A recurring theme I encounter when meeting business owners who want to sell is that their business simply isn\u2019t in a strong position to go to market.<\/p>\n\n\n\n
Recently, I\u2019ve been working with a client in the building services sector who wants to sell his business. Until a few years ago, the company was achieving consistent annual growth and healthy profits. However, after stepping back from the day-to-day operations without putting an effective management structure in place, the business stagnated and became loss-making \u2014 hardly attractive to potential buyers.<\/p>\n\n\n\n
Working closely with his accountant, we agreed a clear turnaround plan. He returned to the business full-time and is now developing a senior team member to manage the company effectively in the future. Importantly, the business is now projecting record turnover and profit this financial year, making it attractive to buyers once again.<\/p>\n\n\n\n
So the question every business owner should ask themselves is:
Is your business EXIT READY?<\/p>\n\n\n\n
To be truly exit ready, a business should demonstrate:
\u2705 A proven track record of profitable growth
\u2022\tGrowing profitable turnover
\u2022\tStrong profitability, ideally with year-on-year growth
\u2022\tRecurring revenues and strong customer relationships
\u2022\tA healthy order book
\u2705 Transferability
\u2022\tA strong management team that will remain with the business
\u2022\tA business that is not dependent on the owner to survive and prosper
\u2705 Strong governance
\u2022\tA shareholder agreement in place
\u2705 Due diligence readiness
\u2022\tUp-to-date financial reporting
\u2022\tAccurate company records and performance data
\u2022\tCurrent contracts in place
\u2022\tLegal disputes resolved
\u2022\tAn up-to-date asset register<\/p>\n\n\n\n
Preparing a business for sale takes time, planning, and the right advice. The earlier you start, the better your outcome is likely to be.<\/p>\n\n\n\n
If you\u2019d like to discuss preparing your business for sale, contact Weybrook Business Brokers or email Rupert Trevelyan at rupert@weybrookbusinessbrokers.com.
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