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The decision to sell a business is important for any owner to take, and it’s potentially something that you’ll only have to do once in a lifetime. The process of selling can be fraught with complications but with the right amount of exit preparation your journey from ‘for sale’ to ‘sold’ can be made a great deal smoother.
Here’s some advice for selling your business and moving on to the next adventure.
Preparation
An exit is a process, not an event. What this means is that when it comes to selling, you need to think about your exit management well in advance of implementing it. You want to show your business in the best possible light, so prepare at least 12 if not 24 months in advance to show good year-on-year data and to also keep up your businesses’ momentum as you raise awareness among potential buyers.
Preparing and optimising your business leads to better valuations and quicker processes. Buyers have much less uncertainty, and as a seller, you’ll be able to dictate the progress of the sales process from a much more comfortable position.
Experience
Previous exit management experience among your management team can be a tremendous boon. The best businesses have this experience and are less likely to underestimate the time required. Crucial to the success of the sale is having a well-thought-out strategy, so having experienced hands at your disposal will be key in ensuring this. They’ll also be required in making the best decisions as your business continues to run and perform.
This is where big businesses are at an advantage over smaller ones. They’ll have much more experience to deal with every aspect of the deal, so small businesses generally need to learn on their feet.
Finances
Work with a good Finance Director to ensure a smooth exit. The main value of a Finance Director is articulating the strength of an investment proposition from a financial point of view, demonstrating to buyers the real value of the opportunity in front of them.
Additionally, a good Finance Director can help prevent delays in the exit process, as they can hold the pen while the business continues full steam ahead with its growth.
Small businesses can now access the expertise of part time Finance Directors who have previous experience of exit management and can guide them smoothly through the process.
Planned exit preparation
There is plenty that can go wrong in the sale of a business. Delays are one of the most common problems sellers encounter, and they’re often what give buyers itchy feet. This process can often be an emotional rollercoaster.
With properly planned exit preparation, you’ll find that you can minimise risk and make this important time in your life as stress-free as possible.
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