How To Sell Your Business


Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

How To Sell Your Business

  1. 1. ACCESS TO KNOWLEDGE HOW TO SELL YOUR BUSINESS “This was an excellent presentation by Ivor dealing with would be if I did decide to sell it, and what would be most attend the A2K seminars and find these are useful for attractive to a potential buyer” Susan Heaton Wright, making new contacts” Craig Males, Rayner Essex wealth management with a particular emphasis on selling Executive Voice your business. Whilst I am not currently considering “Both the breakfast and lunch events were interesting. I selling the business, the talk prompted me to look at my “The whole event was very good and the combination of a enjoyed the seminar content and the networking sessions.” business and its structure; to consider what the value seminar and networking works really well. I regularly Chris Carr, Celarben Ventures Ltd considered some of this al- 1. Set yourself objectives ready such as tax mitiga- tion structures and splitting 2. Educate yourself about the process the business into different segments. What continuity 3. Analyse your business planning have you imple- mented? 4. Consider appropriate tax and legal structures still hasn’t been completed happen to it? If you answer it 5. Discretely contact po- 5. Discretely contact potential buyers and you are likely to be would struggle or fail you don’t tential purchasers; very providing warranties after often managed by a third have a real business – just a 6. Negotiate to heads of terms the sale so although you party to ensure anonymity. contact book and supply chain are close to transferring They will screen purchasers with some customers. If you 7. Complete due diligence process ownership still keep a tight for affordability, synergy want to sell a business it has to hand on the reigns. and motivation. Ideally stand up on its own. 8. Maintain focus on operation of your business you want more than one There are of course excep- 9. Contracts are signed; all party interested to create a tions, you may be an inventor, negotiations are completed 9. Sign contract and bank money sense of competition be- create ideas, patent them and and agreed, contracts tween buyers. sell them because you aren’t signed, money changes 10. Decide what to do next with your life interested in the practicalities hands and shares trans- 6. Heads of agreement; is a of what goes on in and around ferred. Sale completed. legal term that gives one ONE OF THE BEST attended as a shareholder. Are your a business. A business, profit Congratulations. prospective purchaser ex- seminars for a while “realising shareholder agreements ro- centre, income stream, com- clusivity to look over your the maximum value from your bust and suitable for your 10. Your creation, your business. It is not a binding petitor will be more attractive business” proved very popular. business as it is today? life’s work is no longer sale agreement, but pro- Ivor shares here his top tips to What value does your to a purchaser and sell for sig- yours. The brand that gave vides comfort for the get your business into shape to brand have? What value do nificantly more than a legally you status in the commu- prospective purchaser. conclude a successful deal. your people add? What protected idea. nity, the world that you value do your processes If you recognise some of controlled, your role on a 7. Completion of due dili- 1. Ensure you have clear add? Can improvements be the points raised in “are you daily basis – gone. If you gence; all sale terms are objectives of what you made to any of these to in- trapped” the value you will are a serial entrepreneur or now agreed, price, war- want from the sale; think crease value? Trade mark- realise will be less than you you are glad to have left to ranties, HR issues, brand, beyond monetary value; do ing, copyrighting, patent- could achieve; you need a re- tour the golf courses or his- stock, service agreements. you want your brand to ing, intangibles; have you view and analysis of your busi- toric sites of the world this What valuation clauses do continue; do you want to protected your intellectual ness. A review will also is unlikely to cause you a you want? What can you ensure existing staff are property? Have you identify and potentially problem. For the majority expect to see in the con- cared for; how much do analysed the structure of though it leaves a big hole remove possible impedi- tract? you want to sell for; is your your business such as mar- in their life – a significant expected price realistic; do ments to sale. 8. Maintain Focus; whilst ket share, customer pro- change to your world – you want cash up front files, supplier profiles, con- all of this is happening it is Q What hidden value what are you going to do? only or will you accept an tractual income streams important to remember is there in your earn out (staged payments and supplier agreements? If you were to be taken ill for a that the business is still business or would over a period of time). Are there majority and mi- while and could not manage yours and that it still needs you like to create? nority holdings in your 2. Educating yourself to be managed. The sale your business what would A . Such as excellent brand business and how will this about the process has awareness, staff training affect the valuaton if only a begun! Research shows that programmes, staff retention, part is available for sale. sellers who have already creating a new market, patents, How will a purchaser gone through the process trade marks, unique suppliers, look at your business? wished they had known tried and tested marketing What are they looking for? more before they started. You are likely to have been initiatives, knowledge base. A Email for told that your business will more information on the Intangibles that are not shown sell for a specific multiple – research. in the company accounts that how has this been arrived someone is prepared to pay for 3. Analysis of your busi- at – is it accurate or because it will add value to ness starts with your 3 wishful thinking? their business. roles; shareholder, direc- If you would like to have 4. Realising maximum tor and employee. All have an informal discussion about value means that you different responsibilities this with Ivor then please con- want to minimise your tax and create the shape and tact him on 01717 870613 to liability and ensure that as form of your business. ensure you realise the maxi- Selling means that you are a legal entity you look at- mum value from your busi- transferring your shares for tractive. For long term value. Focus on your role thinkers you may well have ness. Kellock Wealth Management is a trading style of Trinity House Financial Planning Limited – Highland Suite, Great Hollanden Business Centre, Mill Lane, Underriver, Sevenoaks, Kent TN15 0SQ – which is authorised and regulated by the Financial Services Authority. Registered in England No: 4740530 Registered Address as above 12