If you have grown your business to the point where it is time to take the next step you have two choices. The first business choice is to look for investment opportunities to take your business to the next level of growth with you at the helm, or take the plunge and sell your company.
Reasons to Sell a Business
Selling your company isn’t always bad news. There are a few reasons why you might feel like it is time to sell your stake in a company:
Tired of Risk – All new businesses have a number of risks at play at any given time. You are more likely to take risks at the beginning, as there is less for you to personally lose. As your company grows, so do the scale of the risks you need to take with each major decision. If you have become tired of making those kinds of decisions it could be time to sell up.
Right Time to Sell – The value of your company might be at the peak for what you have put into it. The next phase of development might require expertise that is beyond your skill-set and now is the optimum time to make money on your initial investment and leave your baby in more suitable hands for the next step of business growth.
Want More Time for You – It isn’t always a purely financially motivated choice to sell a business. If you have put your blood, sweat and tears into growing a company from scratch you might now just be in need of a change of lifestyle. After years of making the big decisions on a daily basis, the time is right to have some quality family time, or for you to invest in other personal passions.
The process of selling a business isn’t necessarily a straightforward one and much like you would hire the expertise of individuals who can help you grow certain aspects of your business that you don’t fully understand, why wouldn’t you do the same to gain maximum value for your business if you are looking to sell?
Sales advisors are there to help you get the best price for your business, to negotiate on your behalf to potential buyers and to smooth, an often-complex process. When looking for the right team of advisors there are a few pointers to consider.
Experience of the Process – Each sale is unique, with different considerations, but it is best to choose assistance from a team of advisors who understand the complex landscape and have experience of dealing with myriad obstacles and industries. Having someone on your side that understands your business and specific marketplace is vital to extracting the correct value for your company.
Investigative Attitude – If you were buying a business you would perform due diligence, looking in-depth at the current business owner to ensure what you were purchasing was of accurate value and had potential. The same should be considered when a buyer is found for your business. The last thing you want to do is to agree to a sale to a buyer who hasn’t got the financial clout they have proclaimed, or see your business falter not long after selling due to poor planning from the buyer.
Easy to Communicate With – In any form of business relationship, alongside the skills being solid to perform a job role to the best of each individual’s ability, communication is a key factor. Getting along well with your business advisors’ and as a group they demonstrate a willingness to listen when required, when to be playful and have a laugh and a joke, and when to be serious and get to the nitty-gritty of the business detail is important. You don’t want a boring, uninspiring person negotiating on your behalf, or someone likely to lose their temper and put the agreement at risk.
Clear Price and Time Commitment – It is important that both parties are clear from the outset about the prices involved in a successful negotiation of sale. Be clear with the advisors about what it is you are looking for exactly, in terms of prices and the types of buyer you would like your business to be sold to. After that, there has to be clear agreements about when and how your advisors are paid, and for different phases of responsibilities during the sale, from finding a potential buyer, to negotiations and finalising a sale.
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