When you sell your business, should you continue to work there?
It’s an important aspect to deliberate during the sale process, and while there’s no one-size-fits-all answer, there are several factors to consider. It depends very much on your situation and the necessary terms of the deal.
Here we look at all the key considerations so that you can make the best decision for you and your future, and that of the business that you’ve spent years to build.
Firstly, it’s essential to understand the buyer’s expectations, which you will establish during the negotiations. Many buyers prefer the former owner to stay on board for a transitional period to ensure a smooth handover. This period can vary from a few months to a couple of years, depending on the complexity of your business and the buyer’s familiarity with the industry.
For buyers, having the previous owner involved can provide a sense of security. You, as the seller, possess intimate knowledge of the business operations, key relationships, and industry nuances that can be invaluable during the transition. Your continued presence can help maintain stability, reassure employees and customers, and preserve the business’ value.
Of course, your reason for selling will always impact how important this is to you, but in most cases understanding the buyer’s perspective will help you get the most value from the sale.
If you do stay on, know your role, and make sure the new owner does too.
Will you be a consultant, a part-time advisor, or will you remain in a more hands-on role?
Clarity in your responsibilities will prevent potential conflicts and ensure that both you and the buyer are on the same page.
Decide and agree on how long you will remain in the role too.
Selling a business can be an emotional experience. Continuing to work in the business post-sale can ease the emotional impact of the transition, providing a sense of continuity and closure. You can phase out your involvement over time rather than dealing with an immediate exit. However, sometimes an immediate exit could be best, depending on the situation.
An important consideration.
From a financial standpoint, staying on can also be advantageous. You could choose to structure the deal to include earn-outs or performance-based incentives, where you receive additional compensation based on the business’ performance post-sale. In such cases, you may want to remain involved to help ensure the business meets the set targets.
Consider your long-term goals. Do you have a new venture you’re eager to start? Are you looking forward to retirement, or perhaps you want to explore other interests? Your future aspirations should heavily influence your decision to stay or leave. Your financial position may also impact your decision.
Ultimately, whether you should continue working in the business you’re selling post-sale is a decision that you need to make based on a combination of factors—your personal and financial goals, the buyer’s expectations, and the needs of the business.
By carefully considering these elements, you can make a choice that benefits both you and the new owner.
At Business Partnership we can help you throughout the entire sales process. From a free valuation initially to advising you throughout the sale and finding you the ideal buyer.
There’s never any obligation and it’s always confidential. Give us a call on 01606 535 024 or find your local partner here.
Deciding to sell your business is a big decision, both in terms of being mentally ready to move on to pastures new, and making sure you get the right deal for you. Years of hard work and dedication come down to this. This guide will look at some of the factors you need to consider, how to navigate the complexities of the sale process, and how you can make sure you do avoid the common pitfalls sellers can fall foul of.
Here’s how you can give yourself the best chance of achieving a smooth and successful transaction.
One of the biggest mistakes business owners make is not preparing adequately for the sale. This involves more than just deciding to sell; it requires detailed planning and organisation. Begin by ensuring your financial records are in order and up to date. Prospective buyers will scrutinise your financial health, and any discrepancies can derail the sale.
Additionally, gather all relevant documents, including contracts, leases, intellectual property records and statutory compliance records. Also question whether preparation needs to extend to your team as well – consider when the best time is to inform them that you’re selling and which team members need to know at which time. It’s vital to maintain operational stability, but there will likely be certain people who need to be involved to help you prepare from an early stage depending on the size of your business.
Overestimating the value of your business is a common pitfall that can lead to prolonged sale processes and frustration. It’s crucial to have a realistic valuation.
Get a free valuation today here from us.
We can help you assess various factors, including market conditions, financial performance, and growth potential. Securing the right deal is difficult, and it all starts by making sure that the asking price is right.
The sale process can be lengthy and demanding, often taking several months to find a buyer. During this period, it’s vital to continue running your business as usual. Neglecting day-to-day operations can lead to a decline in performance, which won’t help you attract potential buyers. Additionally, even after a potential offer for your business is accepted, it’s crucial to maintain focus and keep driving the business forward until the transaction has completed.
Have a think to see if you can delegate any tasks to colleagues whilst you focus on preparing the business for sale and the sale process.
Not all interested parties are suitable buyers. It’s essential to qualify potential buyers to ensure they have the financial capability and genuine interest in acquiring your business. Qualifying potential buyers saves time and money whilst making sure that you can give sufficient attention to the right potential buyers.
