Category: Helpful tips for SME's | Preparing to sell a business
Sat 2nd November 2019
We are often asked by business owners, what should I do to make my business sellable at the best price?
Our response is make sure the business is sustainable. Make sure the business can run without you, develop your management team, identify a key person(s) as a potential general manager or MD replacement. Reduce customer concentration. Put systems and processes in place so that someone new can quickly understand how the business functions day to day.
These are all key high level points that will open the market for your business to a wide range of buyers, drive and maintain the price, and put you in a stronger position to negotiate your exit terms.
Looking deeper though when buyers start their due diligence, missing employee contracts, out of date HR policies, out dated IT systems are just some of the issues which can trip up a deal and reduce the value.
Obtaining good advice and a deep dive business review from an experienced advisor – preferably someone who has sold their own businesses and been through the process – to identify and address any such issues before you approach the market for buyers can be invaluable.
We have a panel of experienced business advisors who we can recommend, who offer a free initial review. An hour or two spent looking at these key points with someone looking from the outside could pay a significant dividends, so do get in touch.