A contribution from Tom Murray, Partner at Friel Stafford, to the ifac Family Business Report 2026
A trade sale isn’t just a transaction. It’s the moment you convert years, sometimes decades, of graft into capital. For many families the business is their pension. It’s the asset that underpins retirement plans, supports the next chapter, and in some cases helps the wider family.
Strategic buyers typically pay the strongest prices, but they are selective and disciplined. They look for businesses that are well run, financially clear, and capable of performing without over-reliance on the founder. Owners who prepare early by strengthening management, clarifying earnings, reducing risk, and demonstrating a credible growth story tend to achieve better outcomes and retain more control through the process.
Declutter the risk
That’s precisely why preparation matters so much. You wouldn’t sell your home without fixing the cracks, clearing the clutter, and giving it a coat of paint. Yet I regularly see owners bring business to market ‘as is’, and hope buyers will see the potential. Buyers do see potential, but they also see risk, and they price for it.
Preparation for a trade sale is about reducing uncertainty and making it easy for someone else to step in and run what you’ve built. The first place buyers look is the numbers. Clean, well-presented accounts that clearly demonstrate sustainable earnings build confidence. If profits are muddied by personal expenses, one-off costs, or unclear adjustments, buyers will either discount the price or spend months picking through the detail.
Strengthen the Management Team
Next comes concentration risk. If half your turnover comes from one customer, or if every key decision runs through you, that will make a buyer uneasy. Strengthening the management team, documenting processes, and broadening the customer base takes time but it directly affects what someone is prepared to pay.
Contracts, leases, intellectual property, tax structure – none of it is glamorous, but all of it matters. Small fixable issues left unattended have a habit of surfacing late in a process. Early preparation avoids that uncomfortable renegotiation when you are already mentally half-retired.
Highlight the potential
Most importantly, preparation allows you to tell a credible growth story. Buyers don’t just purchase last year’s profits. They buy future earnings. If you can show a clear pathway supported by data and realistic forecasts, you move the conversation from ‘What could go wrong?’ to ‘What could this become?’
And here’s the key point: this isn’t a six-week tidyup. Meaningful improvements take 12 to 24 months and starting early gives you control. It allows you to strengthen margins, tidy the balance sheet, reduce debt, and gradually reduce reliance on yourself.
The commercial imperative
Succession and voluntary liquidation will always have their place. But if a trade sale is even a possibility it should be treated as a plan, not a fallback. The difference between a business that sells and one that sells well often comes down to the work done in advance.
And when the business represents a large share of your family’s wealth, it’s simply too important to leave to chance.
If this article raises questions for you and your business, please reach out to our Team at Friel Stafford for advice and assistance.