How to sell your business?
Selling your business can be a complicated business (see what I did there)…if you read the first and second blogs in this series you will know that you’ll need to determine your business worth and decide on the best time to sell, but there are still quite a number of steps before you can finally be free to take the next steps in this journey called life.
Get professional advice
My most important step in selling your business is do not try to DO-IT-YOURSELF. You have undoubtedly invested a lot of money, time, and energy into building your business, so do not waste that now at the last hurdle. You will need a number of professionals in order to get the best price for your business and for the sale to go smoothly.
Plan your exit strategy
Professional: Business Coach
It is essential that you define your goals for selling your business. Do you want to sell the entire business and not have anything to do with it anymore, do you want to sell it, but still be involved in an advisory capacity, or do you just want to sell part of it? Decide how you want the transition to look. A business coach can help you develop this strategy.
Prepare your financial records
Professional: Accountant
You will need all your financial records in order if you want to sell your business. You’ll need your financial statements, tax returns, profit and loss and balance sheets. All your records must be accurate, up-to-date and in an easy to digest format for potential buyers. Your accountant can help with this, but later on you may also need an accountant with experience in supporting owners with selling their businesses.
Prepare your legal documents
Professional: Solicitor
Compile all the legal documents related to your business including any licences, leases, contracts and agreements. Ensure they are all up to date and have been fully reviewed. Create Non-Disclosure Agreements (NDAs) to ensure any discussions around the sale are kept confidential. A solicitor can help you ensure all these documents are up to date and create a water-tight NDA for you.
Create a compelling package
Professional: Broker
Now you have all your ducks in a row you will need to create a sales package that highlights the strengths and opportunities of your business, a bit like a set of particulars for a property. This can be used to attract potential buyers and as a basis for starting discussions.
Negotiate the deal
Professional: All of the above
Once you have an interested buyer or buyers, if things have gone well, you are likely to need all of the professionals you have found in order to decide on the best deal. You will need to look at price and terms, as well as what the buyer has to offer in terms of experience and enthusiasm in your industry…this is a bit like Dragon’s Den…! Listen carefully to the advice of all of your professionals.
Close the deal
Professional: Mostly the solicitor
Once you have decided on a buyer the final due diligence will now be done. Terms and dates finalised and all the necessary legal documents prepared and executed. Then when everything is in place the sale will happen, you’ll get your money and be free to start the next stage of your journey.
Selling your business can be a complicated process, as you will have read in this series of blogs there are lots of ways to optimise the process, to ensure you sell at the right time, get the best price and that the structure of the sale suits you and your ambitions.
If you are thinking of selling your business in the immediate future or at some time in the distant future why not book a call with me to chat about it
