The end of an era?
Now that the dust has settled over the pre-budget report, it is an ideal time to consider the implication it will have on company sales in the SME market.
Continue Reading...Preparing for due diligence
I have mentioned before that the key to a smooth transaction and therefore maximising the value you will receive is preparation.
When selling your business you may receive several visits from advisors dealing with financial, legal, commercial, environmental, property and pensions due diligence. It may seem that you are asked for the same paperwork thousands of times.
To keep you sane, I have a few tips :
Exit strategy? - be prepared
It may sound obvious, but I thought I would raise the issue of ‘preparation’ in business sales as many transactions I have been involved in recently have illustrated a distinct lack of it.
I have written previously about making the business as autonomous as possible from the current owners – this is the key method to successfully inflate your sales price. There are several other simple procedures which a vendor should undertake
Continue Reading...Make yourself Invisible!
The most simple way to add value to your small / medium size enterprise is to make yourself, as the owner, as un-important to the business as possible.
Contract negotiations – Let someone else do it
Finances – Read the accounts, don’t prepare them
Customer relationships – Leave it to your number 2
Making sales – Teach somebody else
Whilst this is extreme, the principle is still important. The owner should provide strategic guidance, ensure relevant controls are in place and supply relevant training to staff. If the owner is too important in any of the operational areas mentioned above, the value of the business will be intrinsically tied to them as an individual. This can have a serious effect on the company valuation, when you look to exit the business.
