It’s important to know how to maximise value when selling your business and there are several ways business owners can ensure they get the best possible deal when exiting.
Buyers are rarely sentimental so being as pragmatic as possible and understanding what your business is really worth is an important first step.
Most businesses will be valued using earnings multiples which differ from sector to sector. The multiple can, however, be increased if there is an equity building strategy in place, for example:
- If the business is not dependent on the owner i.e. there is a strong management team in place capable of running the business in the owners’ absence;
- Being able to diversify and bring new products or services to market with the capability of creating new distribution channels, generating new clients;
- Having a strong brand, supported by effective marketing activities that generate more sales.
Any potential buyers will be looking at every aspect of your business so make sure everything is in order to reduce the buyers’ perception of risk.
During this seminar, head of Corporate Finance, Nigel Barratt, will advise on the steps business owners should be taking when embarking on a business sale. Selling your business will be one of the most important decisions of your life so getting the best possible result is paramount.