SOME QUESTIONS EVERY BUSINESS OWNER
SHOULD CONSIDER
How can I be sure that I get the right price for my business ?
Take appropriate professional advice now and in the future to guide you through the whole process. Use the ‘right’ valuer, and find the right buyer. The right valuer may need to be a specialist (see our case studies). The right buyer may not even feature in your thinking. Start early and plan for the sale/exit. The exit plan should be part of your everyday thinking.
How can I be sure of paying the minimum of tax?
Take appropriate professional advice and plan early. Much taxation is voluntary and can be minimised by planning in advance – don’t volunteer to pay more than you need to. Unless, of course, you’d rather pay the taxman than keep it for yourself or your family.
How do I find the right buyer?
Take appropriate professional advice and plan early. The answer may not be simply to hand the business to a business sale agent. They can only sell it to people who are looking to buy it – your purchaser may be an unknown.
And, is it really a good idea in business to advertise that you are looking to sell? Might that put out the wrong signals to a number of people, and could it have an impact on your negotiating position?
How do I really feel about being tied in after a sale?
Be completely honest with yourself – is this really what you want to do?
If so, why aren’t you working for someone else now?
If you can do it - for how long? 1 year, 2 years…or longer?
How much does it influence your price?- e.g. would you consider accepting less money for a ‘clean break’?
This should be part of your negotiations so that you get what you really want, and not only in money terms.
My children will take over the business, won’t they?
Are you sure? Have you asked them?
Are they capable? Do they really want to?
Can you leave them alone to run it as they want to? Will they let you stand back if they’ve been relying on you for years?
Will it pay enough for you all to live, or have you got other money to live on?
It may be the right answer but it could still be worth considering a complete exit for you and helping the people taking it over to fund a buy-out.
My sales director/production manager/right hand man or lady will take over the business, won’t they?
Are you sure? Have you asked them?
Are they capable? Do they really want to?
Can you leave them alone to run it as they want to? Will they let you stand back if they’ve been relying on you for years?
Will it pay enough for you all to live, or have you got other money to live on?
It may be the right answer but it could still be worth considering a complete exit for you and helping the people taking it over to fund a buy-out.
What you may find useful:
The role of a strategic partner in this process is to act as your ‘critical friend’ to help you to make the right decisions throughout.
They will do this by challenging your thinking so that every option is considered and explored until it becomes defunct or a ‘right option’.
Objectives are set and managed to achieve the optimum result – Helping you to keep more of what you make at the time of the exit.
|