You can vet interested parties by requesting proof of funds and holding preliminary discussions to assess their seriousness and capabilities. You need to try and avoid any potential deal falling through down the line, especially if it’s taken months of work to get to that point. Vet potential buyers as early as possible.
Maintaining confidentiality throughout the sale process is crucial. Premature disclosure of your intention to sell can unsettle employees, suppliers, and customers, potentially harming your business. Again this comes back to taking the time to consider when the right time is to advise specific employees, as well as relevant stakeholders – which could be waiting until after the sale in some circumstances.
Negotiation is a critical component of the sale process, alongside making sure you’re actually negotiating with the right buyer in the first place.
It pays to get a professional in your corner as soon as possible to deal with both of these aspects – the search for your ideal buyer and the negotiation. Not to mention the rest of the complexities of the sale process.
Sell your business with Business Partnership.
At Business Partnership we can provide you with a free valuation today.
There’s never any obligation and it’s always confidential. Find out what we could achieve for you and how we can help you every step of the way.
Call our team on 01606 535 024 or find your local contact here.
Thinking about selling your business? It’s crucial to take the right steps to prepare, as this can significantly enhance the value of your business and ensure a smoother sales process. Whether you’re planning to retire or looking for new opportunities, following these seven steps will help you get your business sale-ready.
The time required to prepare a business for sale depends on your goals and how soon you want to sell. If you’re aiming to exit in a few years, you can take more time to boost your business’s value and gradually delegate responsibilities to ensure the business can operate without you. For a quicker sale, you may need to streamline the preparation process and focus on targeting the right buyers.
Start by identifying what you want to achieve from selling your business. Is your priority securing a specific price, ensuring a smooth transition for your employees, or completing the sale within a certain timeframe? Having clear goals will shape your strategy. It’s also essential to have conversations with business partners, family, or key employees to align everyone on your goals for the sale.
Before you put your business on the market, address any issues that could scare away potential buyers. Buyers will scrutinise your business, so resolve any legal disputes, tidy up company records, and ensure you’re up to date on payments. Unresolved problems could derail a deal, so consider involving legal or financial experts early to help iron out any concerns.
One of the first things potential buyers will ask about is your financial performance. Ensure your accounts are accurate and up to date. Be prepared to answer key questions, like your business’s return on investment, profit margins, and details about key suppliers and customers. It’s wise to consult your accountant to ensure everything is in order, as clear, organised finances build buyer confidence.
Knowing your business’s value is crucial. A professional business broker can provide a thorough valuation based on your financials, market conditions, and growth potential. This will give you a realistic idea of what your business is worth and help set an achievable sales price. The valuation will also highlight areas where improvements can be made to boost the sale price.
Based on the valuation, there may be opportunities to enhance your business’s value. This could mean upgrading equipment, investing in staff training, or improving systems to make the business less dependent on you. Strengthening your supply chains or customer relationships can also increase value. The more time you have before the sale, the more improvements you can make.
Once your business is prepared for sale, you’ll need a strategy to attract the right buyers. A skilled broker will help you market your business effectively, presenting it in the best light and targeting buyers who will see its value. Sales particulars should be carefully crafted to showcase your business’s strengths without giving away sensitive information. A clear, focused marketing plan will attract serious buyers and help secure a favourable deal.
The sale doesn’t end when a buyer is found. You’ll need to ensure a smooth handover by sharing your knowledge and preparing the business to operate without you. This transition period is key to maintaining business continuity and ensuring the new owner’s success. Your broker can guide you through this process, ensuring the handover is seamless and that the business is set up to thrive under new ownership.
Whether you’re just starting to think about selling or actively looking for a buyer, having an experienced business broker by your side is invaluable. A broker can guide you through every step, from valuation to marketing to the final handover. At Business Partnership, we’re here to help you navigate the complexities of selling your business and maximise its value.
(Originally posted 2021. Updated 2024)
Selling a business is a significant decision that requires meticulous planning and preparation. You may have been planning your exit for years or very quickly decided that you want or need to explore the sale of your business. Either way, there are crucial steps that you need to take if you’re going to first and foremost attract a buyer and then make sure that you’re in a position to negotiate the most lucrative transaction you can whilst securing agreement to the terms of sale that you want.
Here we’re going to look at how to navigate the process of preparing a business for sale so that you can get the best outcome.
