Getting the best price for your business

Selling a business usually occurs only once in a manager or owner’s lifetime and you have to get it right the first time.

By Shahin Akhtar, head of corporate, Curtis Law Solicitors

Exit strategy

Begin planning a few years ahead of the intended disposal date. This will give you opportunity to get best value and to pick the right time in terms of the economy and business performance.

Utilise advisors

The right advisors will speed up the process while reducing the stressful aspects. They handle the finer details of the sale while you focus on day-to-day operations.

Preparing your business

Present your best case to possible buyers. Be able to prove a strong financial record, compliance with legal obligations, and well-maintained assets. This demonstrates low risk to your potential successor.

Find buyers

Potential buyers could be investors, competitors, suppliers or customers, or your own management team. Sign a confidentiality agreement before discussions commence.

Accepting the right offer

There are many considerations when identifying the right offer. For example, does the buyer have the cash ready to pay on completion or will payments be staggered or dependent on future performance? There may be clauses such as retaining your services, or non-compete terms.

Finalising the deal

Once an offer is accepted, your business will be subject to due diligence by the buyer’s accountants and legal advisors. Employ your own advisors to ensure all information you provide is truthful and correct.