leading corporate finance house, Corbett Keeling, “Serious interest often comes down to three factors: financial strength, operational independence, and future potential.”
He goes on to advise, “When it comes to financial performance, buyers want to see consistent revenue growth, healthy profit margins, and well-documented financials that stand up to scrutiny. Long-term contracts, recurring income, and predictable cash flows help to reduce perceived risk and can significantly increase valuation.”
“Equally important is whether the business can function without its current owner. A strong management team, documented processes, and continuity across customer and supplier relationships all signal that the business can operate and grow independently. If everything hinges on the founder, the buyer is taking on additional risk, which often results in a lower price or more onerous terms.”
“Finally, the business must be able to show that it has a competitive edge and a credible path for growth. A company in a stagnant sector, even if currently profitable, may be viewed as less attractive than one in an emerging or expanding market. Buyers are drawn to companies that can scale, have distinctive branding or intellectual property, and have shown resilience through economic cycles.”
Optimal structuring
Even if a company shows potential, buyers also look at how easy it would be to buy and operate. Complex shareholder arrangements, disorganised records, or poorly drafted legal agreements are off-putting and cause friction.
Shareholder alignment is a critical factor. If co-owners aren’t on the same page, it can scuttle a deal before it gets off the ground. Equally, buyers are wary of businesses that require constant reinvestment to sustain operations.
These issues are often best addressed with the support of a corporate finance adviser. Their job is not simply to run a sales process, but to help shape a business into a marketable asset.
But this expert support only covers half the story…
Personal concerns
While M&A specialists focus on preparing the business for exit, owners also need to prepare themselves. The sale of a business is not only a liquidity event; it’s a pivot point in personal financial planning. It is far too easy for business owners to get caught up in the sale itself and not give enough thought to what happens after.
Initium, another leading corporate finance company says that key to preparing for sale is clarifying objectives on a personal level as well as a financial one.
Business owners are just individuals like the rest of us who need to support themselves and any dependents, think about gifting, and optimise their affairs from a tax standpoint too.
Liz Jackson, Sales & Marketing Director at Initium says, “We advise clients to start with the end in mind: how do you want deal day to feel? Aligning shareholder expectations early – who wants to exit quickly and who wishes to stay – helps define the type of buyer you seek.”
“Many of our clients don’t simply accept the highest bid; they choose the best fit – buyers whose values align with theirs. The key is to run a process that gives you the power to decide who you ultimately sell to. Creating a scorecard with your top priorities and rating each potential buyer against them ensures a clear, structured decision.”
“As we say: everyone gets somewhere in life, but only a few get there on purpose. Selling a business should be intentional and proactive, rewarding you fairly for the years of dedication, effort, and sacrifice invested in building it.”
Personal financial planning before a company sale
Financial planning and cashflow modelling is critical. Creating a detailed and holistic financial plan to manage income, expenses and savings comes off the back of an in-depth review of income and expenditure. The idea is to ensure financial health for the business owner, thus enabling solid financial management and helping you to achieve financial goals.
Without clear modelling and scenario planning, owners risk mismanaging assets, running into tax complications, or falling short of long-term objectives.
For business owners transitioning into life post-sale, cashflow modelling is the equivalent of retirement planning for employed individuals. It’s about optimising the position with the right tax wrappers and investment solutions at the right time, drawing down assets in an efficient and sustainable way.
Effective cashflow planning also includes ‘stress-testing’ the plan by considering different scenarios, such as early death, outliving life expectancy, or unexpected costs. Done properly, it transforms a one-off event into a lifelong strategy, brings the future to the present, and even allows a comparison of the financial position pre and post financial planning recommendations.
The most successful business sales and transitions into retirement are not made overnight. They are the result of forward thinking, careful preparation, and expert guidance.
Bringing together M&A specialists and financial planners
Bringing M&A specialists and financial planners together early in the process therefore gives a business owner a 360-degree view and unlocks substantial value.
The corporate finance house focuses on optimising the business for sale. The financial adviser focuses on preparing the individual or family for life after it. Together, they provide a holistic strategy that aligns personal goals with business outcomes to maximise the business’s value and lay the groundwork for personal financial freedom and legacy.
Please note:
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate cashflow planning.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, or Will writing.
If this article has raised questions for you, feel free to get in touch!
Written by Simon Stygall, an Independent Financial Adviser at Flying Colours