When to sell your business
There are many reasons why a business owner may decide to sell. It could be a result of a planned retirement and succession issue, an investor looking to exit, change of focus/non- core disposal or simply reaching a point where the business needs the support of a larger group to provide further investment to continue expansion.
It is imperative that you allow enough time to plan your exit and find the right buyer. Many business owners do not think about selling until the business is in decline or they are ready to move on, as a result they have limited or reduced interest in running and continuing to grow their business. This is a less than ideal situation for any seller.
Time to think like an entrepreneur, not the business owner. Plan to sell when you are on the top of your game, doing well and making money. It will take a time to find and engage a premium buyer and your energy, commitment and business success will directly and positively influence the final deal you secure.
Exiting your business
Any planned exit from your business must factor in both your personal and business circumstances to ensure a successful and rewarding exit from your business. Before proceeding with a sale, we will help you consider your options. This will start by looking at the possible succession candidates, which may include:
a family member
a third party buyer
The sale of a business can be a complex and difficult process. At an early stage you will need to decide what your exit ambitions and priorities are. You may be driven by the best price, ease of transaction, buyer’s intentions for the staff and business or just the speed of a quick sale.
The sale of a business can often be considered a major life event. Regardless of the reason for sale or how soon you wish to exit, the process should never be underestimated and you must always allow appropriate time to plan, prepare and market your business on a confidential basis.
Preparation keeps you in control, the more control you have, the better your eventual deal. With the right support you have little to lose and much to gain. You will only sell your business once, so do it right.
How to sell your business
Whatever the reason for selling, it should be based upon clearly defined objectives and consideration of the alternatives. The sale process can be time consuming, stressful and therefore it is important to receive advice from experienced professionals to help guide you through the process.
Every business is different, the support and advice you receive must be focused towards your particular exit requirements. Before proceeding with a sale, we will help you consider the alternative options.
At Vexus we plan and agree a suitable marketing strategy with each of our individual clients. As a business owner, you have already invested much time and effort in your business and will probably want to secure the best deal.
The most common business owner objectives when selling are to:
maximise sale proceeds (net of tax)
complete the sale as quickly as possible without damaging the business
protect management and employees’ interests as far as possible
The value of your business
Pride of ownership can make it an almost impossible task for a business owner to value their business. Having devoted many years as well as blood, sweat and tears into the business, a business owner may struggle to take an objective view on the value of their business.
The business valuation process can be complex, based not just on your bottom line profits, but a multitude of figures and factors – both quantitative and intangible. Financial performance provides an objective and useful insight into material value and history, but rarely considers the true business opportunity and intellectual property values.
The bottom line is, your business is only worth what a buyer is willing to pay; a single offer alone does not demonstrate the true value of a business. A one horse race is a sure shortfall and a guarantee not to get the best deal for your business; the more comprehensive the marketing, the more potential buyers you will find. By engaging more than one buyer you create competitive tension that leads to multiple offers and the power of comparison. This comparison allows a business owner to understand the true value potential of their business and as a result secure the best deal possible.
Knowledge really is power when it comes to selling a business, and with a better understanding and sense of the value of your business, you can progress to sale completion in the comfort that you are not selling under value. Click Here if you would like us to independently value your business.
The importance of confidentiality
The importance of confidentiality in the process of planning and marketing your business cannot be overstated.
At BuyMyBiz we take confidentiality very seriously. Every conversation or correspondence you have with us will be with a named individual who looks after your account. Any information received is treated as sensitive and will not be used for any purpose outside the scope of what is agreed.
Much of the value in a business is the structure of the staff, key individuals, supplier relationships, key business processes and other IP. If sensitive information is leaked prior to the appropriate time, it could cause serious problems for the business.
This need for confidentiality is one of the strongest reasons for engaging the services of a good proactive broker from the very beginning of your exit plan. A business owner cannot value their business impartially, and it would be very difficult if not impossible to take your own business to market yourself in a confidential way.
The next step
Whether you are thinking about your exit strategy now, or considering it for the future, it is never too early to talk to us. No matter how long it takes to sell, what is certain is that you will never sell if you don’t put it on the market; it may be your best option to enquire now!
Reach over 500,000 active business buyers
Through our network of partners we can connect you with over 500,000 business buyers!
The benefits of full broker support
Use our Full Broker Service to help you effectively market and sell your business. With our powerful marketing and business sale support, you are free to continue running your business while we do much of the essential work. We will also support you to help avoid many of the common pitfalls and costs associated with the business transfer market and / or trying to sell your business direct.