Experienced in both selling and buying businesses, the SSF team understands that selling a business is just like another form of raising finance. As such it needs time, planning, careful preparation and alignment with prospective purchasers. If you are considering selling your business, it’s worth considering the following questions before deciding to put it on the market.
Getting full value for your business is likely to take 12-24 months of careful planning and preparation.
What you think its worth and what the market values your business at can be miles apart. Be objective by bench marking other business sales in similar sectors and prepare your business accordingly.
Good businesses have good people so consider if you have the right team, need to fill key positions and have the right organisational structure to deliver results. Owner managers often overlook this aspect and how essential or not they are to the business.
You need to sell when your business has potential to grow and is still on a growth curve. It should not be “peaked out”. If it’s making the right numbers now, then its more chance of maximising value. Think like an entrepreneur not like a business owner.
Before selling, look at current market conditions for your industry and fast forward a few years.
If a buyer is concerned that a business is too dependent on the owner or a single customer, he may take his offer elsewhere. A good business can operate when the owner is away and has good revenue diversification, and does not rely on a just a few major customers.
Sometimes you can seal a deal by agreeing to stay on in a consulting role for a period of six months. But first, you need to determine whether it's really worth it to you. If you're willing to stay on, it might reduce the risk to the buyer and increase the value of the company
Unresolved issues can rear their ugly head and interfere with a sale, particularly in areas such as company ownership, accounting and intellectual property rights.
If an outright sale isn't right for you, get someone to help you evaluate other options.
If you are considering selling your business please contact us to discuss how we can help and find a potential buyer.