What is equity release?
Equity release is when you turn part of your ownership stake into cash. While many people associate the concept with homeowners releasing capital in retirement, it is just as effective for business owners. Selling a portion of your shares allows you to:
- Reduce personal finance risk
- Diversify wealth beyond a single business
- Begin succession planning without a full exit
- Access funds for personal use, such as buying property or retirement
How to release equity from a business
There are several ways to release equity, depending on your objectives, ownership structure and appetite for ongoing company involvement.
Structured equity release
By refinancing or recapitalising your business, you can withdraw funds while retaining control of the day-to-day operations.
Secondary sale of shares
A straightforward option where you sell some of your existing shares to a new or existing investor, providing you with immediate liquidity while keeping your company stake intact.
Partial exit via private equity or venture capital
Private equity and venture capital firms can buy a minority or majority stake in your business. It is a route that delivers capital for you and strategic support for future growth.
Employee buy-in or management buy-out
See your business in the hands of those who know it best by selling shares to your management team or employees. This method provides liquidity while rewarding and motivating your team.
“Equity release allows owners to unlock value without walking away. It is about creating flexibility, freeing up capital, reducing risk and preparing for the next chapter, while still retaining a role in the business’s success.”
What are the advantages of equity release business sales?
Equity release can be a great idea for leaders in a range of industries. Some of the main advantages include:
- Acquiring a lump sum of capital to be used in any way you want
- Reducing your risk and responsibility
- Allowing you to start your succession planning and find suitable individuals to take the business forward
What is the process for releasing equity from my business?
We guide you through every step of an equity release transaction, ensuring the process is smooth, transparent and tailored to your needs. Here is what a typical journey could look like:
- Consultation – Starting with a confidential discussion, we will take time to understand your objectives, timescales and preferred deal structure
- Valuation – Our specialists will value your company to determine a realistic equity release opportunity
- Buyer search – We develop marketing documents and send them to suitable investors across our network
- Deal completion – Our experts will help negotiate terms, manage due diligence and oversee legal documentation to ensure you achieve the best outcome with minimal business disruption
Why should I release equity from my company with Eddisons Business Sales?
With around 75 years of business sales experience, we understand the unique challenges that come with selling shares while retaining control of a company. Our bespoke solutions mean you can achieve your desired outcome, with our team doing the heavy lifting.
Our team have a proven track record of sales and is highly rated by past clients, which we believe should give you the confidence needed to use our expertise. Plus, we are authorised and regulated by the Financial Conduct Authority (FCA) for your peace of mind.
Release equity from a business and fund a new venture with us
Ready to sell some shares to fund a new venture? Call 0113 340 9840 or complete the form below to tell us about your requirements. A member of our team will be on hand to assist you.
Get in touch with Eddisons
Please contact us for more details and information
Frequently asked questions about equity release business sales
Do I have to sell my entire business to release equity?
No, you can choose a partial sale, which allows you to retain a significant stake while still unlocking funds.
