{"id":985,"date":"2016-11-01T16:17:16","date_gmt":"2016-11-01T16:17:16","guid":{"rendered":"http:\/\/www.withcreative.co.uk\/dev\/selling-your-business\/"},"modified":"2021-04-14T13:13:25","modified_gmt":"2021-04-14T12:13:25","slug":"selling-your-business","status":"publish","type":"post","link":"https:\/\/dev.withcreative.co.uk\/langricks\/selling-your-business\/","title":{"rendered":"Selling Your Business"},"content":{"rendered":"
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Disposing of your business is a significant life event. You might be relying on the proceeds to fund a comfortable retirement, or as capital for the next phase of your business career.<\/p>\n

You may know the approximate timing. Quite likely, you have a figure in mind to fund the future you have planned.<\/p>\n

But things may not turn out as you hope. In our experience, the target sale figure is often based on the amount business owners feel they need. It may not be a realistic valuation based on trading, assets and projected cash flow.<\/p>\n

Our first question is fundamental: Do you have a clearly defined strategy to make sure your business is worth the amount you need, by the time you plan to sell?<\/strong><\/em><\/p>\n

On the face of day-to-day business pressures it\u2019s easy to leave it too late to start implementing detailed plans.<\/p>\n

Because there\u2019s no strategy leading up to the sale, many business owners end up working on longer than they wanted to. Or they have to change their expectations for their retirement lifestyle.<\/p>\n

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You will only sell your business once<\/h2>\n

Selling your business may seem like a far-off prospect but the earlier you start making realistic plans, the better.<\/p>\n

A three, five or, better still, ten year timeframe is probably what you\u2019ll need. That way you can take positive steps to make your business as attractive as possible. This is clearly better than hoping that somebody will agree with your valuation aspirations.<\/p>\n

Business disposal – the key questions:<\/strong><\/p>\n

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  1. \n

    What is your business worth today?<\/p>\n<\/li>\n

  2. \n

    How much does it need to be worth at disposal?<\/p>\n<\/li>\n

  3. \n

    How will you bridge the gap between current and desired value?<\/p>\n<\/li>\n

  4. \n

    How long will this realistically take?<\/p>\n<\/li>\n

  5. \n

    Who is the most likely buyer: trade, private equity, MBO or public listing?<\/p>\n<\/li>\n<\/ol>\n

    These questions are not hard to answer in theory. But it\u2019s practice that counts. Achieving your ambition needs strategy, planning and execution.<\/p>\n

    \u201c without strategy execution is aimless, without execution strategy is useless\u201d<\/em><\/span>. \u00a0Morris Chang, CEO of TSMC.<\/p>\n

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    Bridging the valuation gap<\/h2>\n

    There will almost certainly be a gap between where you are, and where you want to be. This is where the serious work starts. There are questions that need hard-headed answers:<\/p>\n