Selling your business is no small feat. There’s a lot to consider. It’s not a task for the faint hearted and you’ll need to set some time apart to complete the sale. Planning makes perfect, you’ll need to think of everything and leave no stone unturned. We’re not here to scare you, but to help you see everything in the bigger picture. Some even plan an exit strategy before even considering selling the business. This can happen years in advance! If you have a well thought out exit strategy, this might be very appealing to buyers.
Why Are You Selling Your Business?
First thing to ask yourself is why are you selling your business to begin with? Are you looking to retire, are you bored or have you simply had enough? These are the key considerations as they could impact the business after you have parted ways. Even though you may not be the owner or manager anymore, you still might want to be invested in the business and you’ll need to think about your workforce, customers and suppliers. Will they be affected?
If your answer is ‘I want no involvement whatsoever’ then it’s likely a full sale is the right option for you. But if you’re only going to be selling part of your business, then you’ll need to make it clear to the third party that you’ll still need financial or management involvement.
How Should I Sell My Business?
There are many different strategies available, it’s simply about finding one that suits you. For example, you might want to pass the business on to your children or you’re considering selling it to your employees. Research is paramount.
Dependent on your business, size and sector, most businesses are usually sold in a trade sale to another business. These businesses are often in the same field. There are other options available, you need to make it clear what you want from the sale. If it’s a partial or full sale. Will you be selling your assets like customer data, equipment or intellectual property?
How Will I Be Paid?
In your agreement, you are entitled to ask for a full payment when the sale is completed, or you may be prepared to accept payment in instalments.
How Should I Prepare?
Permitting that your business is profitable, make sure your business is ready for sale. Take a look at the many positive attributes your business has. Do you have a strong customer base, has your income increased year on year? Pick out your greatest achievements and list them. You’ll also want to list any pain points and fix any issues which could affect the business’s value. At this stage you might also want to consider getting a preliminary valuation before you offer it for sale. You want to have your business appeal to buyers.
As well as those points to consider you’ll need time. There really aren’t enough hours in the day but you’ll need to prepare your business for sale as soon as possible. This will allow you to get all of your records and documentation in one place to present to potential buyers. This will include the likes of financial statements and tax returns.
You’ve probably nurtured this business from the get go and will more than likely have some emotional ties to it. Like a relationship, sometimes it’s time to let go and the longer you hold on, the harder it is to let it go.
But you don’t want to panic either. If your business isn’t performing then that’s not a good time to sell. Buyers will pick up on this and are likely to back off.
How Ampios Can Help
If you’re considering selling your business then help is available. We have a team of experienced advisers that can have a big impact on the success of your sale and the amount you receive. Our lot will help you to prepare for the financial aspects of the sale and any legal issues. If you need to get in touch, we’d love to have a chat. Give us a call on T: +44 (0)333 987 4672 or send us a message via our contact form.