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Selling Your Business - Where Do You Start?
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M&A Markets Blog Feb 20

Selling Your Business - Where Do You Start?

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11th Feb 2020

Published Date: 11-Feb-2020
#EntrepreneurSeries


This is a great time to sell your business - there are record levels of funds available and there is a growing international as well as a local market for businesses.

So where do you start? You need people who are experienced in selling businesses and even in that group there are a range of skillsets required:

  • Preparing your company and you for the sale
  • Maximising the Value of the company
  • Valuing the company
  • Finding, negotiating and closing with a buyer

For this you will need an accountancy firm. Your current firm may have the skillset to guide you through the sale, but are you sure that they can deliver the best deal for you? Here are a few tips on making that assessment:

  • Ask what value of businesses they usually sell?
  • Ask them how they will find bidders (outside of their own circle)?
  • Ask them if they can do all this in a confidential manner without revealing details of your intended sale to your competitors?

These may be difficult areas to probe if you have had a long relationship with the firm (particularly as it may cause you to take your business elsewhere) but this will be one of the key business deals of your life and the outcome will have permanent life changing effects on you and your family.

The first two questions are straightforward - do they have experience of the preparation, valuation and sale of business and importantly do they operate in your valuation zone? A firm who operates in deal sizes significantly higher or lower than that of your company may not have the experience to get you the best bidders for your business.

Next, when speaking about how they would find bidders for your firm, do they have the reach and resources to access buyers outside of their own circle? This is particularly important as issues like Brexit and recent US government trade decisions are leading to a growth in cross border deals and opportunities.

If you are of an age or position where exiting your business should be on the table and you meet your accountants at least annually, has the subject of exit planning ever been raised? Maybe now is the time to do it with the people who know your business best.

You worked hard to build your business to be a saleable proposition. The accountancy firm that you choose will have to be willing to push just as hard to get the best deal for you while guaranteeing you confidentiality. Make sure by your choice of advisor that you have the right team behind you.

Always #TalkToYourAccountant for professional advice.

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Making the Deal happen!

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“Always talk to your accountant during any deal”
– Tim Counihan twitter social icon Tweet

CIEX provides accountancy firms with anonymous access to a national and international network of accountants who specialise in buying and selling businesses on behalf of their clients.


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