5 points to consider when selling your business
There comes a time every business owner considers selling up shop and moving onto the next project or enjoying retirement. Its a decision that require a lot of thought and should never be rushed. But after careful consideration if you find yourself ready to make the move and sell your business there are still many factors at play and making the right exit could be the difference between disaster and triumph.
Thats why we decided to put together our top 10 tips to consider when selling your business!
1. Take Your Time
Although this is an obvious one it is probably one of the most important points to consider on this list. Dedicated research and planning at this stage could be the difference between reaching your full potential or loosing out.
Consider and understand the many different exit options that are available and how they might best suite your goals. A partial exit, short handover or a clean break could at first seem like the most viable option but it is possible that a management buyout could be the right choice for you depending on what goals you have and what it takes to achieve them. Understanding what you need from the deal here will be key. This bring us onto our next point.
3. Seek Professional Assistance
With so much to consider and the pressure involved with making high stake decisions its understandable to become overwhelmed, tired and eventually make mistakes. Take away some of that stress by enlisting the advice of a industry professional, someone who is used to dealing with these decisions on a daily basis. An advisor could manage the sales process allowing you to focus on the business. Ensure you take due care in selecting your advisor and always seek multiple opinions until your sure you’ve found the best person suited.
4. Audit Your Business
Understanding the value of your business and where it sits within the market place will play a huge part in the sale of your business. Are you considered one of the market leaders? What sort of demand do you have? What percentage of the market do you control? These are all questions you should be asking yourself. Put yourself in the shoes of your potential buyer. A major factor to consider when purchasing a business is brand value. What does your branding say about the quality of your business, ensure your branding screams market leader.
5. Cash Is King
By increasing your businesses profit, as opposed to flat profits, you can show growth potential, which is money to a potential buyers eyes. Strong financial health will always be one of the key factors to consider when buying or selling any business.