There is a lot to think about when running a business let alone when you are considering your options for an exit and/or retirement. 

Here are some key considerations:

• The sale on your life

How is the sale going to effect your life and future goals (of you and your family). Many entrepreneurs are unprepared for the emotional impact of having sold the thing that had been so important to them for so long.

• Business continuity

Founders/shareholders have a high impact on the business even when part-time/non-exec. Management succession can be emotional and take time. Prepare rigorously and ensure your management team are as fully self-sufficient in running the business as possible.

Business continuity is critical through a sale process. Ensure that the management of the business is not distracted during the sale process – they need to deliver during the process. You must hit your monthly forecasts during the sale process. A dip in sales in the month before completion has a disproportionate impact!

• Financials

Forecasts and business plans should be ambitious but achievable – make sure they are put together properly. Make sure that the management information available is high quality – the focus from buyers on the metrics and data of the business is higher than ever. 

It’s often worth doing a dry run of the financial due diligence process to make sure the business can produce the data it will need during a sale process.

• Company image

PR about the business in the year or two pre-sale is part of the sales documentation. Buyers will look at the electronic footprint of the business during the sale process. Published financial statements are also part of the selling message. Make sure they are helpful when published.

• Potential buyers

Think of every business that might be a sensible buyer for the business and then whittle the list to the more obvious ones. Understand how the Private Equity market works. There is an option to sell to private equity for most companies now, but it’s a world many sellers are unfamiliar with.

Make the effort to meet obvious buyers in advance to start the relationship and understand why they may want to acquire the business.

• Alignment

Incentivise the management team to benefit from a sale so they are aligned with the sellers and feel positive about the outcome.

• The Sale Process

You should be as in control of the process as possible at every stage of the sale. Don’t let management or any individual buyer reduce the control you have as a seller. 

• Advisors

An experienced advisor will not only support you fully through the process but also will optimally position the business and make sure you are considering these key points ensure you run a controlled and optimal process

Use an advisor so you can keep your eyes on the business and hitting your forecasts.

We would be delighted to chat if you are wrestling with issues around how to go about selling your business or want some general guidance / advice. Please do drop us a note for a no obligation conversation.