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A forced sale valuation is always significantly lower than the true value.

It is never too early to plan how you are going to sell your business.  It should be part of your initial business plan.

• What will reduce the risks for your buyer?
• How will you build a broad base of repeat customers?
• How will you motivate your staff to learn procedures that do not require your continued involvement?
• How will you invest in product / service development to keep your market edge?
• What evidence will you have to convince a buyer that your business will generate profits for him?

It takes time to prepare a business for sale.  It can be useful to keep in mind an outline of what you will need to do.

• Run the business as efficiently as possible.  Any efficiency will add to the value of the business.  It will have most effect if implemented early enough to affect the reported profits.  Consider any potential cost reductions, staff incentives and other employee issues.
• Look at all your liabilities, lease and legal agreements.  Identify and act on any issues which may detract from the value of your business at the point of sale.
• Consider how any new owners would manage your business.  Will the new owners have confidence in the continuing managers or your business?  Is there anything you can do to improve the position?
• Are you promoting your business in a manner which is appropriate for the new owners to take on?

You probably have contingency plans for a fire or burglary at your premises, details of customers phone numbers off site so you could warn them of delays etc., a schedule of modern equipment you would need to replace immediately.  If not some investment of time is worthwhile for peace of mind.  If the worst has happened, then at least do not replace out dated equipment with more outdated equipment.  How good are you at making the very best decision in an emergency?

You may have no wish to sell today, but what does the future hold for you and your family.  If illness strikes will it affect your intentions?

If you wanted to sell your house for the best price would you -

• choose mid winter?
• leave the outside painting another year?
• let the grass grow long?

We can -

• ensure that your accounts are up to date and accurate
• prepare useful management figures for you and a prospective buyer
• help you decide if you want a continuing role
• help you decide how important is it that current staff are retained
• identify any assets best realised before the final disposal
• draft documentation for a prospective purchaser
• list contractual arrangements and staff structure
• review your business plan and projection of your market place

Even a simple matter of keeping the premises tidy increases the selling price, and it probably helps your day to day efficiency as well.

We have access to specialists with an in-depth knowledge of potential purchasers across the country and worldwide through an international network.

We can also help you plan your business succession.

Technically it is possible to sell a Company by the completion of a share transfer form and the receipt of a cheque.  In reality a share purchase agreement will probably be required, or a sale agreement if the business is not a Company.  Lawyers will correctly want an agreement comprising indemnities and warranties covering a range of subjects.  The purchaser will often criticise aspects of the business in order to negotiate for a lower price.  While the business owner probably still has a full time job running the business, these can prove very annoying.  Any matters which are potentially of concern should be included in a letter of disclosure to the purchaser.  We can help you take a dispassionate view.

See also Links - Business Transfer Agents

Reminder - disclaimer applies. Please feedback your comments.  This page was last modified 5 December 2003.