5 Tips for Selling your Business & RetiringBack
With millions of baby boomers set to exit their businesses and retire over the next 5 years it’s critical for business owners to begin planning immediately. We offer our Five Key Tips for your exit strategy and increasing your odds for a successful business sale.
1. Start planning NOW!
It is never too early or too late to start planning the sale of your business. You’ll need to become informed on the emotional aspects to anticipate and be educated on the numerous complexities of the business sale process. This will help put you on a level playing field with buyers and increase the odds of a successful sale.
2. Create a clear vision of what comes next.
One of the biggest reasons businesses don’t sell is that business owners don’t have a vision of what they will do next. They cannot imagine not being the owner of ABC Limited and the fear of the unknown often means they get ‘cold feet’ and walk away from a deal at the last minute.
You should consider what comes next? Working in a different industry, spending more time doing charity work, becoming a consultant. What will your leisure time comprise, what about family & friends?
3. Be armed with the facts.
It is natural you will value your business higher than potential buyers will – you know it inside and out. Unfortunately, buyers don’t have that same level of understanding or emotional tie. Before buyers ask questions carry out your own due diligence and arm yourself with the facts about your business (imagine you are about to be questioned by the Dragons from Dragons Den). Being fully armed will instil confidence in any potential buyer and make the due diligence process easier.
4. Minimise surprises.
Identify potential negative issues during your pre-sale diligence and disclose them immediately while you still have negotiating power. At this stage nobody likes surprises!
5. Don’t take it personally.
Buyers will question everything about the business and want facts to support the answers you have provided. You might feel like you are being attacked personally. It is vitally important therefore you have a vision for your life after you sell and by being prepared to answer the difficult questions you can keep your emotions in check and see the deal through to a successful conclusion.
Preparing yourself and your business now will increase your odds of a successful sale when the time comes.
This Briefing Note is provided for information purposes only and does not constitute any form of financial or investment advice. We believe the information to be correct at the time of going to press but we cannot accept any responsibility for any loss to any person as a result of action or refraining from action as a result of any item herein.
Printed and published by ©Holborn Financial Limited authorised & regulated by the Financial Conduct Authority. November 2018