If you are thinking about moving out of business then start by talking to us because we can help you to maximize your businesses potential – and this means maximizing your sale price!

Firstly, we want to talk to you about why and how – find out what your goals and objectives are.

Secondly, we need to make you aware of the cashflow (and tax!) implications

But … and it could be a big butt!    Unless your business is already in great shape, optimising your business ready for sale is something that can take several years!   So you need to think about this well in advance.

For example there are lots of examples of businesses who have a couple of bad years, then have a good year and think that now is the time to sell up.   But the Banks don’t like lending money to buy that sort of business because the track record is actually filled with bad years and that means a lower sale price.   So, it might be advisable to wait for another year (and work to make sure that it is a good one) to make the business more marketable.

Another example is the successful business that actually depends upon the business owner to work in the business more than you think!   If you have this sort of business then actually your business is worth less than you think … because only someone with your skills and talents can come in and keep the business going.    The issue here is that you need to plan for a longer period beforehand, because there are things that you can do to change how much the business is dependant upon you.

And if you are thinking of buying a business then talk to us about that as well!
For most people, buying a business is something you only do once.   So take advice – in particular get a reality check and make sure you are not wearing rose-tinted spectacles.

Points to consider are:

• What is your internal structure? ie, Lots of staff and management?  Lots of staff but no management?  One man band?  Make sure you have drawn up a personnel/organisational chart.
• What is your sales profile?  What proportion of your business comes from what proportion of your customers?  Do you have lots of repeat customers or do you need to market all the time
• Contracts, contracts, contracts.  All your contracts need to be reviewed and organised and possibly up-dated.  ie employment contracts, sales contracts, purchase contracts, but also property leases, overdraft or loan guarantees, pension schemes
• Accounts.  What is the picture your accounts present, do you need to lose superfluous expenses or products?
• Do you have a strong management team?  Or do you need to recruit or promote?

And finally,

• Why?   Why are you selling and might you need to think again about your reasons?  It is common to find that businesses are withdrawn from sale because the business owner has had second thoughts, so let us help you to consider your reasons to make sure you are doing the right thing.