Sell Your Business
Selling your business is a major decision. You have devoted your time, money, and energy into building, running, and operating your business. It may well represent your life’s work. If you have already decided that now is the right time to sell, you want the very best professional guidance you can get.
WHEN TO SELL YOUR BUSINESS
There are many reasons why a business over may decide to sell. It could be a result of a planned retirement and succession issue, an investor looking to exit, change of focus/non- core disposal or simply reaching a point where the business needs the support of a larger group to provide further investment to continue expansion. It is imperative that you allow enough time to plan your exit and find the right buyer.
HOW TO SELL YOUR BUSINESS
Whatever the reason for selling, it should be based upon clearly defined objectives and following consideration of the alternatives. The sale process can be time consuming and stressful and it is important to receive advice from experienced professionals to help guide you through the process.
Every business is different, the support and advice you receive must be focused towards your particular exit requirements. Before proceeding with a sale, we will help you consider alternative options.
At Visionary Business Brokers we plan and agree a suitable marketing strategy with each of our individual clients. As a business owner, you have already invested much time and effort in your business and will probably want to secure the best deal. The most common business owner objectives when selling are to:
- Maximize sale proceeds (net of tax)
- Complete the sale as quickly as possible without damaging the business
THE VALUE OF YOUR BUSINESS
Pride of ownership can make it an almost impossible task for a business owner to value their business. Having devoted many years as well as blood, sweat and tears into the business, a business owner may struggle to take an objective view on the value of their business.
The bottom line is, your business is only worth what a buyer is willing to pay, but a single offer alone does not demonstrate the true value of a business. A one horse race is a sure shortfall and guarantee not to get the best deal for your business; the more comprehensive the marketing, the more potential buyers you will find.
By engaging more than one buyer you create competitive tension which leads to multiple offers and the power of comparison. This comparison allows a business owner to understand the true value potential of their business and as a result secure the best deal possible.
Knowledge really is power when it comes to selling a business. With a better understanding of the sale value your business might achieve via a controlled exit process, you can progress to sale completion in the comfort that you are not selling undervalue.
INFLUENCING YOUR BUSINESS VALUE
The ability to secure maximum value from a sale can be influenced by:
- Selling at the right time
- Creating / identifying business protection / barriers to entry
- Identifying potential issues that could affect value and addressing them in advance
- Identifying those purchasers that will have a genuine strategic interest in acquiring the business
- Ensuring that the key value drivers of a business are effectively communicated to the purchaser
- Introducing competitive tension into the sale process
- Avoid last minute surprises for the purchaser which could jeopardize the deal
- Resisting last minute attempts by the purchaser to chip away at the price previously agreed
- Ensuring a range of options has been considered to maximize your proceeds net of tax
Contact us on more information of how to sell your business today!