Planning for a smooth sale

Selling your business can be time consuming, stressful and a major distraction from the day job. So what can you, the business owner, do to make the process easier for yourself?

By John Jones, partner and head of corporate finance, Beever and Struthers

Planning beforehand

Every business owner will eventually step down and pass on the reins.

The key to exiting with the best possible outcome is upfront planning, ideally well in advance of the decision to sell. Assessing the current position of the business and identifying opportunities to add value can never be done too soon.

Even simple things like formalising customer contracts or supply arrangements, tidying up loose ends in ledgers, disposing of surplus assets or reviewing stock, contribute to a smoother sale and less opportunity for the agreed price to be diluted.

Decisions

Each owner’s exit strategy will be personal and depend on their objectives. Some want no further involvement, while others look to release capital and gradually reduce involvement.

Each strategy comes with its own issues, which is why appointing the right advisor to guide you through the process is vital.

While a successful entrepreneur knows their business inside out and understands its market, they’ll also understand that specialist skills and experience are required to generate the best return when the business is sold by maximising sale proceeds, minimising tax liabilities and completing the deal efficiently.You’ll need to know how to value your business and which option is right for you and your firm – a specialist advisor can address any such uncertainty while helping to maximise returns and minimise liabilities when selling your business.