Selling a Privately Owned Business – Briefing 3 – Planning for Sale
our Blogs on selling a privately owned business, the next in our logical series
is to consider basic early planning considerations, outlining below the key
steps in a normal sale exercise.
The process always starts with early
planning. Long experience shows that
even if you don’t intend selling in the immediate future, planning for when you
do wish to sell is crucial.
Below are ten key issues to consider in getting
your business into the best possible shape for your exit.
- Ensure all shareholders
are in agreement and agree sale objectives from the start.
- The best time to sell
is when you are in a position of strength.
Consider your trading profile and aim to exit when profits are
increasing and likely to grow further.
- Try to time the sale
to coincide with general confidence in the economy and particularly in your
- Consider the impact
of any trading cycles or seasonal changes in your business.
- Make sure your
financial accounts are up-to-date and give a true picture of the business.
- Put a good management
team in place, and as far as possible make yourself dispensable post sale.
- Review your customer
base. Identify key existing and potential customers, and ensure any contracts
are properly in place and up-to-date.
- Ensure any intellectual
property rights are properly identified and protected.
- Attend to
housekeeping issues. Look at your
business property, equipment, and general internal matters.
- Last and by no means
least, consider a buyer’s viewpoint.
Identify potential future growth and think about what would be
attractive to buyers.
undertaking this planning it’s important to maintain a realistic perspective on
the whole issue of the sale, including value, and also practical matters. In
particular, it’s all too easy to under-estimate the time and effort required to
complete a successful sale, so as always, specialist advice and support can be
will follow over the coming weeks in this new series of blogs on the whole sale
process and related matters.
16 September 2019