To sell your business was never your primary objective when you created it enthusiastically.Yet there are some “inevitables” in life:• Death• Taxes• And Exiting Your BusinessAll business owners will have to exit their business at some stage of their life. Not all of us are like Rupert Murdoch and are getting close to 90 with no sign of giving it away! At some point, most of us have a thought in the back of our head that we do want to exit our businesses. And we hope to monetise the value we have built up over the years of all that hard work.
However, I hear many times business owners say that they will sell when someone comes to them with a big bag of money. Usually that means that these owners do not seriously want to sell. Or more likely, they have no idea about the process to actually sell their business; and they are too afraid to really think about it.Buyers do not walk in off the street and randomly buy your business.Sellers have to want to sell their business.And yes, selling your business is a difficult task – it is nothing like selling a house. Indeed it is far more complex and requires serious planning which usually requires some difficult decisions.
To get the best value for your business, you need to understand what a potential buyer would find valuable about your business. Of course this will vary from business to business and buyer to buyer. However buyers initially look at 5 factors before they even head down the path of seriously engaging with a seller:
I am sure some of you are surprised at this list. It is missing some facts and figures. Where is: the industry analysis? a set of economic metrics around the industry and business? the competitor analysis? Etc EtcSmart buyers are concerned with the “softer” issues as well as the hard data about the industry.
Here is a serious tip if you are contemplating the best way to sell your business and to get maximum value: Ensure that you at least consider and address these factors before you enter in any engagement with a potential buyer.Do you have that thought in the back of your head about selling your business? Then get that thought to the front of your mind now; and spend some time on getting the basics right.The members Of The Network Of Consulting Professionals can assist you address these issues and maximise the value of your business. Contact us to know more.