Many, if not most business owners, at some time or other have thought that their business is going to be their pension. The business owner’s intention is to sell the business at some point in the future and live off the proceeds.
There are 2 big questions that a business owner needs to find the answers to.
- But, how easy is that is that going to be to pull off?
- And what needs to happen so that you can get the money out?
The key to succeeding is getting you business ready for sale. So, what needs to happen to not only sell the business but also get the best price.
How are you going to SELL your business?
Be ready like you are selling your house
Like selling your house, you need to present your business at its very best to potential buyers. It is important that all your financials and record keeping are right up to date and all the important business processes within your business are fully documented.
Anything within your business that you have neglected over the years should now be given a good tidy up. If it’s no longer relevant to business get rid of it, as it is just extra baggage that may put a buyer off. This will make selling the business more attractive to a buyer and will ultimately increase the value of your business. You need to be running a tidy efficient ship.
Once you have highlighted any areas that need to be worked on, you need to create a pre-sale improvement plan to deal with these issues. This doesn’t have to be costly or a long-term project. Try and look at your business as if you were going to buy it. How critical could you be?
Get your paperwork in order
Make sure that have all the official business paperwork together in a professionally presentable form. A business with tidy paperwork goes a long way to impress buyers. You need to have all the documentation such as licenses, Certificates of Incorporation, Memorandums of Association and property leases, that you will add to your valuation report. And of course, it all needs to be up to date.
Get your team ready
It is most likely that you will need the services of a professional business seller to help you with your sale. First, you will need to find the right professional to provide you with a valuation, promote your business for sale and deal with any communications between you and the buyer.
You will also need your accountant and a solicitor to help you with the legal and financial aspects of the sale.
Keep the sale quiet
Strange as it may sound, telling as few people as possible in important. Only share your proposed plans with key people involved in your business and only when necessary. You could consider sharing your sale plans with your key members of your team, but only if they agree to sign a non-disclosure or confidentiality agreement.
If word gets out then you could jeopardise the sale value of your business or worse still, you start to lose valuable staff that an important part of your business.
Are you thinking of selling or have already sold your business? Do you need financial planning advice on how to manage your money?
Contact us to today. We can advise you on your current situation and let you how best to plan for the future.
If you would like to talk to about financial planning, please get in touch for a no-obligation meeting. Go to our website www.miadvice.co.uk and contact us via our “Get in touch” form on our home page or Contact Martin Dodd on 01902 742221.
Email us at firstname.lastname@example.org
It is advisable to take advice from a professional financial adviser when making major financial planning decisions.
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This article has been prepared in good faith and based on Midlands Investment Agency’s understanding of the law and interpretation thereof at the time of creation. The contents should not be regarded as specific advice and we always recommend that specific advice is sort from a qualified professional. No responsibility can be accepted by Martin Dodd or Midlands Investment Agency Ltd., for any loss that may occur by a person acting or refraining from acting on the basis of this article.