Selling your business
posted on May 29, 2019in the Blog Category
Selling your business
As a business owner you will have worked for years growing, evolving and nurturing your business. Selling a business can be difficult to manage as there are many practical issues to consider in order to reach the finishing post!
Establishing and maximising the value of your business
It is notoriously difficult to value a business and there is no correct answer – it is ultimately worth what someone will pay for it. Methods range from multiples of profit, balance sheet totals and future earnings value. Ask a professional for help and they will produce a range of valuations and discuss these with you.
But you need to pitch it right as going to the market with an unrealistic asking price can sabotage your chances of success.
There are many areas where you need to “sale ready”, ranging from systems, data, customers, products and more. you also need to have a due diligence pack ready – ask us for more details.
A sales information pack should be produced to set out the key metrics and benefits of the business and this will include all relevant information that the potential buyer will be interested in.
The largest challenge is dealing with the volume of enquiries and the eligibility of the prospects. This is a large commitment and most business owners are unable to take the challenge while still working within the business. Again, we can help with this – we have contacts in the M&A world to find a buyer.
Completing the deal
Once you have received an offer (in fact before you do) you need to get the legal paperwork in place – use a good corporate lawyer to do this for you, it will be a worthwhile investment. They can advise deal structure, negotiations, legal issues, due diligence, contingency planning, timeframes and documentation.
We know these lawyers and work closely with them on our client’s transactions.
Lots to consider here, IHT, CGT, and various reliefs which are available – ask us to help well in advance of a potential sale as often this needs to be planned for several years beforehand. sale.
Come to our free seminar – July 2nd
You may not be planning to sell or pass on your business right now, but it is useful to know when to start thinking about it. With that in mind please come to our free seminar on Tuesday 2 July @ 8.45 am at Booths Hall, Knutsford. To book your place go to www.eventbrite.co.uk