How to sell a business and to achieve maximum deal value requires a sound understanding of how you create and communicate the value of:
- the key drivers in your business?
- your differentiation from your competitors?
- your competitive advantage?
How do all these factors add together as to how to sell a business for maximum value and how will they be valued by a buyer? The sale of your business can be one of the most stressful events in your life. It is often a very significant decision and can be brought on under various circumstances. It may be a decision to retire, change in lifestyle, health reasons, succession planning (or lack of). It could be to realise the value you have created over a long period of ownership or, in some cases, a method to move the company to the next stage of growth, to access capital, recapitalise the business and install professional managers.
In many instances, this may be the first sale of a business for you. You may have bought a business or two before, added a division however how to sell a business is a very different process. A key question is what is the best way to sell it, to maximise the value, to ensure your staff are looked after and also to leave a legacy and a sense of pride? Are you experienced or suitably qualified to sell your business?
Who will Sell a Business
Most often, business owners turn to their accountant or lawyer to assist in the sale process. Both are generally good at providing legal and financial advice however are often not well-practiced in marketing, selling and negotiating the final sale of a businesses. They will be a key part of the sale process and provide input based on your individual financial and legal requirements. It is however important to seek out and retain the services of someone who is experienced in business sales. A suitably experienced intermediary who understands your market, conducts the marketing and sale process and has experience in negotiations is vitally important to ensure you sell your business for maximum value.
When to Sell a Business
Selling a business also an extraordinarily demanding physical and emotional process and takes up a considerable amount to time. It is critically important that during the sale process that not only is business continued in the normal way but rather is seen to be improving! The price of a business can quickly be negotiated down if there is a marked downward trend in performance – it is important to avoid this and any other surprises.
Having someone on board who understands your business, can locate and qualify suitable buyers is important. They must be able to explain to the CEO of a potential buyer what the real value of your business is, how it fits into their business and that it will be a strategic and valuable investment. Optimal specialises in working with mid-size business owners to achieve your desired outcomes. As your trusted mergers and acquisition advisor, we advise and discuss each step of the journey and continually keep you informed of progress.
Contact Optimal today for an initial informal discussion – a no-obligation discovery session. We respect and observe confidentiality and are well positioned to advise you on how to sell a business for maximum value.