Effective and efficient planning and preparation will allow the sale of your business to progress in a controlled manner, avoiding unexpected issues arising along the way. We will spend time getting to understand your business and the key aspects that drive its success.
We will undertake a review of your business to identify areas that require improvement. These may be financial, operational or involve changes to management to reduce the degree to which the business is reliant on you. The focus is to have a business in the best possible position prior to going to market.
Tax and pension planning is also essential. We have the expertise to ensure that an integrated tax and wealth management plan, from pre-sale planning to post-sale investment, is ingrained in the sale process.
Every business sale is individual, but the likely steps can be generalised as follows:
The only accurate valuation of a business is the price someone will actually pay for it, but when selling a business it is useful to have an expectation of what that price might be. Your first involvement with a corporate finance adviser is often getting a valuation to work out whether the time is right to sell now or whether changes need to be made increase the potential value. Key things to consider in a valuation are:
We will consider these factors and combine them into a model which gives a value. Not only does this allow you to understand how much you might get from a sale now, but it also helps you to understand what changes could be made to your business to increase its valuation. Whether you require a valuation to start the selling process now, or in the future, we are here to help.
Deciding when to sell your business is very important. You need to be sure that the consideration of the sale proceeds plus income from other investments and pensions is sufficient to enable you to live the life you wish, bearing in mind that the income from your business will cease.
We always recommend that an estimate of "lifetime cash flow" is done before any decisions are taken. This examines outcomes such as projected investment returns and expected living costs and highlights how much the business would be need to be sold for to secure your future lifestyle. If there is a shortfall, you can take steps to do something about it!