Buyers of UK SMEs are placing greater emphasis on due diligence than previously. Economic uncertainty, tighter funding conditions and regulatory scrutiny mean acquirers want a clear, evidenced understanding of risk before committing capital. As a result, deals are taking longer, questions are more detailed, and assumptions are being challenged earlier in the process.
To prepare, businesses should treat due diligence as a discipline to prepare for if they are looking to sell their business rather than a last-minute exercise. Be prepared! Financial information must be accurate, consistent and well explained, with clear visibility over revenue quality, margins, working capital and cash flow. Legal and compliance matters—contracts, employment terms, IP ownership, data protection and regulatory obligations—should be up to date and easily accessible. Buyers are also focusing more on operational resilience, customer care, supplier relationships and the strength of the management team.
Practical preparation includes maintaining up to date data and financial documents, documenting key processes, addressing known weaknesses early and being ready to explain performance drivers and risks with confidence.
Businesses that invest time in getting “deal-ready” not only reduce friction and pain during due diligence, but also build credibility with buyers—often leading to smoother negotiations, stronger valuations and a higher likelihood of completing the transaction.
If you want to talk through selling your business contact Rupert Trevelyan of Weybrook Business Brokers for a no obligation discussion https://www.weybrookbusinessbrokers.com/contact-us/