Managing your expectations when selling a business
Working as I do in the SME / owner-managed sector of the market, where retirement is often the prime driver of succession planning, I see many instances where vendors become somewhat over-optimistic about what can be achieved.
A common theme includes shareholders being misinformed about the value of their business, which leads to a focus on achieving a desired sale value rather than a realistic outcome.
Here at PM+M, we typically advise our clients to think like buyers and ask themselves, “If I were buying my business, how much would I want to pay?”
Making sure that our clients have a truthful and clear picture of how their business is likely to perform in the marketplace is vital to us. With a focus on delivering quality advice to help clients achieve the highest sale value possible, PM+M works in partnership with shareholders to prepare their business for sale and devise strategies on how best to do so.
If I were buying my business, how much would I want to pay?
With specialists across all areas of accounting, tax, financial planning and business advisory, we look at the bigger picture and spend time analysing the business in its entirety (current financial position, sales pipeline, client base, market and so on), as well as considering each shareholder’s future expectations of spending and lifestyle. By understanding this equation, we can understand how the value of the business fits in.
As ever, the first step is to get impartial advice from an experienced specialist. From here, objectives can be set and strategies can be put in place to help you achieve your exit goals in the most efficient and valuable way.
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