How Do I Sell My Business?
Obviously, the answer is to find yourself a decent advisor. They should be able to provide answers to all the questions you might have and guide you swiftly and successfully to the best possible outcome. And equally obviously we would recommend ourselves - Frazer Hall Ltd. However, there are several steps you could take yourself first before you get the professionals in.
In some respects, it’s a bit like selling your house. You wouldn’t dream of putting your house on the market before you had fixed any obvious problems you were already aware of – dodgy heating, peeling wallpaper or leaking roof for example. And you wouldn’t put your house on the market without an idea about where you would like to move to and what you would like from a new property. The same holds true for selling a business. Is your business in good shape and do you have a plan for yourself after the sale?
You might like to first consider your personal circumstances. What is your financial position and what income might you receive when you sell your company – is it enough for your future plans? Do you have future plans? If you have spent the last ten to fifteen years working 70 hours a week are you ready to scale right back?
Then there is the timing. When is the best time to sell your business? Are you after a quick sale or do you have time to plan? What does your market look like – is it in good health or is the market all in a state of flux now? Will Brexit be a factor?
Then there is the actual business to prepare for sale. Rather like the house sale you need to ensure the business is looking in good shape to get maximum value for it, and to that end you need to prepare the business both financially and commercially. Financially you should ensure you have business plans, robust forecasts and accurate financial information. Commercially, are your products or services well received? Do you know your top clients and which products or services are working well? Do you have a plan for new business or expansion?
On the Frazer Hall website we have a handy questionnaire which you could use to check you have considered some of these questions called Plan4Sale Questionnaire (pdf) . Once you have been through the questions you might like to look at the document called Plan4Sale Critical Tidy Up Actions (pdf) which can take you through various issues you may or may not have considered before you think about selling your business.
Finally, you might like to consider if you are ready and prepared for the upheaval it will cause both personally and for the business. When you have nurtured your business and grown it to its current position it can be difficult to accept that others don’t see it as you do and don’t see its potential as you do.
It’s an exciting time selling your business and looking to the future, you need to make sure you are prepared.
Frazer Hall Limited
Amazon House, 3 Brazil Street, Manchester M1 3PJ
Company number: 07117249
Tel: 0161 819 1020