Thinking about selling your business? Here’s what you need to know
14th January 2025
When thinking about selling your business, there are steps you can take to ensure that you achieve the best price for your business and the transaction proceeds smoothly. Selling your business requires careful planning, and a comprehensive understanding of what your business is worth.
In this week’s corporate and commercial blog, Jen outlines some of the key things to consider when thinking about selling your business.
- Be clear about why you want to sell your business: Some common reasons for selling a business include retirement, health issues, partnership disputes, or an interest in pursuing other opportunities.
- Prepare Your Business for Sale: This involves organising your financial records, documenting important operating procedures, and ensuring your business can operate smoothly without your direct involvement (if you are planning to retire!). Clean and accurate financial records are crucial. Getting organised will help with the due diligence process and reduce the likelihood of delays. Having documentation and records readily available demonstrates a clean and tidy business which is attractive to buyers.
- Get a Business Valuation: Determining the value of your business is critical. You can hire a firm to value your business or use online business valuation calculators to get an estimate. The valuation will consider factors such as your business’s financial performance, industry, and market conditions. Your accountant can also help you understand the value of your business by analysing your financial statements and providing insights into your business’s financial health.
- Hire a Broker or Advisor: Depending on the complexity of your business, you might look to hire a business broker or advisor to help you navigate the selling process. They can assist with finding potential buyers, negotiating terms, and ensuring the transaction goes smoothly.
- Market Your Business: Once your business is ready for sale, you will need to market it to potential buyers. This can involve listing it on business-for-sale websites, contacting potential buyers directly, or using a broker’s network.
- Negotiate and Agree Terms: When you find a buyer, you will need to negotiate the terms of the sale, including the price, payment terms, and any contingencies. Once both parties agree, heads of terms will be entered into and you will move forward with completing the deal, which involves finalising the legal and financial aspects of the transaction. Depending on the complexity of matters, timescales range from 8 – 12 weeks.
How can Myers & Co help?
At Myers & Co, we offer support throughout the entire process of selling your business. Our experienced team can provide expert guidance on preparing your business for sale . We are dedicated to ensuring a smooth and successful sale, tailored to meet your needs and objectives.
For further information, please contact Jen Goodwin, Head of Corporate & Associate Director on 01782 491025 or email jen.goodwin@myerssolicitors.co.uk. Myers & Co has offices in Stoke-on-Trent, Staffordshire.