Determine your reasons for selling and evaluate the ideal timing. Consider market conditions, business performance, personal circumstances, and your readiness to transition out of the business and what life after sale looks like for you..
Potential investors/buyers will always want to understand the current state of play and how the financial position of the company has changed over the past three to five years.
Get ready to be able to present income statements, balance sheets, company accounts, tax returns, cash flow statements, and any pending or recurring expenses. Developing a weekly management report of key performance indicators is also a key step.
Engage a professional business appraiser or consultant to conduct a valuation. Understand the true, present value of your business as early as you can. Seek the assistance of a professional who can not only provide a current valuation, but who can assist you with the rest of the process from here. A professional business broker will work with you to understand your current position and your objectives. They will be able to help you create a complete plan to get you from where you are now to where you want to be when it comes to completing the sale.
Make your business as profitable and efficient as you can. Look to pay off any outstanding debts, streamline operations, and resolve any legal or compliance issues to present a clean, uncomplicated financial picture to potential buyers.
Refresh your ‘front of house.’ Does your branding, marketing materials or premises need a facelift? It’s important to make sure that how you present the entire business is in line with what potential investors will expect and your strategic plans.
It may be that you’re thinking ahead of time and planning to sell in three to five years. This gives you an opportunity to prepare perfectly. Redefine your image, create new marketing and sales campaigns to facilitate growth, and freshen up the entire operation. Get all the necessary foundations in place so that a new owner can just hit the ground running. Do everything you can to maximise your business’ value and all-round appeal to potential buyers.
Document standard operating procedures, key processes, systems, and anything else that you need to showcase how your business operates day-to-day. A potential buyer will want to see a smooth, seamless operation at work.
Intellectual property can be a huge factor when it comes to building your value too. Organise all the paperwork you have relating to IP rights, trademarks, patents, copyrights and any other protections you have in place that could lead to future realised value for a buyer.
If you haven’t already been working with an advisor since your initial valuation, now is the time to get your team together to manage the sale and get you the best deal!
You will want an experienced business broker in your area to get involved at this point. Depending on the size and type of your organisation, you may also need them to work closely with your accountant and any relevant legal professionals.
Your business broker will:
At Business Partnership we can provide you with a free valuation today.
There’s never any obligation and it’s always confidential. Find out what we could achieve for you and how we can help you every step of the way.
Call our team on 01606 535 024 or find your local contact here.
When you’re planning to exit, merge, grow or make future plans for your business, understanding what it’s worth is likely going to be your primary concern.
When it comes to valuing a business correctly there’s no simple formula that will give you a definitive value, as many factors are in play. In this article we are going to explore the most common approaches to valuing a business, what can impact the number, and how you can use this insight to plan your next move.
Valuing a business requires proper consideration of not just past performance but also current conditions and likely future potential. Of course, potential risks that could be on the horizon play a part too. Valuing a business accurately therefore requires a holistic approach and using rule of thumb and average industry values will often provide a mis-leading answer.
Creating an accurate valuation allows you to make informed strategic decisions regarding expansion and diversification or if you’re looking to secure the sale of the company.
Exiting a business is a process. There are various steps to go through if you’re going to achieve maximum. Understanding your current valuation compared with where you want it to be is the start of the process. It will help you understand what changes you need to make before you sell in order to get the best price and the level of interest that you will need.
Investors will want to scrutinise your valuation assumptions to assess their potential return on investment.
There are two main income based methods used:
This approach heavily focuses on cash flow and how well equipped the company is to generate it for new investors in the future.
This approach takes a look at the corporate landscape and looks to compare the company against similar organisations based on revenue, profits, or assets.
Average market multiples come into play here. This allows potential investors to compare companies on a like-for-like basis. This could include looking at earnings, book value, or simply headline sales figures. The risk is that unless your business is average you may under estimate its value.
Here, the value is derived from the company’s assets and liabilities. This includes the book value of assets or the liquidation value, considering what the company owns versus what it owes.
If the company owns a lot of high value machinery or property this can be a popular avenue when it comes to valuing the business as that represents almost guaranteed value, unlike future sales forecasts.
Revenue trends, profit margins, cash flow, and stability over time significantly impact valuation. Consistent growth and recurring revenue are valued by investors and therefore can result in a higher valuation.
No matter what you’ve achieved in the past or how solid the situation looks on paper, the market is the market and it can either help you or prove to be a huge hindrance.
