In this article, PM+M partner, Jim Akrill, highlights some key considerations that all shareholders should consider before starting the process of selling their business…
Imagine the picture. As a business owner you may have spent most of your working life building your company into the success story it is today. And let’s face it, you are likely to be emotionally attached to it and probably have some idea of what it might be worth when you come to sell. But is that achievable?
Thinking like a buyer is a valuable exercise.
Buyers are choosy and generally dislike too much risk. To minimise risk, they will seek to negotiate on price and structure. So, what are the risks in your business?
- Too much reliance on you?
- Too much reliance on a customer?
- Declining market for your products?
- Low profitability and cash generation?
- Lack of investment in assets or people?
- Weak management team?
- Too much rivalry amongst the competitors in your sector?
- Lack of a competitive advantage?
If you answer yes to one or more of these questions, then your business may not be as attractive as you thought it was and you may have to settle for less than you would like.
The moral of the story? Think like a buyer now and mitigate your risks because it might be too late to do anything about it when you decide to sell or get that unsolicited approach.
Speak to us today for tailored, strategic business advice to help you get where you want to be.