Most vendors have one goal: to achieve the most profitable selling price for their business. Planning your exit is crucial to maximising business valuation and profit. But no matter how prepared you are, there will always be factors beyond your control that may affect the sale. External factors can influence buyer choices and the value they perceive in your business.
As you plan your business exit, you need to be aware of, and prepare for, the external factors that may affect its sale. In this blog, we explain the key factors and what to do to prepare for them.
Economic conditions
ONS data shows that economic uncertainty remained the most reported challenge affecting turnover for trading businesses at the start of 2026. UK SMEs have to continually adapt and evolve. Tariffs and import restrictions weigh heavily in certain sectors, impacting global trade and financial markets, leading to low levels of economic growth.
Uncertainty also leads to speculation, which was rife in the run-up to the Autumn Budget, and undoubtedly influenced buyers’ decision-making. Understanding the impact of financial markets and economic conditions on your business can help identify the best time to sell.
Legal factors
A British Chambers of Commerce survey at the end of 2025 found that 63% of firms were concerned about rising tax bills. The business sales market tends to experience peaks and troughs in line with the changing political landscape, especially when new administrations arrive and legislation changes are announced.
We tend to see a rush to complete sales just before legislation comes into effect or before a Budget announcement takes place. The savviest vendors will act before the rate of business asset disposal relief rises to 18% on the first £1m of qualifying lifetime gains from 6th April 2026. Some vendors are choosing to sell early to take advantage of the current lower rate.
Another area where legislative change is impacting business sales is the Employment Rights Act 2025, which comes into force in April 2026. Buyers are demanding evidence of business planning, updated policies and procedures, and budget allocated to cover additional costs. Few buyers want to enter into a purchase agreement with an underprepared vendor.
Obtaining funding
Market uncertainty, economic turmoil and evolving legislation impact business confidence. This in turn influences the payment terms banks and funding institutions are willing to offer buyers.
Financial markets are quick to respond to change and protect themselves against uncertainty. If you’re lucky enough to find a cash buyer, access to finance is unlikely to affect your sale. On the other hand, if an interested buyer intends to finance a high percentage of the purchase through borrowing, the impact could be huge. Bear this in mind when selecting your preferred buyer. You may find you need to be flexible and meet in the middle on terms.
Low market value
Market conditions have a strong influence on the price a buyer is willing to pay. In uncertain times, a buyer may look to protect themselves by undervaluing your business. In reality, they may not believe the value to be representative of the market, they are taking into account potential threats to future success.
As a vendor, you can counteract this by thinking like a buyer as you plan your business exit strategy. Anticipate their key questions and prepare responses. Demonstrate the genuine market value of your business through robust accounting, record-keeping, a strong brand, recurring revenue and healthy cashflow.
Working with an exit consultant can be beneficial. They will help you create your exit plan, identify the areas you can work on to build value, and build an attractive proposition.
Download The Exit Checklist: a free resource to help you plan for a happy and lucrative business exit.
The benefits of a targeted approach to selling your business
Lack of targeting may result in attracting the wrong type of buyer – one who is more concerned about external market conditions than in the future success of a business you have built from scratch.
In our experience, one of the most important factors in a successful sale is how comfortable a vendor feels with a buyer. You need to trust a buyer’s intentions and feel confident in their credibility and suitability as an owner, as well as their financial stability.
Building a shortlist as part of a targeted approach is the best way to identify buyers you would be happy to sell to. Targeting 10 potential buyers is an efficient way to find your ideal buyer. It also makes life easier if you’re working with a broker. They can hit the ground running and work with you to create individual scripts tailored to each buyer on the list.
Plan your business exit with Value Builder
The Value Builder System™ is a great place to start if you’re planning to sell your business. Your Value Builder score determines your readiness to sell and identifies the hidden factors that may decrease business value. Working with a Value Builder Coach, you can determine the price you want to sell for, build a shortlist of buyers, and take the necessary steps to make your business attractive to them.
If building business value with a view to selling is your focus this year, book a discovery call to ask us about Value Builder and find out how our exit consultants can support you.
