Selling a Business

1. The Decision to Sell

1.1 Plan ahead.

• Think about the possible sale of your business several years before you intend to start the process. Good planning will help you maximise the value you get.
• Consider other ways of exiting from the business. You may be unable to find a buyer so you should look at options such as a management buy-out or passing the business on to a family member.

1.2 Be clear about your reasons for selling.

• Common reasons include making as much money as possible, protecting your financial future, moving to something new, retirement or ill health.
• You may feel the business and staff have better prospects under a new owner.

1.3 Write down your specific objectives. These might include:

• Sell by a given date.
• Sell at a target price, or at least at a fixed reserve price.
• Receive immediate payment in cash of at least a certain amount.
• Continue (or not) to be involved in the running of the business.
• Secure the jobs of your employees.
• Minimise personal tax liabilities - early tax planning and advice is essential.

1.4 Pick the right time.

• Consider the economic cycle.
• Sell before your market declines.
• Consider any forthcoming tax changes.