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Selling your business? Here’s what you need to know…

Selling your businessSelling your business is not usually a decision made lightly and the sales process is never simple. However, the rewards of doing so can be great, and ultimately, life-changing.

It can be seen as a daunting task, so, if you’re selling your business and need some assistance, talk to the experts, and sell your business with BCMS.

When it comes to selling a business there are many aspects to consider. We’ve collated a few that we believe are the most important, to help make sure the sale of your business runs smoothly.

Prepare your business

When you’ve made the decision to sell your business, one of the first steps you should take is to prepare your business. Preparation is crucial and the sooner you start making preparations, the better our chances of being able to sell quickly and at a good price.

It is advised that selling your business will be required that you have at least three years of trading accounts for the buyer to review. The more time taken to prepare such paperwork will show potential buyers how professional and organised your business is.

Buyers want profits, not revenue.

Prospective buyers will notably be impressed by high revenue figures. Their main interest, however, will lie in the profits a business receives. Turn your attention not from producing high revenue figures but instead showcasing how much profit your business makes.

Honesty is the best policy

It is understandable that all businesses have positives and negatives, and most experienced investors will be understanding of this, it is, therefore, important to be completely upfront and honest from the outset. Transparency is key and as long this is apparent from the very beginning there is less risk of the deal falling through because the buyer uncovered something during due diligence. Be honest and upfront and manage the expectations of the buyer from the start.

Complete due diligence

The due diligence process will normally take place once you have found an appropriate buyer and both parties have agreed a price before the letter of intent is signed. The potential buyer will complete a comprehensive examination of the business. The length of time that due diligence can take will depend entirely on the business itself and the complexity of that business.

Get a professional advisor

The process of selling a business is not a simple nor quick task, and for some, the process can be overwhelming, it’s, therefore, advisable to seek help from the experts and hire a professional advisor.

Hiring a professional advisor will not only take some of the stress away, it can also help to ultimately ensure you get the best possible outcome from your sale. A knowledgeable and skilled specialist can guide you through coaching where possible on what to do and say when meeting potential buyers. It will also ensure that communication is maintained throughout the process and they will be able to negotiate the most favourable deal.

Recently sold your business? Share your tips with us.