Selling your Business.

Sellers

Is it the wrong time to sell?

It could well be. Buyers think it's a buyers market - more so because of the Pandemic - and if you are a covid proof business it's unlikely your asking price and a buyers offer will match at best, and at worse, you may find any offer insulting. Butler Consultants works hard to manage expectations of both parties and that comes from effective qualification and assesment of the appetites of the buyer and the seller, to complete a deal.

How should I prepare for the sale?

Do a deepdive, prepare an Investment/Information Memorandum. This can be achieved more effectively by engaging a third party who is not emotionally attached to your business. Turn those stones over before a buyer does. Understanding your weaknesses will put you and your potential business sale into a position of strength. 

Butler Consultants can assess whatever you have created to prepare for sale and happily give you some feedback on how to finesse or improve it.

Who should I approach to help me prepare for sale? If you have enough experience and confidence that you can come to an agreement with a buyer - you only need a good Accountant and Lawyer to get the deal to completion. Should you require additional support then you may want to consider the services of a corporate Advisory/Broker.

I will not name them here, but there are many Large Brokers/Advisories who I do not work with because of their predatory approach, large signup fees, exclusivity agreements but very little commitment from them to truly understand your business. However, there are a handful I do work with, that have a strong track record of success and more importantly offer a fair service and will support you throughout the sale process - and I am more than happy to introduce them to you. 

What If I do not want to work with a traditional Corporate Advisory/Broker?

Absolutely fine - If you are experienced enough around the process, your key people are your Accountant and your own Lawyer - and Butler Consultants of course.

How should I value my business?

At a minimum, any covid proof profitable business should in my opinion be viewed on a 2.5x-4x multiple. There will also be further consideration for any spare cash in the business (i.e., Balance Sheet less working capital required to operate the business) and the property value on top of the Goodwill - there are also elements that will reduce the sale price - distress, debt or quick sale. It’s very rare that a deal will complete without an element of Earn Out / Transition. Happy to explore all of the possibilities that will ensure you are comfortable with the exit that is right for you.

If you have any questions around our services please call our team today on 01903 298 110, or drop me an email directly ian@butler-consultants.co.uk . 

Looking forward to hearing from you.
Ian

Ian Butler

Call us today on 01903 298 110 to discuss your requirements or email ian@butler-consultants.co.uk