Selling a business can be a daunting task for anyone, strewn with potential pitfalls for those who are unprepared. Here at Ryans we can offer expert advice and guidance on how to compose a sale strategy which would benefit you the most.
Set Objectives And Manage Expectations
Firstly, an outline of any potential sale objectives and the resulting aims must be established to allow you to lay the foundations for any transaction.
This planning phase allows you to determine what you want to achieve upon finalisation in order to basque in what you consider a successful sale.
When Should I Sell My Business?
The decision on the timing of a potential sale must be identified as beneficial to you as a business owner.
Many factors can signal the right time to part with your business such as an alteration in interest or primary focus, clashes with secondary or ulterior business interests or retirement and succession planning.
Attempting to sell your business at the inopportune moment can have great detriment to the potential dividends of a sale, so don’t rush it if you don’t need to.
Preparatory Steps For A Business Owner
- Maximise Business Assets & Company Value
Any business assets or company value must be maximised, i.e replacing or upgrading equipment, curating the strongest workforce and corporate structure, and raising company profit and profile via sales and marketing.
Increasing the maximum value of the business would attract more prospective buyers and provide a greater fee upon asset sale.
- Attain an Independent Business Valuation From a Qualified and Objective Third Party
This step is crucial in supplementing realistic end goals for a business sale and should immediately follow attempts to increase asset value to garner the best deal.
Remember, often a big part of a prospective purchaser’s interest in a company is the potential and probability of future dividends.
- Get Advice from a Chartered Accountant
Once the value of your business has been identified, it would be beneficial to liaise with a business solutions or planning firm such as Ryans Chartered Accountants in order to soundboard your ideas and receive expert advice on potential strategy.
A degree of objectivity and a proven track record may provide a calculated oversight on what shouldn’t be a decision fuelled by emotion.
- Organise Your Documentation
All legal paperwork, accounts and bookkeeping documentation must be succinctly organised. Permits, licences, employee and client contracts must all be readily available.
The welcomed clarity of a potentially murky swamp of A4, may be very appealing to potential business buyers, speeding up the sale process, as time kills deals.
- Consider Management Succession
Consider and designate management succession options as part of your exit strategy.
This step is more beneficial to the continued thriving of a business after your departure, a good choice of key management inheritors can provide stability and ease a potential transitory period.
The handing over of responsibilities to a management team should be gradual to allow for sufficient acclimatisation.
Finding A Buyer For Your Business
Identifying a suitable buyer(s) for your business can be a frustrating endeavour, the tumultuous negotiation period, counter offers, what everything has been leading up to, all dependent on this final hurdle.
Some key tips for finding/choosing the right buyer for your business include –
- Identify multiple potential buyers if possible, this gives you the freedom to analyse and decide upon any offers without feeling obligated to take a sub-optimal route.
- Communication is key, so be in a constant clear dialogue with any potential buyer. This stream of clarity will benefit all involved and allow any transaction to conclude smoothly.
- Allow some room for negotiation, this is only natural for a deal of this type, however stand firm on an asking price or deal that you feel realistically reflects your business’ true worth.
- Have any commitments or agreements put in writing, including confidentiality or non-disclosure agreements, this protects your information and gives any potential deal veracity.
Let Ryans Help You Sell Your Business
Here at Ryans we have a history of client service excellence spanning three centuries. As a chartered accountancy and business solutions firm, we offer our expert services to efficiently manage your business and corporate requirements.
We simplify our expansive expertise to ensure full transparency and maximum efficiency of our solutions and planning when dealing with you or your business. Contact us today!