Are you considering selling your business? The process may seem daunting, so it is important to understand what will be involved in the transaction and business exit planning. With so many exit options available, choosing the right path for you and your business can be complex. At fds, we specialise in guiding owner-managed, private, and employee-owned businesses through tailored exit strategies, ensuring your goals are met and the most successful outcome is achieved.
Selling Your Business: Getting Started
Before undertaking this process, one of the initial points of consideration should be the timescale within which a transaction of this nature operates. However long you believe it will take, it will likely take you significantly longer. The first course of action that you should take is to prepare yourself physically and mentally, so you are in the right place to undertake this process. This includes ensuring you have lined up your internal and external teams; both aspects of the team are equally important. Deal transactions can be a roller coaster experience, so it is important to have a firm support system alongside solid coping mechanisms and resilience techniques.
Selling Your Business: Setting Realistic Expectations
When considering deal value, it is important to remain grounded. Do not set unrealistic expectations that will disappoint you when you reach the end of the process. Ask yourself honestly: What figure would you be happy to walk away from your business with? It is also important to remember that it is unlikely that you will walk away with the entire value on day one—generally, there will be some form of earn-out or loan notes. This is not as negative as people think; it simply requires structure.
Selling Your Business: Considering Life Post-Completion
All business owners who are in the process of selling must face the question of ‘what comes next?’ It is the next challenge of redefining yourself and managing your time differently from previous years.
Preparing for life after the transaction is just as important as preparing the business itself. Ensure your financials are clean, your documents are in order, and all key records are ready for examination. When due diligence begins, buyers will be more inclined to look for reasons to negotiate the price down. The more robust and well-organised your data, the stronger your valuation will be. Preparation isn’t just about presentation- it’s about protecting the value you’ve worked so hard to build.
Selling Your Business: Enlisting Advisors
In order to maintain a sense of structure in the process, you should engage with experienced and knowledgeable advisors to help you get your transaction across the finish line. This should be collaborative and work to the expectations and requirements of you and your company.
If you are interested in having a confidential conversation with fds to discuss your selling options, please get in touch.