Selling a business as part of your retirement strategy is a significant and deeply personal decision. It marks the transition from building a business to building a life after business. This is not just a financial move, but an emotional one too. It is about ensuring that you are stepping away at the right time, in the right way, and with the right plans in place.
Whether you are ready to spend more time with family, pursue hobbies, or simply take a well-earned rest, it is essential to prepare thoroughly. That preparation includes understanding the impact of tax changes, succession planning, and deciding how involved you want to remain, if at all, after the sale.
Retirement Planning and Succession Readiness
Planning for retirement goes hand in hand with planning for your business sale. Selling without a clear retirement strategy can lead to uncertainty and regret, while a structured plan brings confidence.
One of the key parts of this planning is succession. You should consider who will take over and how the business will run after you have stepped back. Whether it is a management team, an outside buyer, or a family member, preparing the business for life without you is essential. A business that can operate smoothly without its founder is more attractive to buyers and will likely command a stronger price.
By making succession part of your retirement conversation early on, you improve the likelihood of a smoother transaction and a more secure retirement. It also provides peace of mind to staff, customers, and suppliers, who often worry about changes in leadership.
Financial and Emotional Considerations
Selling a business for retirement is not just about money. While the financial reward is central, emotional factors are often just as important. Many business owners have spent decades building their company, and walking away can feel like leaving behind part of your identity.
From a financial perspective, many sellers have a target figure in mind that is shaped by their retirement plans. This may be based on a desired lifestyle, income goals, or the need to provide for family. In today’s interest rate environment, having a significant lump sum from the sale can allow you to generate income through yield-bearing investments without taking excessive risk.
Emotionally, however, some business owners struggle with the concept of retirement. They may feel uncertain about how they will spend their time, or worry about being disconnected from a business that has defined much of their life. It is important to be honest with yourself about these feelings. Recognising them early can help you make better decisions, whether that involves stepping away completely or retaining some involvement, for example, in a consulting role.
Deciding When to Sell
The decision of when to sell is influenced by both business conditions and personal circumstances. Some owners may be tempted to delay retirement if the business is in a period of strong growth or if the market is favourable. This may lead to higher valuations, but also carries the risk of missing the right moment.
On the other hand, external factors might push you toward a sale sooner than expected. These could include increased competition, government policy changes, or rising operational costs. In some cases, the appreciation of your property assets might mean the value of your business has increased, even if turnover has remained stable. Timing your exit when your assets and market conditions align can result in a more lucrative outcome.
For those motivated by lifestyle change, the ideal time to sell may be less about the numbers and more about personal readiness. If you find yourself dreaming of a slower pace or a new chapter, that may be a strong signal that the time has come.
Read: How Does Emotion Impact on Selling Your Business?
Selling a Portion vs Selling the Whole Business
In some circumstances, owners consider selling only a portion of the business and retaining a minority share. However, if your primary motivation is retirement, a full sale is often the preferred option. Selling the entire business simplifies your affairs and provides a cleaner financial break.
A complete share sale also helps you avoid future involvement or liability. It gives you clarity and control over your retirement income, making it easier to plan with certainty.
Tax Implications and the Importance of Timing
A critical part of selling a business for retirement involves understanding the tax position and anticipating any changes that could affect your outcome. Business owners must be aware that tax policy is not fixed and can change over time, which in turn can impact the proceeds from a business sale.
One important example is the change to Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief. From April 2026, the rate is set to increase to 18%. This change is particularly relevant for business owners who had planned to rely on the relief as part of their exit strategy. Acting before these changes come into effect could make a significant difference in the net proceeds you retain from your business sale.
Of course, tax considerations are not the only driver for timing a sale. However, ignoring them entirely can result in a missed opportunity to maximise your retirement income. Working with the right advisers can help ensure you are selling at a time that aligns with your financial goals.
The Process of Selling Your Business
The process of selling your business for retirement may well start with discussion with your family and of course, with your financial adviser. The decision to sell your business will be in line with your personal financial strategy and depending on your chosen timescale for retirement, will influence the start of your business sale process.
It is essential to bear in mind that a business sale takes time and effort and this will need to be planned into your timetable. Every business and sector is different but the process includes: appraisal, due diligence, ensuring that your business is transferable, buyer research, negotiation, hammering out the right deal structure and finalising the post-deal transition.
A key issue to be aware of when selling your business is that many deals involve deferred payments or earn-outs. If you are using deferred consideration to receive regular sums following the sale, or agreed earn-outs contingent on future business performance, it is important to understand the personal financial implications involved.
Staying Involved After the Sale
Retirement does not always mean walking away entirely. Many former business owners find that stepping into a consultancy role allows them to stay connected to the business while enjoying more freedom. This arrangement can also be highly beneficial to the buyer, especially if they are a first-time entrepreneur who would value your guidance.
Consultancy roles can also be financially rewarding. Retaining a role as an adviser can result in additional income and help support earn-out conditions, where part of your payment is linked to the business’s future performance.
If you are considering this route, think carefully about the kind of support you want to offer, the amount of time you are willing to commit, and how this fits with your vision of retirement.
Why Now and Why Altius Corporate Finance
Once you start to think about retirement it is the right time to start planning and exploring your options. Delaying the process could expose you to future tax changes, shifting market conditions, or other uncertainties that may impact your eventual return.
At Altius Corporate Finance, we support business owners who are ready to make that move. We understand the unique considerations involved in selling a business for retirement. Our role is to guide you through the process with discretion, clarity, and care.
We are part of the Altius Group, one of the UK’s top five M&A business sales advisory firms, according to Experian. Our expertise lies in structuring deals that reflect the full value of your business, while aligning with your personal goals. Whether you are seeking an immediate exit or a phased transition, we have the experience to support you every step of the way.
Selling your business for retirement is more than a transaction. It is a life event that requires thoughtful planning and personal reflection. By getting ahead of tax changes, putting a strong succession plan in place, and exploring your options with expert advisers, you can create a retirement on your terms.
At Altius Corporate Finance, we help business owners navigate this important chapter with care, discretion, and professionalism. If you are considering a sale, now is the time to start the conversation.
Speak to us in complete confidence to begin planning your retirement the right way.
