📝 Six Business Sales Facts You Need to Know

Thinking of selling your business? Whether you are just starting to explore the idea or are ready to begin the process, these six business sale facts will help you understand what buyers are really looking for when assessing a business opportunity.

Business Sale Facts Every Seller Should Understand

1. Buyers Will Not Pay for Potential Alone

A business based purely on an idea or future potential, without a proven revenue stream, carries little value in the eyes of serious buyers.

They are looking for a functioning, profitable operation, not just a vision. Value is tied to what the business is doing today, not what it might become.

2. Buyers Focus on Profit, Not Revenue

The most important number in a business sale is profit.

Compare these two examples:

• Business A: £30,000 monthly revenue, £25,000 expenses = £5,000 profit

• Business B: £10,000 monthly revenue, £1,000 expenses = £9,000 profit

Even though Business A brings in more revenue, Business B is nearly twice as profitable. Buyers focus on what the business earns, not just what it turns over.

3. Buyers Expect Verifiable Financial Claims

Any financial claim must be backed up with clear evidence. If you state your business earns income from a certain source, be ready to show invoices, contracts, and matching deposits on bank statements.

The more transparent and well-documented your finances are, the smoother the due diligence process will be.

4. Recent and Future Performance Matters Most

Buyers typically focus on the most recent 12 to 24 months of performance. Older trading history is less relevant unless it clearly demonstrates long-term growth or recovery.

If the business is declining, most buyers will not be interested unless there is a realistic turnaround already underway.

5. Honesty Builds Stronger Deals

Buyers do not expect perfection, but they do expect honesty. If issues are hidden or details are exaggerated, it creates distrust and can lead to the deal falling apart during due diligence.

Being upfront about challenges and strengths earns respect and sets a strong foundation for negotiations.

6. Be Prepared to Answer Questions

Serious buyers will ask many questions to understand the business thoroughly and to identify any red flags. This is not a sign of doubt but a normal part of the buying process.

Even inexperienced buyers may have strong financial backing, so treat every enquiry with professionalism. Clear answers show that the business is well-run and that you are a trustworthy seller.

📞 Ready to Take the Next Step?

If you are thinking about selling and want to know what your business is worth, the team at Novus Business Brokers is here to help.

Call us on 0203 883 1397 Email info@novusbusinessbrokers.com

Or click below to request your free, confidential valuation today.

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