Introduction
When making the decision to sell you business you should consider the following:
Why do you want to sell?
KWS have found that releasing the value in the business is often not the only reason business owners wish to sell up. The motivation can range from retirement or sickness to family pressures or the desire for a change of direction.
Whatever your motivation, we believe that you must be mentally prepared to sell up and the reason why you are selling must be firm in your mind.
Consider now what you will do after you have sold; are you planning to keep working or will you retire? Do your plan to set up a new business in a different sector?
Are you prepared to be involved with your business after it is sold?
Once you have made the decision to sell your business you need to decide what role, if any, you are willing to play after the sale has completed.
Many purchasers will want the owner/s to be involved for a handover period after the sale has completed. Sometimes they may want to you remain part of the business on a consultancy or contracted basis for a longer period.
KWS encourage all business owners to consider whether they would wish to stay involved in their business (and for how long) once the sale has completed.
How much do you want to sell your business for?
KWS appreciate that you have probably spent a significant part of your working life putting your heart and soul into making your business a success. However, this emotional attachment can make it difficult for you to put an objective value on your business. Commonly, sellers put a higher value on their business than buyers do.
Most business owners do not know what the true market value of their business is and this is an area where KWS can help to guide you. Ultimately a business is worth what a willing buyer is prepared to pay, but by beginning the process with a realistic figure in mind the chances of success are very much increased.
When do you want to sell your business?
Deciding when to sell your business can influence the selling price. In an ideal world, by looking at the profit cycle of your business you should plan to sell just after a year of good profit, especially if this level of profitability is considered sustainable.
With this in mind, it pays to plan ahead for the sale of your company:
- Decide on the time to sell, both in terms of the business and your personal plans.
- Get ready for this time so that you can commence the sales process in a prepared manner.
Click here for a detailed list what information to prepare.
- Confidentiality
- Business Sales Process
- Mergers & Acquisitions
- Sources of Funding
- Negotiations & Closing the Deal
