The most common reasons for a business-owner wanting to sell their business are:
- They desire a lifestyle change – for instance, retirement
- They are an entrepreneur who feels the business has outgrown them and who is not motivated by the managerial requirements of a larger busines
- They believe the business needs significant investment to progress to the next stage
- They want to bank the value they have created
- They have received an un solicited offer for the business
StrategyThe best-run businesses are always fit for sale but the value of your business is whatever a buyer thinks it is worth. However, the things that make the business profitable and manageable for their current owners also make them attractive to potential buyers: solid strategic positioning, good management processes, managed risks and strong cash flows.
Getting the best price for your business is a strategic, marketing and sales exercise. Your business must be growing, profitable, well-managed and measurable, in an attractive market sector and delivering cash first, and well-marketed and positioned for sale second. You should also prepare, position and market your business so that the price you receive reflects the motives of the buyer.Timing
Many owners sell because they receive an offer, but you should plan your sale for a time and set of circumstances of your choosing, once you are happy that the business is fit for sale and strategically positioned to maximise its value at that point. Pay attention to the possibility of generating competition. As in any market, if demand exceeds supply then the price rises.Risk
You need to minimise risk. The kinds of risk you need to identify and mitigate are: over-reliance on a small number of customers or suppliers, over-reliance on key members of staff, including you, inadequate or missing contracts, inadequate documentation of processes and potential or actual legal proceedings.
These are a few of the considerations you need to take into account when preparing for a possible sale - but there are more.Business brokers Pace Equity and business advice firm Nick Bettes Consulting are conducting a seminar which will give you further information and advice that you can incorporate in your own business planning immediately. You'll also get a chance to talk directly to our experts about your particular concerns or challenges.
Follow this link for further details and to register: http://successfullysellingyourbusiness.eventbrite.co.uk