Preparing your company for sale

Planning ahead is essential when selling a business. If you are looking to sell your company straight away, you probably won’t get the full value you are looking for. However, if you prepare in advance, you can make sure you get the best deal possible. Below, we will reveal when to start planning, and how to do so.

When should you start planning the sale of your business?

The first step, is answering the question "Should I sell my Business" and once you have this you can prepare for the sale. There is no magic number regarding when to start planning the sale of your business. Quite frankly; the sooner, the better. Most experts would agree that it can take a good year to prepare before selling your firm, so you really do need as much time as you can afford, as there is a lot that needs to be prepared. Of course, there are certain circumstances when preparation is impossible due to unforeseen situations, for example, ill health.

What does preparing your company for sale entail?

There are so many things that need to be considered when selling your business, including tax planning, potential buyers in the market, debt profile, the economic cycle and conditions, the age of equipment and investment needs, access to funding, and acquiring good advice from a professional advisor. When you consider this, it is not hard to see why you need to start early. It’s good to put together a checklist of everything to get through beforehand. This is something a professional advisor can assist with, and thus it is advisable to engage them from the moment you decide you want to sell your business. This checklist will differ from firm to firm, as all business owners have unique requirements when it comes to the sale.

Tips to get you started

  • Think of it like selling your house – What we mean by this is that, you would not sell your property without making a few cosmetic adjustments, would you? Well, the same applies to your business as well. You need to do some cleaning up before you sell your firm, and we don’t just mean your office floors! Make sure all of your paperwork is up to date and that your finances and records are in good order.
  • Get in touch with a professional business selling agent – As mentioned, it is important to get in touch with a professional business selling agent as soon as possible. A lot of business owners leave this until the last minute; when they desperately want to sell their business as soon as possible. However, if you engage an expert team from the start, they can assist with all aspects, from business valuation to negotiation, and it will prove to be much more beneficial and profitable in the long run.
  • Prep your team – Last but not least, make sure that the team that you put into place is fully briefed on your objectives, goals and your desired outcome. This team may include internal members as well as external advisors. This will prove extremely beneficial and will ensure that you get the right balance.

If you need any assistance with any aspect of selling your business, then here at Kingswood, we’re only too happy to help. Call us today to take the stress of selling your business off your shoulders.

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