Selling a business is a major event, both financially and equally emotionally. For this reason, one of the most important considerations early on is to take onboard professional help and advice. A seller needs that independent and expert advice to guide them through the whole process and help the seller take rational decisions rather than emotional ones.
In our work advising sellers and sourcing buyers for businesses, we suggest the following are some of the key considerations when selling a business:
What is the reason and rationale for selling? This has implications right through the process and also for the whole sale strategy.
Timing is key. It is always best to start the planning as early as possible and when you can fully control the process. If you are having to sell the business or there is a short deadline, this limits the options available.
Naturally a seller wants to maximise the value and it is key for the advisors to help this be achieved. A valuation needs to be agreed with the seller and to do this you should look at what is extraordinary and not core that can be added back and also look to find extra potential for purchasers and where possible multiple bidders