How to Sell your Business
Planning
The process of selling your business should ideally start at least two years before you intend to dispose of it. This will give you time to decide if you want to pass it on to a member of your family, to sell it on the open market or allow a management team to take it on. You should also structure the business so it is as attractive as possible to potential purchasers by considering:
- Maximising profitability through reduction of costs and renegotiation of contracts
- Improve cash flow by close attention to payment terms
- Minimise any cash tied up in more stock than is necessary
- Ensure any legal conflicts are resolved
- Manage your customer base so it is not vulnerable
- There is a strong management team in place so your departure will not affect the business
This period will also allow time for ensuring any proceeds from the sale will attract as little tax as possible. This can sometimes entail a restructuring of the business so should be planned well in advance.
Monahans Routemaster service could help you in this process – Click here for more information
Alternatively you can identify the attractiveness of your business using Monahans Succession Diagnostic model.
Valuation
Correct valuation of your business is critical in ensuring it sells quickly and provides you with the best return possible. Our Business Valuation Calculator will provide you with an approximate value. However, before putting your business on the market, we will undertake a far more accurate valuation. We have great experience in assessing the value of your business by looking at profitability, premises, machinery and employees along with the value of intangible assets such as your brand, client base, marketplace dynamics, goodwill and the uniqueness of your products or services.
Marketing Your Business
Having gained an in-depth knowledge of your business and the market it operates in, we will produce a Sale Memorandum. This will give interested parties information on the business, once they have signed a Non Disclosure Agreement, to allow them to decide if they want to proceed to a more detailed discussion.
As well as advertising your business, we will use our extensive database of contacts and will proactively research others to make confidential approaches to likely buyers. Simply advertising your business on a ‘for sale’ web site is unlikely to give you the best return – a proactive approach always makes a huge difference.
Negotiation
In the heat of the moment, it is very easy to give away more than you need to during the negotiation process. Having an experienced Corporate Finance professional on your side could make all the difference to the final deal and the amount you realise.
Legal Input
Selling your business will require the input of a lawyer who specialises in this field. We can help you to identify one that will best suit your needs and can help by providing commercial input into any contracts.
Completion
Selling a business can be a very difficult and complex process involving several different parties. A good Corporate Finance professional will keep the process on track and drive it through to completion as quickly as possible.
Why Monahans
Our team of specialists can help you throughout the entire process of selling your business. From the initial planning process using our Routemaster process, through to finding a buyer, negotiating a deal and ensuring completion that meets your expectations. Our Business Transfer Service provides a professional and tailored service at a price that may pleasantly surprise you
In this section
Business for Sale
Register to Buy
Click here to register to buy a business
Register to Sell
Click here to register to sell your business
Calculate Your Business Value
Click to calculate your business value
