How to Sell Your Business for What it’s Truly Worth (Sheffield)

Posted on 9 February 2012 by karen

We will be running a  seminar session at Electric Works in Sheffield on 7th March click here for further details.   

Electric Works is a state-of-the-art contemporary office space for creative, digital and media businesses based in Sheffield. Come along even if its only to say hello.

Often business owners do not enjoy the sale price they expected after many years of hard work.  This presentation highlights through practical experience, case studies and war stories the pitfalls which can easily be avoided and tips to ensure you sell your business for what it’s truly worth.

We have prepared a number of our clients for sale and likewise helped a number of our clients purchase companies so we have experience of both sides of the negotiating table. We can tell you, without doubt: it’s all in the preparation!

“By failing to prepare, you are preparing to fail” (Benjamin Franklin)

Here are the top ‘dos and don’ts’ on how to sell your business for what it’s truly worth.

Do

  1. Start the process early – at least a year before you want to sell
  2. Identify your value enhancers, make sure your business plan compliments your exit strategy
  3. You can go a long way to manipulating your exit process through the partnerships and channels you establish
  4. You will get a greater value if you don’t have to sell and if you can make it a competitive process
  5. Bring in non-execs or advisors who have done it before
  6. Tie up all those loose ends – unsigned contracts, updated contracts of employment, new sales term increase prices, IP
  7. Sort out outstanding shareholder issues, these will nearly always come to the surface during a sale process.

Don’t

  1. Take the first offer that comes along or exit too early – £3m will make a much bigger difference to you personally than £1m i.e much more than three times
  2. Appear desperate, especially if you have had a difficult trading period and have just recovered – the temptation to sell while the going is good is sometimes overwhelming
  3. Ignore difficult issues – unhappy shareholder, difficult member of management, customers about to cancel. Sort them out before you start
  4. Leave any loose ends! The process will take longer than you think and loose ends will unravel
  5. Forget you need to pay for good advice – but not until you need it

If you would like to come along contact info@electric-works.net to register.