Economic, social and political factors all have a constant impact on your outlook. An investor will likely want to know how these pressures could impact the future of the business and how changes in the level of volatility could affect operations.
What do you own?
Unique assets, patents, intellectual property? Some other kind of competitive advantage?
Of course, this can play a massive part in your business valuation, even if you have low revenues. Potential can be pivotal if it’s protected.
Which brings us on to risk.
Assessing risks associated with industry-specific challenges, market competition, regulatory changes, and management stability can impact your company’s valuation.
Investors and buyers of businesses like stability matched with potential.
Business valuation is a nuanced process, there is no one size fits all.
To understand exactly where you are, you need to talk to an expert who can assess your situation from all angles.
This is especially important if you’re looking to sell as they will be able to help you maximise the value of your business whilst working to a timeline that suits your needs.
At Business Partnership we can provide you with a free valuation today.
There’s never any obligation, it is always confidential, simply find out what we could achieve for you. Call our team on 01606 535 024 or find your local contact here.
Establishing an exit plan early in the life of your business is crucial if you are to extract the highest value from your investment of time and money. At Business Partnership, we believe a good exit plan will allow entrepreneurs to secure a high return on sales, whether the business is meant to provide an income until retirement, or you intend to sell your company sooner rather than later.
Most business owners do not understand the real value of an exit strategy and will often wait until something happens, or they want to sell their company before creating a plan. However, an exit plan is invaluable if you want to be in control of your future and extract the highest amount of money from your business’s sale. So, here are the top ten reasons why you should start working on that exit strategy sooner rather than later to eliminate any risks to your business.
Having an exit strategy in place will allow you to plan for your business’s future, help establish your goals, and create strategies for achieving them. For example, it will enable you to be in control of hiring the person who will come in and take over from you. You also have the foresight to know when to hire full-time employees or seek out freelancers.
Put yourself in a buyer’s position for a minute. You never bid higher than the estimated price of something unless you have to. As a seller, having an exit strategy will help you evaluate whether the presented proposal is good enough for your business.
An exit plan will help you gauge what your business is actually worth. Not the back-of-the-envelope guesstimate, but what you could potentially receive if you decided to sell. It will give you a thorough evaluation of your company’s financial position, intangible assets, potential buyers, and the respective market conditions will help you determine the value of your business.
The perfect time to sell is typically when your business is doing well; the financials are trending upwards, sales are booming, the team is strong and demand is high. However, with the current economic uncertainty, this is hard to predict. An exit strategy will help you identify a time to sell your business. With a definite period of operation in mind, you will be able to focus on developing the business and preparing it for sale.
Having an exit strategy is a sign of fiscal foresight and responsibility that makes your business more attractive to potential buyers. It shows you have set clear visions and goals for your company and you have dedicated your time and resources to ensure you achieve those goals. An exit plan also tells buyers that you are committed to selling the business and will not change your mind during transactions.
When you run a business, it is often your world, and it can be hard to let go of something you created. Therefore, it is understandable if you are having second thoughts about leaving. However, an exit strategy will help you prepare for departure by reminding you that you have achieved everything you set out to do.
Whilst we are currently in a buyer’s market due to the knock-on effects of the pandemic, an exit plan will help you pivot and adjust when you sell your company to achieve the best results. When the time comes, you will be well placed to exploit a strong seller’s market and receive the maximum offer for your business.
Exiting your business can be tedious, time-consuming, and expensive, as all the paperwork must be done from scratch. However, with a good exit plan, you will have completed all the proper documents and prepared yourself for the admin required to sell your business.
Your exit plan should consist of how much your business is worth and reasons why it is and will continue to be profitable. With this information present, you can negotiate and convince the buyers that they will yield high returns from your small business.
Whether you are leaving your business to start a new venture or looking to retire, the whole point of preparing for your exit is to give you the time to plan for life after the sale. Having an exit strategy in place will allow you the best opportunity to exit your business with the maximum value. So, think of an exit strategy as a blueprint for your future. With it, you can set goals for your business and plan ways to achieve them.
If you’d like to talk to someone about your exit strategy, call 01606 535 024 or find your local office.
Selling a business can be a big step in someone’s life and one that needs careful consideration. The prospect of valuing your business can be daunting, especially if it is not making a profit, but there are plenty of resources to help you. So, here is some advice from national business broker, Business Partnership, on how to avoid valuation traps and find the value of your business, no matter your situation.
