Showcase scalability to secure a sale

Despite a short supply of traditional bank funding, there’s currently a lot of demand from private equity houses and strategic buyers, with mergers and acquisitions some of the most popular deals in 2015.

By Gill Molloy, group tax director, Champion Accountants

Whilst organic growth can be achieved in a number of ways, it’s not the fastest method to expand. Investing in a business or buying outright is a far quicker option that can help to avoid a number of growth challenges.

Starting early, at least a few years in advance, helps to get your business in proper shape. Demonstrating that it’s a viable model even after your departure as well as its scalability is also crucial as buyers are particularly interested in growth potential.

Negotiating is where the experience of your advisor comes into its own, with the best sales requiring a combination of coordination, predictability and speed. Some entrepreneurs think they’re superb negotiators, yet selling a business, especially your own, is time-consuming, intense and extremely personal. It’s also important to remember that something is only worth what another is prepared to pay for it.