Preparing A Business For Sale
Business owners should plan and prepare for a sale as much in advance as possible. However, sometimes market conditions dictate that it may be more profitable to sell now rather than wait. Whatever your time scale, Axis can help you properly prepare your business for a successful sale.
- Have a clear and understandable objective to the sale. Purchasers normally seek justifiable and sensible reasons.
- Obtain a realistic view of the sale price and the deal structure that is likely to be secured.
- Consider the possible purchaser and their likely reason for purchase. This makes it possible to prepare the business in the best and most advantageous way.
- Review management of the business. It is desirable that the business can function without the seller.
- Address issues relating to key customer relationships. Ensure there is a good spread of customers and / or secure contracts.
- Consider how to maximise profits. Low margin work or new ventures should be halted and non-business expenses minimised. Purchasers will often look for a steady growth in a business. Sudden profit boosts will not necessarily be seen as a benefit.
- Focus the business. Purchasers are more likely to consider favourably a niche business that has a logical structure. Look closely at associated businesses or the range of services. They may not be logical for a purchaser and a piece-meal sale of separate parts of the business may be better.
- Employees, customers and suppliers are unsettled by a prospective sale, so confidentiality is essential. Retention of key employees is also important and incentives should be considered.
- Your professional advisors must be fully briefed and prepared.
- You must pay special attention to your existing and future tax position.
Once the initial planning has been carried out you will know for sure whether it really is the right time