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Why Debt Reduction is Important

Updated: Feb 10, 2022

Preparation is crucial when selling a business

If your business has a high debt ratio it can significantly reduce net sale proceeds. Company owners aren't always aware that share sales are debt free, meaning that in 99% of transactions the departing shareholder(s) are left to settle/refinance some of the debt their business has been carrying. If your business has a low debt ratio prior to selling, it will be in a healthier position reducing perceived risk for the acquirer.

Allowing enough time to reduce debt in advance of selling your business should be part of your exit plan, meaning you walk away with more of the sale proceeds on completion.

Call us on 01384 274 778 / 075 888 925 88 to discuss or go ahead and book a free consultation to discuss your options.


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