The best time to make your plans to sell your business are when you don’t have to. Sounds counterintuitive doesn’t it? Planning properly will stop
The best time to make your plans to sell your business are when you don’t have to. Sounds counter intuitive doesn’t it? Planning properly will stop you falling into the trap of ‘I need this sale’ which may force you to accept an offer you don’t really want. When pushed into a corner, you may not be able to maximise the value of your business.
Having a properly thought out exit strategy means you can carry out your own due diligence into your own business to understand where the gaps lie and carry out your own risk assessment. You may find a contract is not as water tight as you once thought or your employee handbook is not quite up to date. It also means you can consider whether you want to sell the shares in your company or whether to sell the business and assets; this is likely to be driven by tax advice and can help you shape the way you look at your business as you continue to trade.
A clear and defined exit strategy helps to plan timescales, negotiate multiple offers and manage your sale price expectations. You may even find your buyer works in the organisation and a management buyout could work out well for you.
The best time to sell your business is when you are ready. The best time to plan for the sale is now.