1. ACCESS TO KNOWLEDGE
HOW TO SELL YOUR BUSINESS
“This was an excellent presentation by Ivor dealing with would be if I did decide to sell it, and what would be most attend the A2K seminars and find these are useful for
attractive to a potential buyer” Susan Heaton Wright, making new contacts” Craig Males, Rayner Essex
wealth management with a particular emphasis on selling
Executive Voice
your business. Whilst I am not currently considering “Both the breakfast and lunch events were interesting. I
www.access2knowledge.co.uk
selling the business, the talk prompted me to look at my “The whole event was very good and the combination of a enjoyed the seminar content and the networking sessions.”
business and its structure; to consider what the value seminar and networking works really well. I regularly Chris Carr, Celarben Ventures Ltd
considered some of this al-
1. Set yourself objectives
ready such as tax mitiga-
tion structures and splitting
2. Educate yourself about the process
the business into different
segments. What continuity
3. Analyse your business
planning have you imple-
mented?
4. Consider appropriate tax and legal structures
www.bakerwatkin.co.uk
still hasn’t been completed happen to it? If you answer it
5. Discretely contact po-
5. Discretely contact potential buyers and you are likely to be would struggle or fail you don’t
tential purchasers; very
providing warranties after
often managed by a third have a real business – just a
6. Negotiate to heads of terms the sale so although you
party to ensure anonymity. contact book and supply chain
are close to transferring
They will screen purchasers with some customers. If you
7. Complete due diligence process ownership still keep a tight
for affordability, synergy want to sell a business it has to
hand on the reigns.
and motivation. Ideally stand up on its own.
8. Maintain focus on operation of your business you want more than one There are of course excep-
9. Contracts are signed; all
party interested to create a tions, you may be an inventor,
negotiations are completed
9. Sign contract and bank money sense of competition be- create ideas, patent them and
and agreed, contracts
tween buyers. sell them because you aren’t
signed, money changes
10. Decide what to do next with your life
interested in the practicalities
hands and shares trans-
6. Heads of agreement; is a
www.bbwlaw.biz
of what goes on in and around
ferred. Sale completed.
legal term that gives one
ONE OF THE BEST attended as a shareholder. Are your
a business. A business, profit
Congratulations.
prospective purchaser ex-
seminars for a while “realising shareholder agreements ro-
centre, income stream, com-
clusivity to look over your
the maximum value from your bust and suitable for your
10. Your creation, your
business. It is not a binding petitor will be more attractive
business” proved very popular. business as it is today?
life’s work is no longer
sale agreement, but pro-
Ivor shares here his top tips to What value does your to a purchaser and sell for sig-
yours. The brand that gave
vides comfort for the
get your business into shape to brand have? What value do nificantly more than a legally
you status in the commu-
prospective purchaser.
conclude a successful deal. your people add? What protected idea.
nity, the world that you
value do your processes If you recognise some of
controlled, your role on a
7. Completion of due dili-
1. Ensure you have clear
add? Can improvements be the points raised in “are you
daily basis – gone. If you
gence; all sale terms are
objectives of what you
made to any of these to in- trapped” the value you will
are a serial entrepreneur or
now agreed, price, war-
want from the sale; think
crease value? Trade mark- realise will be less than you
you are glad to have left to
ranties, HR issues, brand,
beyond monetary value; do
ing, copyrighting, patent- could achieve; you need a re-
tour the golf courses or his-
stock, service agreements.
you want your brand to
ing, intangibles; have you www.jg-consulting.co.uk
view and analysis of your busi-
toric sites of the world this
What valuation clauses do
continue; do you want to
protected your intellectual
ness. A review will also
is unlikely to cause you a
you want? What can you
ensure existing staff are
property? Have you
identify and potentially
problem. For the majority
expect to see in the con-
cared for; how much do
analysed the structure of
though it leaves a big hole remove possible impedi-
tract?
you want to sell for; is your
your business such as mar-
in their life – a significant
expected price realistic; do ments to sale.
8. Maintain Focus; whilst
ket share, customer pro-
change to your world –
you want cash up front
files, supplier profiles, con- all of this is happening it is
Q What hidden value
what are you going to do?
only or will you accept an
tractual income streams important to remember is there in your
earn out (staged payments
and supplier agreements? If you were to be taken ill for a
that the business is still business or would
over a period of time).
Are there majority and mi- while and could not manage
yours and that it still needs you like to create?
nority holdings in your
2. Educating yourself to be managed. The sale your business what would
www.stevenage.gov.uk
A . Such as excellent brand
business and how will this
about the process has
awareness, staff training
affect the valuaton if only a
begun! Research shows that
programmes, staff retention,
part is available for sale.
sellers who have already
creating a new market, patents,
How will a purchaser
gone through the process
trade marks, unique suppliers,
look at your business?
wished they had known
tried and tested marketing
What are they looking for?
more before they started.
You are likely to have been initiatives, knowledge base. A
Email ivor@kwm.cc for
told that your business will
more information on the Intangibles that are not shown
sell for a specific multiple –
research. in the company accounts that
how has this been arrived someone is prepared to pay for
3. Analysis of your busi-
at – is it accurate or because it will add value to
ness starts with your 3
www.hertsbic.co.uk
wishful thinking? their business.
roles; shareholder, direc-
If you would like to have
4. Realising maximum
tor and employee. All have
an informal discussion about
value means that you
different responsibilities
this with Ivor then please con-
want to minimise your tax
and create the shape and
tact him on 01717 870613 to
liability and ensure that as
form of your business.
ensure you realise the maxi-
Selling means that you are a legal entity you look at-
mum value from your busi-
transferring your shares for tractive. For long term
value. Focus on your role thinkers you may well have ness.
Kellock Wealth Management is a trading style of Trinity House Financial
Planning Limited – Highland Suite, Great Hollanden Business Centre, Mill
Lane, Underriver, Sevenoaks, Kent TN15 0SQ – which is authorised and
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