Before you consider selling your business, ensure that you have a clear understanding of the objectives of each shareholder.
Before any disposal process starts, shareholders must have an open and honest discussion to define and document their expectations in regards to the following key considerations:
Value of the business.
Desired timelines.
Preferred exit route.
Expectations regarding post-transaction involvement and investment.
In addition to clearly defining the expectations of all business shareholders, there are a number of key pre-sale considerations to review.
Think about what a potential acquirer would like to see – good financial performance, growth prospects, visibility of future income, a strong management team and a diverse customer base are just a few of the key elements to consider. Could your business demonstrate each of these to a potential acquirer?
At the heart of any thriving business, and key to ensuring that it maximises its potential, is a clearly-defined strategy.
All business activities, including exits, must be placed within the relevant strategic context to ensure they generate the maximum possible value for shareholders.
If you are looking to exit your business, taking the time to define and document your business strategy provides an ideal opportunity to set a clear direction for the future of your business which will be key when marketing it to potential acquirers and assessing their strategic fit with your business.
Our approach to strategy is to break it down into meaningful elements with a focus on execution, delivery and value generation.
Planning and preparation is key if you are thinking of selling your business.
If you are looking to exit from your business in the next three to five years, now is the time to invest in developing your exit strategy and ensuring you have a clear focus on making it a reality moving forward.
Ciara Blackwood is head of strategy and business transformation at Anderson Anderson & Brown.
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