It’s been 18 months since you opened your business. Or maybe 2 years, 5 years, or even 10 years. However long you have been huffing and puffing at starting, operating, and growing your business, you might be starting to think it’s time to sell your business.
This is a big decision, and there are many factors to consider. Maybe you even have multiple “to do” lists piling up in your head because you are not sure how to sell a business. Deciding when and if you even want to sell can take some serious thought. However, you don’t want to wait too long because it can undermine your chances of being able to sell. Keep on reading for five tips about how to sell your business.
Tip 1: Do Your Homework
The process of selling your business in the UK can take anywhere from 6 to 12 months or more so, the sooner you start, the better. You have invested a lot of blood, sweat, and tears in getting your company to where it is today. Once you are ready to begin the process, it is a good idea to get your business in order. Gather all your financial paperwork in one place. This includes balance sheets, cash flow statements, profit and loss statements, and tax returns.
Keep your eyes wide open because you don’t want to get blindsided with any number of things that could go wrong. Something like a “simple” breach of confidentiality could compromise a potential sale. Familiarise yourself with your reasoning of why you want to sell your business, as potential buyers will be curious.
Tip 2: Figure out the Worth of your Business
Reach out to a business appraiser to avoid any issues with determining the value of your business. Understanding how much your business is worth will give you an advantage when it comes time to negotiate.
The goal is to get the most money you can when you sell a business, but pricing it too high or low, can cause issues when it comes time to negotiate. A low price can compromise your negotiation ability because you can’t ask for more, and you might lose money. On the other hand, a high price may discourage buyers, and you could run the risk of receiving offers that are too low.
Tip 3: Present your Best Face
Knowing how to sell a business takes time so if there are any projects or parts of the business that still need work, now is an excellent time to get those sorted. Update your website, finish any repair work, and replace anything that might help showcase your business in its best light.
Tip 4: Consult Professionals
You may be great at creating and running a business but selling your business in the UK is another story. Reach out to a variety of professionals to help you navigate the intricate process of how to sell your business. This could include lawyers, accountants, financial planners, or insurance brokers. Keep in mind that all professionals are not the same. Hiring the right people to help you market and sell a business will ensure you are protected, the transaction goes smoothly, and you get the maximum value for your business.
Tip 5: Manage Expectations
Your business is only worth what the market is willing to pay, so it is crucial to manage your expectations. It might take longer to sell your business, and you may not get the best offers, but it is a good idea to remember that it’s not personal.
Take your time and be thoughtful about your plan. Gaining a profit depends on the reason and timing for the sale, the strength of the business’s operations, and its structure. After everything is done and you sell a business, take some time to determine the best way of handling the profit.
Selling your business in the UK can take time, but it’s important to stay patient, be realistic, and ask for help when needed. How to sell a business is a long, arduous process with many considerations, so give yourself some time to plan.
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