It should come as no surprise that selling a business is a notoriously long-winded, complex, and, at times, stressful process. It involves a lot of upheaval but, if you’re ready to exit the business and consider selling to be the best thing for all involved, it will be worth the disruption in the end.
Get legal advice sooner rather than later
Selling a business is a unique process – and one that most of us are not equipped to handle on our own. From the broad considerations to the easy-to-overlook minute detail, the only way for you to ensure that your business is going through the process in the best way possible – both for you, and for the business itself – is by working with a corporate solicitor.
Consider how selling will impact the business
Selling a business is one of the biggest changes it could go through. While it is not the most impactful way for you to exit the business, there are some alternative exit strategies that are likely to have a smaller impact on the employees of the business, and make the transition to this next stage smoother.
From management and employee buy-outs to passing ownership of the business onto a new generation within your own family, there are alternatives to consider.
Prepare the business to go through the sales process
One of the biggest (and most time consuming) aspects of selling a business lies in the preparation. From getting the business’s financial statements in order to preparing your workforce for a big change – and ensuring that they don’t lose faith in the business’s future as a result of this news – preparing for a sale can turn into a full-time job. This is just another reason why working with the professionals – solicitors, chartered accountants, etc – is so important.
Establish a clear business succession plan
Ensuring that a business is prepared to weather the storm of a transfer of ownership often rests on management – and whether or not a reliable plan has been put in place to ensure that, for your employees and clients, business continues on as usual. Creating a succession plan is a big job, but it’s crucial – identifying key talent (the business’s future leaders) and ensuring that they are equipped to take over when you make your final exit.
Get a business valuation
Getting an accurate valuation is absolutely vital. This is another aspect of selling-up that you don’t want to tackle on your own, since, without experience in valuing businesses, you cannot be sure that you won’t overlook some high-value asset – or let bias get in the way.
Consider how you’ll protect your interests
While it’s important to focus on the business, and how you can keep it healthy throughout the sales process, it’s also vital that you take the time to sit down with your solicitor, and talk about your own interests, too. Namely, it’s important to think about protecting the assets you generate through the sale of your business against things like inheritance tax – minimising its impact, and only leaving your loved ones to pay what is absolutely necessary in the future.
