Preparing Your Business For Sale
An exit strategy is a plan for closing your involvement in a business. There is lots of ‘tidying up’ required first and preparation is key! A well thought out exit strategy will create a smooth process and increase the selling price.
Get your financial records in order.
The aim is to leave your business in the best shape for the new owner, meaning the books should be in good working order. Prospective buyers will essentially be looking for whether your firm has traded profitably, meaning you will need to produce reliable statements that track company progress with enough detail on areas such as current debts, asset valuations and forecasts for the future. Documents like these should show any impending buyers the evidence they will need to prove the worth of your business.
At Seymour Taylor we have a wealth of experience working with businesses on their exit strategies. Our team can support and advise you throughout the process from start to finish.
Remove yourself from the picture- No matter how hard it may be.
If the business needs you and your input to survive it will have very little value once you leave. We understand that the business may have been your brain child but think about removing yourself from the running of the business and get a strong management team behind you to enhance the company.
Try to cut down on customer contact as much as possible to allow your staff to have greater responsibility and recognise their capability in decision making! This will aid the future success of the business as you can see how they can work without you on the scene all the time.
Have procedures and processes written down step by step.
This will not only help the new managers or owners it’ll encourage potential buyers as they will be able to see a full picture of how the business works on a day to day basis. Along with this you can add job descriptions and templates for tasks that may be done multiple times, making the potential buyer’s life easier once they have acquired the business.
Have you thought about adding value to your business?
This could be as simple as updating the systems currently in use to stay in line or ahead of the industry, it will also make your business more appealing to prospective buyers by enhancing IT equipment and relevant technologies. However, consider the timing of these changes. A problem you may face is that any improvement you make to add value to the business will need to be set in place as early as possible, otherwise your records may not reflect the historical trend that would be reassuring to buyers.
Although it may seem like an exit strategy plan takes a long time to prepare, it’ll be worth it in the long run as it will attract more buyers and help you reach the sale price you want to achieve.
For advice on being prepared and developing an effective exit strategy get in touch with us at Seymour Taylor for a free no obligation quote today.
This blog is for guidance only, professional advice should be obtained before acting on any information contained herein.