There will inevitably be a time when you either wish, or have, to leave your business.
You don’t get a second chance to sell your business so you must have a clear idea of the stages before charging into a sale.
Your initial step should be to outline what you want to achieve from the sale. To determine this, consider the following:
What are your personal goals?
Your current stage in your career will contribute towards your goals.
For example, if you are in the middle of your entrepreneurial journey and aim to build and sell businesses relatively quickly, you will be less focused on who your buyer is and more on making a profit.
Alternatively, you may have emotional ties to your business that come into play.
Think about your retirement, would you like your business values to be upheld by new owners?
If this is the case, further considerations about whether you should retain an element of control over your business, such as through shares, are raised.
How do you want to be paid?
Knowing how you want to be paid for your business can steer you in the right direction when preparing the business for sale.
With there being so many avenues available, considering the following can narrow your options down:
Of course, the answers to these questions will be directly linked to your personal goals for the business.
If you want to quickly sell your business and move on to another venture, cash will be a viable option for you. Raising the most amount of money possible will be one of your priorities.
If you want your business to continue on the same path that you have been working towards, Employee Ownership Trusts (EOTs) or a Management Buyout (MBO) is more suitable.
As you would be selling to people that know your business well, you can be confident that your business will uphold the values that you instilled in it and continue your legacy.
For advice on selling your business, contact our team today.
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