Achieving maximum sale value

Here’s a few considerations to help you achieve the best outcome when exiting. 

Be clear about why you are planning to sell and consider alternative exit options such as trade or private equity buyers, selling a minority stake, a management buy-out or buy-in, or an Employee Ownership Trust.

Proper preparation will ensure you present your business in the best possible light. Take a critical look at the business to highlight strengths and identify any issues or weaknesses that could put off a buyer. 

Make sure there is appropriate management without you, underpinned by a sound operational and technology structure. There needs to be a strong business plan and a track record of profitability. 

Make sure customer relationships are solid and there is demand for your product/services. Try to resolve any tax or pension issues, and ensure environmental, health and safety, regulatory matters, legal and contractual arrangements are in hand.

Timing is critical and even if economic conditions aren’t great it’s vital you can show the business platform is stable and identify expenditures a buyer will likely not incur so the underlying profitability of the business is clear.

The key is to bargain from a position of strength.

It’s normal to negotiate over price and risk allocation to maximise value, and this may include deferred consideration or earn-out targets. The key is to be bargaining from a position of strength. 

There’s no substitute for proper professional advice. This is one of the biggest business decisions you’ll take so give yourself the best possible chance to achieve the outcome you want. If you need any help please call.

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