For whatever reason, retirement, health, lifestyle, new challenges, at some time the question of new ownership or control of your company will raise its head.
When is the best time to sell?
How much is it worth?
Who will buy your company?
All are relevant and important considerations. At the outset taking time to consider and address aspects of the business a prospective purchaser will focus on, could have a major impact on the value and attractiveness for your company. Maximum value is more likely to be achieved and negotiations are always likely to progress quicker when dealing with a motivated purchaser.
Selling a company is not just an accounting or legal process. While these aspects are very important, primarily it is Sales and Marketing activity with a clear focus on maximising value for the owner.
Methods used and who are approached when selling your Company will have, as our experience confirms, a significant impact on the achievable value. If a competitor is approached who knows your company is for sale, given their own knowledge of your sector, they are unlikely to pay a premium unless you have demonstrable points of difference or the barriers of entry to your markets are particularly high. Consequently, the type of company approached and indeed the way the approach is made, can have a significant bearing on creating and securing interest in your business.
You are likely to get the best price for your business when there has been growth and with prospects of future growth.
It is a fact that many entrepreneurs are attracted to high growth opportunities as an expanding business normally, offers easier opportunities to create business. In determining value for your company, prospective purchasers will be putting a value (of their own) on the business.
It is good practise to review your business exit strategy every six months or so
and consider whether now is a good time to sell. In fact, asking the question “would people want to buy my company?” is a good test of whether you are generating value. Keep an eye on your company’s growth rate and future prospects.
No two deals are the same, but experiences are certainly transferable. You normally have only one opportunity when selling your company – it must be right for you, so give yourself the best opportunity to make the most of it.
Take a moment to think.
Needless to say, you have worked hard and made many sacrifices over the years to reach this point today. You have the scars to show for it.
Selling is all about timing. Is it the right time for you? Is it the right time for your company in this market?
It is an emotional decision. Staff will feel like family, the brand and ethos you have created, you want this to continue. This is why the buyer has to be correct. It is not always about the highest bid.
There are different options when it comes to selling. It could be a full or part share sale. You could continue within your company but de risk, take some cash and secure with your future. Our job is to present you with options which are most suited to you.
Every company is unique therefore every process is unique which we run, tailored to you.