CONSIDERATIONS WHEN PREPARING A BUSINESS FOR SALE
Taking time to prepare a business (and its owners) for a sale will bring significant reward, not least of which are a business that is more attractive to acquirers and able to command a higher price.
Typically a business sale process will take a year, so it is wise to allow a year before starting that process to prepare.
Here is a small selection of things to consider:
- Are you planning to retire fully?
- Would you be willing to invest some of your equity with the buyer and work for the new owner?
- What type of sale would you consider? Sale of shares or sale of assets only?
- Are you looking to transition the company to the next generation of your family or to your senior management team?
- Is there a management team in place that handles day to day operations?
- Who holds the key client relationships?
- Does your business have contracts with key clients?
- Is the business reliant on any particular client?
- Is the supply chain secure?
- Are your staff handbooks, employment contracts and policies up to date?
- Is any Intellectual Property fully protected?
- Is your website up to date and error free?
- Does your website contain properly drafted disclaimers, privacy policies, copyright notices and terms and conditions for business?
- Are all the assets in the Company’s name rather than individual names?
- Are your quality and vendor accreditations, regulatory approvals and licences up to date?
- Does the company produce regular management accounts?
- Would you sell to a competitor?
- Can you list all exceptional items in the P&L?
- Do you have a forecast and budget?
- Are there any legal disputes?
- Are all shareholders in agreement with the sale?
- Is there an up to date shareholders’ agreement in place?
If you’re considering selling your business in the near future, why not join us at our next free Business Owners’ Masterclass.
The event takes place on the morning of 5th October at HMS Belfast, London.
To reserve a place please complete and submit the short form below:
