Tips for Selling an SME Business
What Every SME Owner Should Know Before Selling Their Company?
Selling a company is a major milestone for any SME owner. Whether you are looking to retire, pivot to a new venture, or unlock the value you have built over the years, a well-prepared sale process can significantly increase your return and avoid costly pitfalls. Here’s what every SME owner should know before selling their business.
1. Understand the True Value of Your Business
a. Most SME owners have a rough estimate of what their company is worth but that is not enough. A formal business valuation considers:
Earnings before interest, tax, depreciation, and amortisation (EBITDA)
Recurring Revenue or One-Off Sales
Client Concentration and Contractual Stability
Market Comparable and Industry Multipliers
b. Tip: Working with a corporate finance advisor to get a fair and defendable valuation. This builds buyer confidence and strengthens your negotiation position.
2. Get Your Financials in Order
a. Buyers will study your numbers. It is significant to ensure that your accounts are:
Audited or professionally reviewed
Consistent and transparent over the past 3 to 5 years
Supported by clear documentation of income, expenses, and liabilities
b. Well-organized financials reduce due diligence delays and improve your credibility.
c. Tip: Finding a qualified accountant with experience in SME transactions to help clean up your books, ensure compliance, and present your financials in a buyer-ready format.
3. Identify Deal-Ready Structures
a. Should you sell shares or assets? What are the tax implications?
Share Sale: Often simpler and preferred by sellers for tax reasons
Asset Sale: May be safer for buyers but more complex for tax and liabilities
b. Tip: Engaging an Accredited Tax Advisor (ATA) in the earlier stage to optimise your sale structure and avoid unnecessary tax leakages.
4. Clean Up Legal and Operational Risks
a. Issues like shareholder disputes, unclear employment contracts, or unresolved legal matters can disrupt a deal. The following actions are required before selling:
Review shareholder agreements and company constitution
Resolve outstanding legal claims
Ensure compliance with employment laws and data protection regulations
5. Prepare a Succession or Handover Plan
a. Buyers want continuity, so a clear transition plan should include:
Key staff retention
Operational manuals or SOPs
Handover timeline
6. Choose the Right Advisory Team
a. A successful sale depends on having the right support. Your deal team should include:
Corporate Finance Advisor: To structure and negotiate the deal.
Tax Specialist: To mitigate tax exposure.
Lawyer: To draft and review contracts or agreements.
Why Morrison Is the Right Corporate Finance Partner for Your M&A Journey?
1. Full-Spectrum Support from One Trusted Advisor
a. We do not merely advise on deals; we will also build them. With deep roots in corporate compliance, accounting, secretarial and tax services, we understand your business inside-out. This unique foundation allows us to deliver M&A solutions that are:
Compliant by design
Tax-efficient
Structurally sound for long-term value
b. Whether you are buying, selling, or restructuring, we ensure that your deal is built on solid ground.
2. Trusted by Legal Professionals: Litigation & Liquidation Support
a. Over the years, we have worked hand-in-hand with leading law firms on complex litigation and insolvency matters. This experience makes us uniquely qualified to:
Assist in corporate restructuring, liquidation, and dispute-related transactions
Prepare supporting documents for legal proceedings
Provide financial expert input for contentious matters
b. We maintain NDAs, templates of term sheets, and dealing documents that have been vetted by reputable lawyers, so you do not need to start from scratch.
3. Ready-to-Deploy Deal Infrastructure
a. We bring structure and speed to every transaction by offering:
Ready-to-use templates: NDAs, Term Sheets, Definitive Transaction Agreements
Pre-drafted documentation aligned with Singapore legal standards
Access to a legal network for fast legal review and sign-off
b. This means less time wasted on admin, and more commitment to deal strategy.
4. Financial Modelling, Valuation & Pitch Decks
a. Rather than merely connecting you to the potential buyers, we will help you to present your value clearly and credibly.
b. Our team delivers:
Custom-built financial models and forecast analysis
Independent business valuations using industry-standard methodologies
Investor-ready pitch decks that highlight key metrics and growth potential
c. Such deliverables will position your business as more attractive to the interested buyers because we craft a compelling narrative that highlights its true value.
Why Clients Trust Us as Their Corporate Finance Advisor?
We bundle M&A services with tax planning, compliance, and financial reporting.
We understand the regulatory landscape in Singapore.
We have direct access to legal and financial partners for saving time and money.
We speak the language of business owners.
Whether you are exiting, acquiring, or restructuring, we offer one cohesive advisory solution so that you do not have to coordinate between accountants, lawyers, and consultants.
Ready to Sell Your Company? Let’s Maximise Its Value
Whether you’re exploring your options or preparing for a formal sale, our team can guide you through every step.
Contact Morrison Consultants today to schedule an initial meeting for developing your business exit strategy.