Reasons to choose Wilson Browne
With so many businesses closing their doors during the coronavirus outbreak, you might think the answer is ‘no’ and some might say that a good time to sell is when your business is thriving.
But it can be hard to judge when exactly this is and even harder to judge if that truly means someone will favour purchasing your business. Ultimately there is no perfect time to sell, even if there was, you would never know this time had come until it had already passed, rendering it impossible to spot beforehand.
We are without a doubt living in unprecedented times, and certain market factors will always affect business sales. Nevertheless it is clear to see that the recovery plan for the UK economy is already underway as the market becomes less risk adverse and banks begin to lend again.
Unlike selling property, the process of selling a business is not usually a quick one. Some businesses are in demand and can spark immediate interest, for others it can take a while to source an appropriate buyer.
The legal process of selling/buyer can also be lengthy and to ensure an efficient and organised sale, you must have the correct people and processes involved. One of the ways you can make your business more attractive to potential investors is diversification.
You should have more than one kind of income or one type of customer and the businesses goodwill should not rely solely on you or another individual. Businesses sell best when the brand is what gets people talking and provides repeat and new custom.
One thing the market is seeing a rise in is Management Buy Outs (MBO’s). Succession planning takes time, and although a succession deal is typically a lengthy process, selling to a management team can be less disruptive than a traditional sale and therefore can be a quicker route out of the business.
Another factor to consider but not to be hindered by is Brexit, and whether the upcoming governmental decisions on Brexit could affect your business and its profitability. The key thing to remember is that if you want to sell your business, you have to be patient.
It may be quick or it may take some time, remember to look for a good time, not the perfect time and to always seek legal advice before agreeing to any final deal.