Painting the garden fence, putting up shelves, maintaining a classic car – there are plenty of occasions when it’s fine to DIY but negotiating the best deal when selling your business is not one of them. Although it may appear to be an easy task on the face of it, ask anyone who’s sold a business and they’ll tell you it can be a minefield riddled with potential mistakes, so you should engage a corporate finance company.
Achieving maximum value in the sale of your business requires deft navigation of a complicated process and very careful negotiation skills that can only be refined with the benefit of experience.
Hindsight is 20/20, as they say. So, if you’ve decided it’s the right time to sell your business and you want to negotiate the best exit deal, get the guidance of a successful corporate finance company who’s been there, done that , got the t-shirt…and probably sold the t-shirt! Here’s 3 reasons why…
1. Perspective
Chances are, you’ve been running your business for some time and it plays a major part in your life. More than one of our clients has described selling their business as being like a child that they’ve nurtured over time – but now they’ve grown up and it’s time to step back and let go. For many business owners, the emotional fog around selling a business can obscure their view of the company’s strengths and weaknesses and it certainly hinders effective negotiation.
In contrast, an external consultant from a corporate finance company such as Entrepreneurs Hub has less emotional investment and can provide the clarity that’s so vital to an honest evaluation of your business. The insights this provides will help you work together to get your business ready to sell and market it to the right buyers. Your deal lead adviser might even reveal that your business is worth more than you realise. Ultimately, the outside perspective and emotional detachment of your deal lead adviser will enable them to take a stronger, more impartial stance throughout the negotiation process – one that will facilitate a sale for maximum value.
2. Connections
You’re well-associated in your industry but it doesn’t compare to the broad scope connections that an expert team at a corporate finance company can offer you. For example, we have a vast database with worldwide reach to identify and target potential buyers.
Corporate finance companies like ours can supply you with access to multiple acquirers, enhancing interest in your business and encouraging healthy competition for the sale – which, combined with an expert craft in negotiation, will help get you get a better price. Not only that, we can arrange and moderate at meetings with acquirers, armed with foresight into which questions they’re likely to ask and what they’ll expect to see in terms of documents. You’ll also benefit from connection to a tried and trusted selection of specialists in intellectual property, tax, legal, contracts and litigation.
3. Focus
Selling a business isn’t an overnight process – you’ll need to play the long game and preparation is the key to success. This involves detailed pre-diagnostics to examine the current position of your business; looking at your business model and structure, strategy and financials, sales and marketing, key members of staff, shareholder objectives, IP, compliance, and contracts.
Experts in corporate finance will help you assimilate and apply this information to set clear objectives for sale and design an appropriate exit strategy. The implementation of this strategy is immersive and time-consuming, posing a huge challenge when you’re still trying to juggle the day to day running of a business alongside that. Leaving it to the experts allows you to focus on the business first and foremost, so the pre-sale and negotiation process is far less likely to become derailed by time and resource constraints. Your designated project team can focus 100% of their energy on selling your business, without the distractions you might face.
Want to sell your business – the right way? Entrepreneurs Hub is an approachable and experienced corporate finance company, here to help you prepare your business for sale and negotiate the best deal so that you can realise your future aspirations. Contact us in confidence to find out more about how to sell a company for maximum value. Call 0845 067 8678 or email [email protected]
