How to sell your business to a competitor safely
Selling your business to a competitor is a strategic route that can achieve a premium outcome. Competitor buyers often see value through market expansion and operational synergies, making them more likely to offer favourable deal terms against non-competing parties.
Navigating a competitor sale requires professional planning to maintain confidentiality and achieve maximum value. At KBS Corporate, we have a proven track record as the UK’s No.1 experts in selling a business – with our tailored strategies and unrivalled buyer reach, we ensure you sell your company successfully for the value it deserves.
Throughout this guide, we will explore:
- The benefits of selling your business to a competitor
- The risks involved in selling your company to a competitor
- How to approach a competitor to sell your business
- How KBS Corporate streamlines and optimises the business sales process
| When selling your business, reaching the right buyer is key to maximising value. At KBS Corporate, we offer the industry’s most extensive buyer network, connecting your company with thousands of motivated trade buyers, private equity firms & more. Begin your confidential enquiry today. |
Why Consider Selling Your Business To A Competitor?
Competitor acquirers are typically highly motivated – they recognise the strategic value of absorbing a rival and expanding their market share. They also tend to have the financial resources and industry knowledge to make a swift, attractive offer.
At KBS Corporate, our vast buyer network and tailored approach ensure you’re fully prepared to sell your business with confidence. With our specialist deal support, including expert legal and tax advice, we guide you seamlessly through the complexities of selling to a competitor.
Some benefits of selling a business to a competitor include:
- Potentially higher offers – Competitors are often willing to pay a premium rate to absorb a rival and capture additional market share.
- Easier integration – Industry familiarity allows competitors to quickly understand your operation, making for a smoother post-sale integration.
- Faster deal process – Competitors can typically move faster due to their sector knowledge and existing infrastructure.
- Access to interested buyers – We connect you with well-funded, serious buyers through our buyer reach, including 500+ equity firms and thousands of strategic enquirers.
- Maximised value – Our expert negotiators and market-leading marketing materials ensure your business is presented in the best possible light, attracting strong and competitive interest.
The Risks Of Selling Your Business To A Competitor
While selling your business to a competitor offers many advantages, it’s important to approach the process carefully to ensure your interests are protected at every stage. These risks can be easily avoided with the right professional support and expert guidance.
At KBS Corporate, we connect you with our expert legal services and specialist advisers who will guide you throughout the transaction. From initial discussions to final negotiations, we ensure both parties have a smooth transition that remains secure, confidential and aligned with your goals.
Here’s how we can help to mitigate risk:
- Robust confidentiality agreements – Ensuring sensitive business information remains protected.
- Controlled information release – You decide when and what is shared, safeguarding key business insights.
- Expert legal and deal structuring advice – Our in-house specialists facilitate secure transactions, tailored to your business.
- End-to-end professional guidance – Ensuring every stage is managed to minimise risk and maximise business value.
| Trusted by business owners across the UK “We worked with KBS to support the sale of our recruitment business & we’re very pleased with the service we received. Our KBS representative, Fabio, was particularly impressive – calm, patient, knowledgeable & always approachable. He made what could have been a stressful experience much easier to navigate. We would happily recommend KBS to anyone considering selling their business” – Mark Foster, CEO of FPR Group (TrustPilot) |
How To Approach A Competitor To Sell Your Business
Approaching a competitor to sell your business is a process that demands expertise and total confidentiality. While selling to a competitor can unlock growth opportunities, safeguarding your company’s data and maintaining leverage in negotiations is vital at every stage.
In the short video below, we explain how to prepare your business financially ahead of a sale to a competitor. Strong financial preparation is essential when dealing with trade buyers, helping you maintain confidentiality, support valuation assumptions, and retain leverage during negotiations.
