Business Disposal

Business disposal relates to the sale of a business, typically by a group of companies when the business in question is no longer considered one of their ‘core’ companies. However, there are numerous other reasons for selling a business, including an investor who wants to realise their investment, or retirement. No matter your reason for business disposal, there is a lot that needs to be considered, and hiring a professional advisor is a must.

Finding the right buyer

Finding the right buyers if, of course, of paramount importance when selling a business. The best way to achieve this is by having a strong and coherent marketing strategy in place. The buyers you are looking for are strategic purchasers, i.e. those who are going to gain the most by investing in your company. An advisor can help you to put together an effective marketing plan that focuses on a small number of strategic purchasers. This is the opposite approach to mass marketing, which is what many business owners opt for when attempting to sell their company without outside assistance. However, a careless and poorly targeted marketing campaign can be severely detrimental to your firm as it increased the risk of ‘leaks’.

Working with an advisor

Working with an advisor is recommended for numerous reasons. As touched upon, they are better placed to find the right kind of buyers for your business, and to put together an effective marketing plan. Not only this, but business disposal can be very time-consuming. This highlights why you need an advisor and not merely a broker. An advisor will handle the disposal from beginning to end, leaving you to focus on your business interests. They can assist with everything from business valuation to business negotiation. You should expect an evaluation for free – this encompasses a thorough review of the business, looking at issues that could affect the sale of the business, and predicting areas that could prevent a sale of the business or reduce the valuation. Spotting these issues early and dealing with them is key and saves money and heartache in the long-term.

The process

Finally, let’s take a look at what the process involves, of course, working alongside your advisor:

  • Discussing your objectives – It is important to establish what you want to achieve from the sale. Every business owner has different objectives. While most people want to realise as much as possible, others may be after a quick sale. You also need to think about whether you will be in a position to stay on in order to help the transition.
  • Devising an exit strategy – Devising an exit strategy is the natural progression after you have discussed your objectives. Create realistic timelines with your advisor so that you can schedule the handover of the business to the new owners.
  • Detailed research – There will be detailed research into the market. You will also need a detailed business valuation at this stage.
  • Shortlisting buyers – Finally, you will put together a shortlist of buyers with your advisor, ensuring you have a targeted approach to finding the best potential buyers. There is nothing wrong with making the first move once this list is established.

If you’re in need of assistance with business disposal, at Kingswood Business Sales we have the knowledge and experience required to make sure you get the best deal you can. Why not call us today to find out how we can help?

When we chose Kingswood to sell our business we believed that their simple, easy to understand proposition to sell our business “a better way” was just what we wanted.This is exactly how it worked out with professional support from beginning to end. And the fees were exactly as quoted!

I would use Paul Holohan and his team at Kingswood again without question.

Bob Hanks