top of page

Ready to sell your business?

Existing your business is a big commitment. When you decide it's time to leave behind everything you have built, it's important to have a plan of action and a clear pathway to your end goal. This means creating a long-term exit strategy - a plan that is aligned with your goals, aims, financial commitments and sale options.

Selling a business is complex with many different elements that have to be considered. So, this plan will take some time to create.

Here are some fundamentals to think about when writing your plan:

1) Get the business valued

Business valuation is a complex measurement. It can be influenced by over 10 separate factors, and some are difficult to quantify. A change to one of these areas such as skilled members of the team resigning, can have a significant impact on the sale valuation and ultimately the size of profit you, and any other shareholders, will make.

Getting a valuation early in the process will enable you to also focus on the factors negatively impacting the sale price, so improvements can be made in advance of sale, and maximising the factors that are positively impacting the sale valuation.

2) Know your sale price

When you have the business valuation you can create a plan to maximise your sale price. As the seller (vendor), you need the right information to enable you to come up with a reasonable asking price for your business. Your sale price isn't just driven the market and should consider your walk away number (the amount that would make you consider if selling is feasible).

3) Succession Planning

Every business needs a safe pair of hands to effectively lead, guide and develop the business. Regardless of how you exist your business, with an open market sale, or family succession, thinking about who will take over is a vital part of your exit strategy.

It could be that your intended buyer will take on the owner-manager role. Or it could be that a current member of your executive team is ready and willing to step into your shoes. Make sure you’re clear about who the new boss will be, and how (and when) this person will succeed you as the leader of the business.

Having multiple options will ensure you can plan effectively for whichever outcome becomes most suitable.

4) Timelines

Selling a business is a lengthy process. Preparing for a sale can begin months and even years before the proposed sale date. So, it is important to be clear about your exit strategy and the key dates along the timeline.

A five-year exit strategy is common, and you should allow at least two years to complete the process from beginning to end. Selling up may seem like the final scene in your business play, but in fact it’s only the beginning of a long and protracted final act. The more you can do to plan each step of the exit, the more successful your final sale will be.

If you think now is the right time for you to start planning the exit of your business, then please get in touch.


bottom of page