Selling a business rarely happens overnight.
Too many owners only seek advice once they’re ready to sell. In reality, a little planning in advance can make a significant difference, not only to the eventual value of your business, but also to achieving a smoother, more controlled transition, on your terms.
Whether you’re hoping to sell in twelve months or five years’ time, there are a number of practical steps you can take to make your business more attractive to buyers and better prepared for a successful sale.
Start planning early
Many owners only begin preparing their business once they’ve made the decision to sell.
The earlier you start planning, the more opportunity you’ll have to strengthen your business, address potential concerns and present it in the best possible light when it eventually comes to market.
Good preparation not only helps build buyer confidence but can also lead to a smoother, more efficient sale process.
Think like a buyer
One of the most valuable exercises is to look at your business through the eyes of a buyer.
Ask yourself:
- Would I buy this business?
- What would concern me?
- Where are the opportunities for growth?
- How dependent is the business on the owner?
Understanding how buyers are likely to view your business can help you focus your efforts where they’ll have the greatest impact.
Get your financial information in order
Buyers will want to understand how the business has performed historically and how it is likely to perform in the future.
Having accurate, up-to-date financial information readily available helps create confidence and enables buyers to make informed decisions.
You should also be prepared to explain any one-off costs or unusual items that may have affected recent trading performance.
Reduce owner dependency
Many owner-managed businesses rely heavily on the owner.
Where possible, consider whether responsibilities can be delegated to key members of staff and whether important knowledge, systems and customer relationships can be shared across the business.
A business that can continue to perform successfully without the owner’s day-to-day involvement is generally viewed more favourably by buyers.
Review your customer base
A loyal customer base is a valuable asset.
However, if a significant proportion of turnover comes from one or two customers, buyers may perceive a higher level of risk.
A well-diversified customer base, together with a history of repeat business, is generally viewed more favourably by buyers.
Presentation matters
Whilst buyers are primarily interested in future profitability, first impressions still matter.
Well-maintained premises, organised records and properly maintained equipment all contribute to the perception of a well-managed business.
Preparation pays
Preparing early allows you to address issues before they become obstacles, strengthen the areas buyers are likely to scrutinise and present your business in the best possible light when it eventually comes to market.
Whether you’re planning to sell next year or several years from now, taking advice early can help you make better decisions and achieve a stronger outcome.
Thinking about selling?
Every business is different.
Whether you’re planning to sell next year or simply looking ahead, understanding how buyers are likely to view your business is one of the most valuable steps you can take.
Our business valuation & exit review provides an independent assessment of your business, together with practical recommendations to help you understand its potential value and identify opportunities to maximise it before an eventual sale.
We advise owners of established businesses across Oxfordshire, Buckinghamshire and the Thames Valley, including Milton Keynes, High Wycombe, Oxford, Wokingham, Beaconsfield, Newbury and Didcot, together with the surrounding areas.
Find out more about our business valuation & exit review, or contact us for a confidential, no-obligation discussion about your plans.