Setting up a business can be an important step in a person’s life, but so can its eventual sale in the future. Deciding to sell a company or pass it on to family via succession, or on to staff through a management buyout can be life changing.
However, having invested time, money and resources into building a successful company it can often be difficult to know how or when to sell and whether you are getting the right price.
We work with businesses from a wide range of sectors to help deliver the greatest value back to owners – including the creation of a Life Wealth Plan to ensure any capital gained from a sale is properly invested for the owner’s retirement.
To help owners make the most of their business sale we have produced several top tips:
- Setting realistic goals – come up with a rough value you would hope to achieve and the timeframe in which you hope to reach a sale. This will inform the future structure of your deal.
- Conduct an audit of your financial systems and operating procedures – A detailed audit can highlight the strengths and weaknesses of the business and enable issues to be rectified, as well as give buyers a better appreciation of its overall financial health.
- Investing in the future – Finance can often make or break a deal. Sellers should consider providing finance to facilitate payment in instalments and a period of ongoing support to the buyer of their business to increase confidence and ensure the likelihood of future success.
- Consider the tax implications – Seek specialist and bespoke advice to ensure your sale is structured correctly to maximise the opportunities for Capital Gains Tax (CGT) reliefs and allowances which can result in significant tax savings if complex qualifying conditions need to be met.
By planning well in advance there is much that can be done to improve your chances of getting the successful sale that you desire or even increase the value of the business above your expectations.
Our Corporate Finance specialists are experts in finding the right buyer for businesses and so you should not resign yourself to receiving less for the business you have worked so hard to build.
For a more comprehensive guide to selling your business, why not get a free copy of Lamont Pridmore’s 10 Top Tips for Preparing a Business for Sale by calling 0800 234 6978 or emailing firstname.lastname@example.org