When and how to sell your business
The timing of a business sale is often complex.
External considerations
The received wisdom is that 2010 will not be a good time to sell a business for its full value. The news is not all negative though. There are signs that far sighted overseas acquirers are treating the low value of the Pound as an opportunity to acquire UK businesses. In addition, if your business has a high level of strategic value for another company, the timing of the acquisition may not be affected by the economic downturn.
What is more certain is that the years at the end of a recession are often a good time to sell. If you have developed and implemented a strategy to survive the bad times and be ready for the expected economic upturn you are likely to be attractive to prospective purchasers. Market understanding, products and services that really address customer needs, an effective sales process and good operational control will all be valuable attributes. Couple a focused, strong, lean businesss with an upturn and reduced or weaker competition and this may be the last recession you have to work through.
Internal considerations
In many cases the personal requirements of the shareholders are a major factor: Age, post exit ambitions and the wealth required to fund retirement may all affect the decision. Our clients often ask us to help them create a "best fit" strategy in situations where the requirements of the shareholders are not aligned.
How to go about selling
Where possible develop your business so that it will be attractive to a range of potential purchasers. At the time of sale aim to have three or more prospective purchasers genuinely willing and able to bid for your business at the same time.
The sale is likley to be the most important and complex transaction you undertake. Use advisors with a good track record in dealing with companies of your size and a history of successful business sales. You will rely on your advisors heavily during the course of the transaction so personal chemistry and trust are important. Before undertaking the transaction interview a range of Corporate Financiers, Business Brokers and Lawyers. We can supply a short list of advisors if required.
Azure Partners have developed businesses for sale or flotation personally and are experienced in helping others to do so. Call 0207 100 1233 or contact mike.robson@azurepartners.co.uk