When valuing a business for the open sale market a multiple of net profit is often the most important guide. That multiple can very much depend upon the strength of the brand. The other matter business owners have to consider is how much of that sale price ends up in your pocket as the owner. A business sale will also incur other fees to any professionals you use – broker, solicitor, accountant etc – and maybe costs for a refurbishment to bring a retail site up to latest brand standards. All these costs should be detailed.
When it comes to valuing your business, the first thing to consider is whether the business is performing well or not. Determine the true net profit of your business by bringing your accounts up to date. Then get both annual accounts and year to date management accounts to show a buyer what the profit is. It is hard to sell a business without these figures. “Trust me we are making money” will not work for most buyers and certainly not their funders.
A broker would then apply a multiple to this profit. The multiple depends on several factors, including the brand strength, stability of the business’s cash flow and the forecasted business growth. A profitable business is usually valued at between one and five times the net profit. An existing and already profitable business has that income, so remind your potential buyers. Remember, business resale valuations are never exact, and you may have different expectations for the business, so the next step in the process is negotiation.
Unfortunately, not all businesses succeed so how do you value one that is failing? A good place to start is to find out the total cost of similar businesses in your sector and any required investment in equipment or refurbishment of the building. This is an entry point for anyone interested in your business. And if you have a retail business, the good news is your unit may be more valuable than you realise, for example good contracts and well-maintained equipment or other similar assets can help the price of a business.
If, however, your business is growing and the turnover is increasing but currently unprofitable, you will need to provide some forecasts to show that the future is looking better. Research your industry and finding out what other struggling businesses have sold for. Speak to a professional insolvency practitioner who can advise on this.
Whether it is because someone is planning to take a step back, or ready to let go and try something new, almost every business owner reaches the stage where they want to sell their company. It is crucial to carefully design your business sale that you do not set unintended valuation “traps”, which could hinder the effectiveness and increase the costs of your transition.
When you have spent years of hard work and finances building your business, it is often difficult not to see it through rose-tinted glasses. However, look at it from a buyer’s perspective. Forget that you know everything. Assume your buyer knows nothing. Ask yourself, if you were buying the business, would you be offering a top price or discounting it?
Another pitfall in the sales process is thinking your business is more valuable than it really is because it has a high turnover. Unfortunately, this is not the case. A business’s value comes from profits, not turnover. So, when setting an asking price, make sure you factor this in; otherwise, the likelihood of selling your business is massively reduced.
Try not to be overhasty when accepting a higher-than-expected valuation. If a great valuation is provided by a broker, question how it was arrived at. If you are offered a price which seems too good to be true, it often can be unachievable.
When it comes to having your business valued, you often have the chance to get either a free valuation or a paid-for valuation. Both have their place in the business world, but a paid valuation will go into much more detail, which is far more beneficial when it comes to something important, like selling your business.
Finding the value of your business is an intimidating process if you do not know what you are doing. So, consult an independent business broker for advice when it comes to selling your business. It is also worth discussing the resale with an accountant or lawyer with experience in the franchise industry. They will be impartial and able to offer support during the negotiation discussions.
By following these steps, you will be able to find the value of your business, no matter your situation. For more advice on buying or selling a business, please get in touch with your local Regional Partner.
When the time comes to sell a business, most owners would probably say that it’s their goal to sell or transfer their business in order to fund their retirement or finance the next stage of their career.
Determining the market value of a business is one of the hardest to put a price on, so owners should take the time to understand what their business is really worth and put themselves in the buyer’s shoes to find out what they want.
Selling a business will probably be the largest financial transaction many owners will carry out so it’s even more important that they get the best price for it. Sometimes, all you need to do to see your business rise in value is to wait for the right market to sell it in, but there are many more proactive ways to increase the value of your business prior to putting it on the market.
Understanding your company’s value becomes increasingly important and it depends on a variety of factors, such as past profitability and asset value. In financial terms, the value of any business is the current worth of its future cash flows for the prospective buyer. There are also intangible factors to consider, and often provide the most value, such as customer goodwill and intellectual property.
You only have one opportunity to sell your company so it’s vital that you make your business as appealing as possible to buyers and they feel they can receive a return on their investment. Here are some factors that will help increase the value of your business:
Before talking to potential buyers, you will need to be clear on the contracts you have in place, whether its the lease on the building, customer or supplier contracts. It might also be worth renewing any key contracts as this might make the business more valuable and check that customer contracts allow for change of ownership – otherwise they may need to be rewritten or a clause added to ensure they’ll carry on after you sell. Securing loyal customers will have a big impact on the company’s value.
