Thinking of selling your business?

Five things to consider..

  1. How much is my business worth?

There is no magic formula to value your business – you will want as much as possible and the buyer will want to pay as little as possible; the value will sit somewhere between the two.

Increasingly. the value of a business sits not in its plant and machinery, its computers and buildings but in the knowledge and skills of its employees and the way these are organised. Understanding and capitalising on the value of these intangible assets is the key to maximising a sale value.

  1. Sell when you want to rather than when you have to

TIME : PLAN : RESEARCH

A strategic approach will put you, as the seller, in a far better position when it comes to negotiating your business sale.

The process of selling a business is neither easy or quick. The longer time you have to plan your exit and prepare your business, the smoother the process will be. It will give you time to research who would be interested in buying your business and structure it in a way that it is more attractive to those people.

  1. The stumbling blocks to a smooth sale

No strategic approach to exit Accountancy issues Legal issues Lack of good housekeeping

  1. How to structure and prepare your employees

Keeping the potential sale of a business confidential is virtually impossible, especially during a buyer’s due diligence process.

In the years before your planned sale, it is important to structure your organisation to encourage knowledge transfer. A more open approach will help eliminate rumours and concerns of affected customers, employees, and vendors, all of whom usually presume a sale will affect them negatively unless they have a better understanding of the process.

  1. How to replace the income from your business

Small business owners reap a number of financial benefits from their ownership. Many draw a competitive salary, receive regular bonuses as profits increase and enjoy significant entertainment and travel budgets paid by the company. So how much will you need in retirement and will the profits from the sale last you?

Our autumn masterclass will look into all of these areas in more detail drawing from case studies, experience and a range of professional expertise.

To book a place, please call Emma on 01603 597701 or visit the masterclasses page here for more information.

Read the latest from our blog...

8 December 2023

'Sorry, we're cash only!'

The impact of the repeated increases to the interest rates on bond and equity markets has been harsh, leading to declines in asset valuations all while elevating the current returns on cash investments. In light of the current financial environment is it a good idea to switch to cash investments? As the old adage suggests, "cash is king", right? Well, not quite… Investing is a long-term endeavour - a horizon where cash suffers.

Find out more about 'Sorry, we're cash only!'

14 July 2023

The Big Picture

The post-Covid period has been a frustrating and often concerning time for investors who have seen poor returns against a backdrop of rising inflation and interest rates. In this note, James Bacon, one of our associate directors, reminds us of the importance of standing back to see the big picture.

Find out more about The Big Picture

1 June 2023

Buccaneers of The Financial Market

There are many hidden secrets waiting to be discovered and since ancient times, the allure of finding hidden treasure in unchartered territories has captivated the human imagination. Many courageous explorers have ventured into the depths of the ocean to try and unearth these precious treasures, but many have failed. In many ways, financial markets share many conceptual similarities with the ocean - mainly that markets are also deep and liquid. But thankfully, we seem to know a lot more about markets than we do about the ocean.

Find out more about Buccaneers of The Financial Market

2 May 2023

Don't be Amazed - Succession can be Successful!

I’m not really sure if I like mazes. Hampton Court was my nemesis – the grim realisation, as I found myself at yet another dead end, that although I knew there must be a way out there was no guarantee I’d find it.

Find out more about Don't be Amazed - Succession can be Successful!