Exiting a Business

Overview

 

We are advised by business analysts that there are more businesses being sold now or preparing to be sold over the next few years than have been sold in history. 

 

You should bear this in mind when you are preparing to sell your business.  It is vital that you have the guidance and support required to ensure you get the maximum value for your business asset.

The money raised by selling your business will be vital to your future aims. Whatever method you are using to sell, either trade, management buy-out or other means of realising your business’s accumulated worth should be carefully planned and implemented.

 

Valuation

 

Valuing and selling a business is the subject of a separate article on this site, and you should read that in conjunction with the information in this section.

 

Importance of the owner to the business

 

If you, the owner, are the most important asset in your business, this will devalue its worth.  If your business relies on the owner for day-to day input you are not maximising the value of the business in readiness for sale.  You need to have the systems and processes that make an effective business model in place and working efficiently and profitably without your involvement.  This ensures maximum value when it comes time to sell and exit.

 

Succession management

 

There are decisions to be made on succession management before sale.  Is it the intention of the owner to stay on in the business to manage it – if not, is there a second tier of management who can carry on running the business for the new owners?   In the event of a trade sale, do you want to play a continuing role?  If so, what sort of role?

 

Planning for exit

 

Having considered these issues one of two things usually happens.  Either the company will proceed to find a buyer(s) for the business or else they develop a plan to cover what needs to be implemented to increase the value of the company to achieve an agreed amount.

 

These steps need to be implemented carefully over a period of time. Rushing this process and making hasty decisions will not produce the desired result.  You will only achieve the best selling price by careful planning. 

 

Signa offers invaluable assistance by offering you an independent, objective observer to guide you through the maze of selling your company and discuss and review the best options available.

 

Engaging Support

 

Signa offers you advisers who have been through the process of building up and eventually exiting their own businesses. 

 

They understand at first hand the key stages in the selling process and, very importantly, the systems and processes which need to be in place before the sales process starts. This helps to ensure that maximum value is derived from a business sale.

 

We have identified the most important issues you may be facing if you wish to Exit Your Business in the links below – but please do explore the full Expertise menu for a more comprehensive overview of the business disciplines we routinely deal with.

If you would like  more information on how Signa can help please call us on 01494 562738 or send us a message.

Signa Ltd

15 Battingswood Gardens

Naphill

Bucks HP14 4SR

Tel: 01494 562738

info@signabusinessadvisers.com

Print Print | Sitemap
© Signa Business Advisers Ltd 2012