You’ve worked hard over the years, built up a good client base, and are making profits – but now you want to sell up. So what do you do?
Exit planning and business sales specialist Peter Kroeger recently delivered a presentation to Wealden Business Group, in which he outlined some of the key factors involved.
They included:
- Selling a business is never easy.
- You need time – minimum 12 months, and ideally two-to-four years.
- Be realistic in your aspirations – ‘par’ rate for current business sales is three-to-four times net profit.
- Your key attributes for sale are rising sales and profits, and increasing profit margins.
- An ideal sale scenario is if you have a marketing plan which delivers leads, and the systems to convert them into sales without your personal involvement.
- Identify, and address, weaknesses standing in the way of a sale – for instance lack of competitive service, weak management succession, or poorly administered customer contracts.
- Understand that 75 percent of businesses never sell, while a further 17 percent are sold for less than their potential maximum.
- Selling your business can be crucial for your future financial health and happiness – we are all living longer, and current pension yields and investment returns are poor.
- Once your business is sold, are you willing to stay on for an agreed period, or is there a management succession in place?
For further information, contact Peter Kroeger – email [email protected] or tel: 01892 731272/01926 730479.