What should you consider when selling your business?
We occasionally deal with clients planning to sell their business at the Lombard Accountants office. When you decide it’s time to sell your company, you’ll want to get the best deal possible. And the sooner you start thinking about selling, the better, so your company is in the greatest possible situation to attract an investor.
We also know that the more appealing your firm seems in the market, the higher the price you’ll get or the higher the return you’ll get when selling your company shares.
We understand how important your company is to you, but a buyer will be more objective and realistic. Here’s a list of things to consider from the Lombard Accountants team when you are planning to sell your business.
- Invest in adding value – Keep profits in the business, sell assets you don’t use, reduce your personal drawings and plough that money back into the business.
- Work on your documentation and reports – A potential buyer will want to look at your business plan and solid financial reports to ensure they are buying a sound business with attractive profit forecasts.
- Have a proper exit strategy – With a plan that has agreed targets, so you can track and measure whether goals are hit, and a strategy your team can get behind.
- What’s it worth? – The value of something is based on what the market is prepared to pay but the value of a business will also be based on the profit you make, the assets held, intellectual property or what it would cost a potential buyer to build the business up themselves.
- Communicate with the team – Make sure you have communicated with staff and stakeholders for the best outcome.
- Consider where your buyer might come from – Competitors, investors, employees. You may already know your buyer. Make sure you have the help you need to navigate the negotiation process.
If you would like to discuss your business needs. Call Lombard Accountants on (01) 678 9960 or email hello@la.ie
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