Having reliable suppliers will ensure continuity for the business, so it is equally important to make sure their contracts are up to date and maybe consider diversifying your supply chains. Having more options can make the business better at coping with the unexpected, which will enhance its value in the eyes of potential buyers.
A company’s competitive advantage is the reason customers buy from them instead of their competitors. It is vital that businesses know their competitive advantage and then they protect and promote it. High quality, innovative products or services, coupled with exceptional customer service can help differentiate a business from its competition.
Every business should have a unique selling point, also known as USP, and this is extremely important to portray in all marketing efforts, whether that includes customer testimonials on the website, creating short videos for social media channels or doing PR and blogs to raise awareness. Speaking to your current client base would also provide interesting insight as to why they chose your business over another and then this information can be used to attract new customers. Remember, the more revenue a business makes, the more a business is worth.
Having a skilled and experienced team may be the factor that makes a business the most valuable and be more attractive to a wider range of buyers, especially those with less experience in the sector. By retaining these employees, it will make the transition much easier and the business will continue to generate profits from day one. It can also help your employees to accept and benefit from the sale.
A company that unfailingly generates higher profits and cash inflows will influence buyers as they will like a business that can be lucrative in any type of environment. For example, if a company grew both sales and profits during the Covid pandemic, while other firms in the same industry struggled, it will be more valuable than the competition and more appealing to buyers.
Businesses with established recurring revenue streams are more appealing to buyers, and in some cases, significantly increase the value and sale price of the business. Buyers can be confident with recurring revenues that there will be guaranteed cash flow for the business and more stability when it comes to forecasting revenues and creating budgets. There will also be reduced risk and more opportunities for growth, particularly if the buyer believes they can grow recurring revenue in the future.
Building the value of a business before a sale will be hugely beneficial and it can pay off in the form of a higher sale price. It may simply include making changes, or simply uncovering existing value that you can promote to buyers. By increasing the value of your business before you sell will ensure you have increasing revenue and profits, as well as a strong management team, quality products and services and strong processes and procedures.
For advice on buying or selling a business, please get in touch with your closest Regional Partner.
Do you know your Growth Potential? Preparing for a sale or exit from your business might seem like the end but it’s important to realise that for whoever is taking your place, it’s the beginning. Potential buyers aren’t solely concerned with past performance, they need to be assured that there’s a future in your business too.
Naturally, you tend to look at the value of a business based upon historic performance and metrics. Creating a successful business is a proud legacy; it’s an achievement. The way you extrapolate that is through how the business has performed so far.
However, buyers are not buying your past. Whilst the positive and profitable past of a business is undoubtedly a huge factor in the buying process, potential buyers also need to see a scalable future in your business.
They are looking to buy the future stream of profits. If you’re exiting, you’re at the end of your journey; they are only just starting. It’s fresh and new and needs to be scalable enough to demonstrate a viable future.
Knowing your Growth Potential adds value to your business. Importantly, this shows buyers that your involvement in the company hasn’t been focused solely on the immediate performance, but also on the long-term goals.
Allow buyers to see the potential and understand the current position and potential direction of the business. Think about how you’d answer the questions below if a buyer asked;
Be prepared to show your industry knowledge and understanding of the opportunities that exist within your sector and how they impact your business.
In a geographical sense and in terms of capacity. Could you cope with international interest or spikes in demand? Our research has shown that businesses with international reach usually experience higher offers.
In its current position, can your company cope with an increase in demand or would this cause problems? Paul at Uscita notes that; “If a substantial increase in sales represents short-term problems with staff, cash-flow, storage, premises etc, of course a buyer will reduce their offer, to reflect any further investment they have to make. A business with in-built scope for huge increases in demand is much more appealing, especially for a buyer with plans for growth.”
Buyers are looking for scalability when considering an acquisition. High risk businesses, with low growth potential are off putting for those looking to grow and expand once they’ve purchased. Don’t forget, when you are exiting or selling, think like a buyer. Remember how they will calculate the value of your business.
The focus therefore, is on how profitable the business will be moving forward aligned to the risk involved in this future growth, for the buyer. It’s important that you understand the inherent costs in your business and the impact rapid or sustained growth will have on profit margins.
If you are interested in finding out more about your growth potential and how you can create a more scalable business, whilst planning your exit, please contact us today in the strictest of confidence. Call us on 01606 535 024.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.