Partnering with a business sales adviser, such as one of our company sales experts at KBS Corporate, is the most effective way to achieve a secure, competitive and maximised outcome for your company sale. Here is our step-by-step guide to approaching a competitor:
- Engage a professional sales adviser
90% of businesses fail to sell without a professional business broker or sales adviser. With 25+ years of experience and thousands of successful sales, we bring unparalleled expertise to the sales process, founded by experienced entrepreneurs. - Position your business for maximum value
When selling your business to a competitor, it’s vital to present your business in a way that highlights its strengths and future potential. At KBS Corporate, we showcase your company’s key value drivers to highlight unique selling points and make your business stand out. - Qualify prospective buyers
Selling your business isn’t just about finding any buyer – it’s about finding the right buyer for you. Our Buyer Matching Engine uses cutting-edge technology and algorithms to identify ideal buyers based on financial strength, strategic fit and intent. - Implement confidentiality measures
Confidentiality is paramount when selling your business to a direct competitor. At KBS Corporate, confidentiality is at the core of our sales operation, ensuring robust NDAs protect your sensitive information before disclosure, preventing data misuse. - Maintain leverage by targeting multiple strategic buyers
In recent transactions, we have attracted 50-120 interested parties, which frequently leads to multiple competing offers, exemplified by our recent successful sale of The Packaging Company, acquired by Antalis. - Structure the sales agreement to protect your interests
At KBS Corporate, we offer full deal support throughout the sales process. Our advisers are skilled negotiators, paired with leading legal partners to ensure the transaction is structured in your best interest, from exclusivity periods to earn-outs and warranties.
| Did You Know? KBS Corporate is ranked as No.1 in LSEG’s UK business sales ranking, with over 200% more deals completed by us in 2024 than our nearest competitor. We are experts at selling SMEs, with professional valuations up to £15 million & higher – visit our previous article on How to Sell A Business Properly for further guidance on maximising your company’s value. |
How KBS Corporate Can Help You Sell Your Company To A Competitor
Maximising Value When Selling Your Business
Partnering with a specialist business sales adviser is vital to maximising your company’s value when selling to a competitor. At KBS Corporate, we provide complete support through strategic positioning, confidentiality and expert guidance.
Here’s how we can help business owners achieve the best possible outcome for their competitor sale:
| Sales Stage | How We Can Help |
| Identify & Showcase Your Value Drivers | Analyse your financials, IP (Intellectual Property), contracts & synergies. Develop a bespoke strategy to highlight value drivers. Ensure your company stands out to competitor enquirers |
| Create A Competitive Bidding Environment | Leverage our extensive global buyer reach (PE, family offices, etc.). Generate interest from a multitude of suitable bidders. Drive up value while maintaining negotiation leverage |
| Present Your Business At Its Best | Produce market-leading marketing materials. Protect confidentiality with anonymised documentation. Showcase USPs & sell your company to competitors in the best possible light |
| Full Deal Support | Structure the deal with robust Non-Disclosure Agreements (NDAs), warranties & protections. Coordinate legal advisers, tax & financial advisors. Manage negotiations, due diligence process & completion |
| Plan for Post-Sale Wealth | Connect you with award-winning financial planning partners. Advise on tax-efficient structures (e.g. Business Asset Disposal Relief). Help you reinvest or preserve wealth for long-term security |
Selling your business to a competitor can unlock exceptional value when guided by experts. With KBS Corporate’s market-leading approach, unrivalled buyer network and bespoke end-to-end support, you can navigate every step confidently and maximise your sale price.
Ready to sell your company to the right competitor? Contact our advisers today to make your FREE confidential enquiry and start your tailored exit planning process.
How To Sell Your Business To A Competitor: FAQs
Selling your business to a competitor can be complex. Many business owners are conscious of sharing sensitive information, negatively impacting key employee contracts or limiting their negotiating power.
Partnering with a business sales adviser ensures security and transparency when selling to a competitor. At KBS Corporate, our experienced advisers (also former business owners) have 25+ years of expertise in business brokerage and competitor sales, safeguarding your interests and optimising your transaction.
Yes, you can sell a part of your business to a competitor. This growth strategy can often allow business owners to bring in more capital by selling shares to investors or selling specific business assets.
For more information and guidance on partially selling your business to a competitor, don’t hesitate to contact our specialist team, who will be happy to assist you.
The legality of operating in the same industry after selling to a competitor will depend on what is decided during the negotiation process. You may be asked to sign a non-compete agreement (typically for a duration of 3-5 years), which aims to protect the buyer from your potential competition.