It’s wise to plan for the sale of your business the day that you go into business. In reality this rarely happens as most business owners get caught up in the daily running of their business with barely enough time to plan for the month ahead, let alone the sale of their business. We sometimes find that business owners can improve their prospect of achieving a favourable sale price by planning for the sale of their business months ahead of going to market. We can help put in place a plan to help increase the value of your business and the prospects of finding the right buyers.
- We begin with a SWOT analysis of your business to understand your Strengths, Weaknesses, Opportunities and Threats. Promoting Strengths & Opportunities is obvious, especially when trying to promote a business to a buyer. However, it’s equally important to address Weaknesses & Threats before going to market. Often business’ weaknesses can be addressed before going to market. If they can’t, then they should form part of the discussion with buyers. Nothing can ruin a business sale more quickly than a buyer learning something about your business during due diligence which should have been addressed early in the sale process.
- Identify areas for improvement to increase business value, profit and cash flow.
- Expose the relationship between business activities and results. This is particularly important in service businesses which may be acquired by firms seeking strategic growth. Determining the GP of each of your employees or contractors is important for you and any potential buyers.
- Highlight the results the existing ‘Business Drivers’ are currently creating.
- Help to determine how dependant the business is on it’s owner. Many SME businesses are owned and operated by one person, or possibly a couple. The business owners understand every aspect of their business, know their clients intimately, but if they’re not working ‘in’ the business daily, the business suffers. A business that is not reliant on it’s owners if far more valuable than one that is. We work with you to implement a plan to make your business less reliant on you as the owner and at the same time more valuable to buyers.
We can help you put a plan in place to get your business sale ready. Call us today for more information.