S&W: Conscious uncoupling – how to part ways with your business

When Hollywood pair Gwyneth Paltrow and Chris Martin announced their “conscious uncoupling” back in 2014, the phrase was widely mocked.

But it struck a chord.

The idea that the end of a relationship doesn’t have to be chaotic or damaging, and instead can be handled thoughtfully and fairly, with the future in mind, is one that translates well to the world of business exits.

For many business owners, selling up is not just a financial transaction. It’s the end point of years – sometimes decades – of hard work, risk and personal investment.

And, as Chris Hird, corporate finance director at accountancy and advisory firm S&W, points out, it is something too many owners start thinking about far too late.

He says: “It often comes as a surprise to people just how much work and preparation goes into selling a business if you want to maximise value.”

With that lack of knowledge in mind, national operator S&W – which has offices in Newcastle’s Collingwood Street and Queens Lane – published a business exit guide late last year.

Acting as a step-by-step guide, it provides owners with insight into everything they should be thinking about before they put their company on the market.

Chris says: “The key thing people need to consider is planning. If you want the best outcome, you really need to be thinking three to five years ahead.

“That gives you time to consider tax implications, to make early moves to maximise allowances and to shape the business into something that’s attractive to buyers.”

Unsurprisingly, tax is a major consideration in any exit strategy.

Business asset disposal relief currently sits at 14 per cent, rising to 18 per cent on the first £1 million of lifetime gains from April 6, 2026.

Just as important, though, is getting the business itself ready.

Chris says: “If you want your business to be as profitable as possible, you need to remove unnecessary expenditure and get your house in order ahead of due diligence.

“There are lots of things a buyer is going to look at, and a lot of value in a deal can be lost during that process.

“If there’s a hidden liability, they’ll adjust the price to reflect that.

“Contracts need to be locked in, staffing arrangements need to be clear and any potential issues must be dealt with early.

“That’s how you protect value.”

The S&W business exit guide also addresses a reality many owner-managers are reluctant to face: that they may be too entwined with their own business to walk away.

Chris says: “In reality, if someone wants to retire at 65, they should be making their exit plan at 60, especially where they are an owner-manager holding all the knowledge in their head and managing all the key relationships.

“Buyers are wary of that.”

Chris recommends building a strong senior management team well ahead of any sale.

He says: “It’s a critical step. Without it, as far as the buyer is concerned, that transition away from the owner becomes riskier – and risk depresses value.

“You need to start uncoupling yourself from the business long before you actually exit.”

That is where Chris and the corporate finance team at S&W come in.

They support clients buying and selling businesses, and raising funds to develop them, guiding them through each stage of what can be an emotional and complex process.

He says: “We’ll talk to them about how best to sell, what we think a realistic value for their business is and who might buy it.

“We identify potential buyers, check their appetite and resources, and help structure the sale in the most tax-efficient way.”

From there, the team collates offers and helps the seller decide which one best suits their circumstances.

Chris says: “It’s not always about the headline number.

“If someone is 75, an offer with a five-year deferral probably isn’t right for them. But if a seller is 40 and an offer involves staying on for five years in return for a much better financial outcome, that might be worth serious consideration.”

The S&W corporate finance team supports negotiations, drafts heads of terms and works alongside legal teams through due diligence, helping sellers field questions and deal with issues as they arise.

While based in Newcastle, the team has no geographical limits.

It has helped with recent deals completed in East Anglia and Birmingham, with clients spanning Scotland down to the M62 cities.

Business exits take many forms, from management buyouts, buy-ins, private equity backing and passing a business to the next generation, with S&W’s team there to support every kind.

Chris adds: “Each route has different dynamics, but it’s ultimately about the same thing: moving a business from one owner to another in the right way.

“Sometimes, it can be about handing on a legacy, and other times it can be about getting the best possible deal and moving on.

“Whatever the aim, our job is to help people achieve it and to make sure that, when the time comes to part ways with their business, they do so consciously, confidently and on their own terms.”

 

S&W

www.swgroup.com

LinkedIn: S&W Group