What are the first steps for selling a business?

·         Make sure shareholders have all decided it is the time to sell.

·         Have a good business plan in terms of forecasts that can stand up to interrogation, ensure litigation is tied up, that current year trading is good and growth is good.  Make sure business is in good shape.

When should you bring in a financial advisor?

·         If you are approached by a company you know, a financial advisor can help to manage the transaction.

·         To maximise shareholder value a corporate finance advisor will conduct an offer process to several potential buyers, and shareholders can decide which offer to accept.

How can companies maximise their valuation?

·         Companies shouldn’t go to the market until they have got a few years of growth (with potential for more in the future), and good future projections.

·         Any litigation and employee disputes should be tied up.

What are the common issues/pitfalls when selling?

·         Selling is a big drain on management time (and management need to be aware of this).

·         Issues to do with staff – What to tell them?  When to tell them? etc.

·         You shouldn’t be downhearted if the obvious buyers don’t want to purchase your business – it’s probably not the right time for them.

·         Be wary of potential buyers who take part in the process to learn about your business, and actually have no intention of buying.  A corporate finance advisor will make them show their commitment.