• Decide on your ‘walk away price’. As your adviser, this is something we can advise and support you with.
• Due diligence – An important part of the negotiation process involves conducting due diligence on the buyer to ensure that they are trustworthy and financially sound.
• Understand the market – Not only do you need to understand your buyer, but also you need to know the marketplace in which you plan to sell your company. Understand the associated value of your company assets and pay particular attention to any relevant activity in the market.

• The buyer’s perspective – It is important to be as flexible as you can and understand the buyer’s point of view. Think about what they stand to gain from buying your business and future opportunities for them. It has to be an attractive deal for them too!
• Remember, price is not everything and is not the only thing that needs to be determined during the negotiations. What is in store for senior management and employees? How is the payment consideration going to be structured?

The best way to find the right buyer is by having a strong and coherent marketing strategy in place in order to find the right buyers for your business – whether they are private investors; those seeking acquisitions to bolt-on customers and turnover; or strategic purchasers seeking to grow their group including geographical representation, or to acquire new core competencies, products and services.

Kingswood can help you with an effective marketing plan put together by qualified marketing professionals that focuses on a small number of targeted purchasers using the appropriate media and platforms. This contracts to mass untargeted 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 compromises confidentiality.

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.

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.
• Commence the marketing process and manage the transaction through to completion