Selling Your Business

Q: I am thinking of selling my Company. What advice would you give me?

A: If you are thinking of selling your business, there are lots of things you need to take into consideration, and many steps to prepare. Making strategic decisions will help you achieve the highest possible valuation for your company.

Here are some points to consider when planning the eventual sale of your business:
-Prepare Early – You need to start thinking about ways to maximize profitability before deciding to sell your business. Look for opportunities to remove non-business assets and focus on spending and expense control opportunities.
-Strong Financial Controls and Processes – Reliable financial statements and accurate, timely
reporting are attractive features that often influence a buyer’s decision. Presenting your
business with solid cash flows, strong management teams and lower capital expenditure
requirements, will position your business as an attractive acquisition.
-Reduce Customer Concentration – To many buyers, an ideal business has a broad customer
base with little customer concentration. Try to ensure that signed contracts with major
customers are in place. This will provide potential buyers with confidence that customers will
be retained post transaction.
-Realistic and Supportable Forecasts – To most buyers you’re selling the future and future
cash flows. Have a realistic and supportable forecast. This points to the credibility of
management and can further demonstrate the underlying value of a business
-Seek Professional Advice – Advice from professional advisors can provide you with sizable
savings and add value. Hoare Chartered Accountants advise on a number of Mergers and Acquisitions. We manage the process for our clients enabling them to continuing focusing on the core business. Our professional approach ensures that each transaction is structured in a tax efficient manner with an emphasis on creating value for our clients.