What Are My Options for Selling Business Assets When I Retire?

If you’re beginning to think about retirement and are looking forward to stepping away from the day-to-day demands of running a business, one crucial challenge still awaits. You need to plan how and when to sell the business’s assets to secure maximum value and achieve a smooth, stress-free exit.

There are various asset disposal options available upon retirement. The right choice for you will depend on the business’s structure, the type of assets you hold and your timeline. Here we explain your options and the steps you can take to generate the best possible return without any unnecessary complications.

Understanding your business assets

Before exploring your retirement asset-disposal options, it’s worth taking a minute to consider the assets you or your business owns (depending on its legal structure). 

Business assets can include:

• Tangible (physical) assets - Things you can see and touch, like property, vehicles, machinery, equipment and stock.

• Intangible assets - Assets you cannot physically touch but still have value, such as customer lists, intellectual property, trademarks, websites and patents.

• Financial assets - Examples include investments, bank account balances, money owed by customers and equity stakes in other companies. 

While physical assets are often relatively straightforward to value and sell, intangible assets can be more complex to monetise. However, they can represent a substantial portion of a business’s value, so you need to have a clear strategy for them. Financial assets, by contrast, are usually highly liquid, making them a reliable source of funds to support your exit planning.

Selling the business as a going concern 

Rather than selling the assets separately when you retire, the most lucrative way to exit is often to sell the business as a going concern. This approach captures the value of its ongoing earning potential, customer relationships and goodwill, rather than treating it as merely a sum of its parts. That usually leads to a higher sale price.

However, selling the business as a going concern is not always possible. You may struggle to find a suitable buyer, or the business may rely too heavily on your experience and expertise to continue without you. Equally, the idea of someone else taking the business forward after you retire may not appeal to you. In that case, the next step is to explore your asset disposal options.

Selling assets when retiring: main options for sole traders and general partnerships

If your business is unincorporated (not an Ltd), selling its assets is usually a more straightforward process. That’s because the assets are owned by you personally and not by the company. Your options include:

Selling the assets to a connected party

This is a good option if you plan to retire but want to pass on assets to someone you know, such as a family member or business partner. Once you agree on a price, you can transfer ownership of the asset without lengthy sales negotiations. Getting a professional asset valuation will ensure you receive a fair price. 

Although this process can lead to a quick and stress-free sale, it may not maximise your final return. Mixing family or personal relationships with financial decisions can also lead to disagreements and complications.  

Selling the assets on the open market

Another asset disposal option on retirement is to sell business assets on the open market. A common way to do that is by selling the assets at auction. Specialist auctions give you access to a wide range of buyers, including investors, competitors and other business owners, who are looking to expand or replace existing equipment.

Selling at auction allows you to convert the assets into cash in a defined timeframe without the need for prolonged negotiations. The competitive bidding process can push prices higher than a private sale, and you can set a reserve price so the assets only sell for a price you’re happy with.

Selling assets when retiring: main options for limited companies

If you run a limited company that you cannot sell as a going concern, your options are slightly different. 

Enter a Members’ Voluntary Liquidation (MVL)

Rather than just shutting up shop and selling the assets, if you run a limited company, you also need to close the company properly. If the company has assets worth over £25,000, the most tax-efficient way to do that is usually by entering a Members’ Voluntary Liquidation (MVL).

In an MVL, you must appoint an Insolvency Practitioner to close the company on your behalf. They will sell the business’s assets, usually at auction, and pay you the proceeds before formally dissolving the company. The downside of this approach is that you must pay the Insolvency Practitioner’s fee, which will eat into your returns 

Sell the assets yourself and close the business via Strike Off

The other way to sell assets when retiring from a limited company is to use the Company Strike Off procedure. This is usually the most cost-effective option when the company's assets are worth less than £25,000. 

In this case, you sell the assets and close the company yourself, avoiding the fees of a formal liquidation. You can sell the assets at auction or via a private sale before applying to close the business. A specialist auctioneer will value and list the assets on your behalf, and you will receive the proceeds. 

Selling assets when retiring: other options

Depending on the nature of the assets, there may be other options the owners of sole traders, general partnerships and limited companies can consider, including:

• A phased disposal of assets - There’s nothing to say you have to dispose of all the assets immediately. You could retain them and sell them later when market conditions improve, or use assets, such as property, to generate a retirement income. 

• Sell assets as part of a partial business sale - You may not want or be able to sell the business as a going concern, but there may be potential to bundle assets together, such as customer lists, contracts and intellectual property, to enhance their value.

• Arrange a lease-to-buy or hire purchase deal - If a buyer cannot afford an upfront purchase, you could consider a lease-to-buy or hire purchase deal. That would provide an ongoing income and may generate a higher overall return.  

How to sell assets when retiring  

If you are planning to sell business assets before retirement, taking these steps will help you maximise your return.

• Time the sale carefully - Think about your retirement timeline, as selling assets is rarely an overnight process. You should decide what assets you want to sell and start the process at least six to 12 months before your retirement date. Also consider factors such as market demand and the tax implications.

• Get assets professionally valued - Asset auctioneers provide professional valuations that set realistic expectations for the sale without underselling key assets.

• Choose an appropriate sales method - Auctions are the most common way of selling business assets when retiring. However, other methods, such as negotiated sales, tender sales or a brokerage service, may be more appropriate depending on the type of asset, the size of the sale, and the level of confidentiality or control you require.

• Invest in maintenance and repairs - Physical assets tend to fetch a higher price when they are in good condition. That can be a balancing act, as you don’t want to spend more on repairs than the increase in value they are likely to deliver. A professional valuer will be able to advise you. 

• Find the right auctioneer - Look for an auctioneer with experience in your sector and access to a wide and established buyer base. Online sales can increase the auction's reach and drive prices higher.

• Decide whether to sell assets individually or in lots - Some assets achieve higher prices when sold separately, while others perform better when grouped. An experienced auctioneer will guide you on the best approach.

• Prepare the assets for sale - Gather all the relevant documentation, including service records, manuals, compliance certificates and proof of ownership, to give buyers confidence and increase final sale prices. Cleaning the equipment can also make the assets more appealing to buyers.

Sell your business assets with confidence

At Eddisons Asset Auctions, we help business owners realise the full value of their assets through professional valuations and specialist retirement auctions. We also offer negotiated sales, tender sales and a machine brokerage service. Find out more about selling with us or speak to our team to discuss your requirements.