The recent announcement that the economy is expected to bounce back this year to its pre-Covid level is good news. It will naturally lead many to wonder if they can re-visit their plans to sell their business and move into the next phase of their life – whatever that might be. However, at Entrepreneurs Hub, we would counter that with the question: has it ever been a bad time to sell?
The Entrepreneurs Hub team has spent the last 30 years and more working in senior positions for a wide variety of companies, including major corporations and multiple corporate finance advisory firms. Between us we have completed many hundreds of transactions across pretty much every sector you care to mention. And we have seen all sorts of market conditions, from the apparently good to the apparently bad!
I tell you this not to brag, but to let you know that the collective wisdom I am about to share with you comes from a place of first-hand, real-life experience.
In our experience proper planning is more important than ever, and most entrepreneurs only start planning for a sale of their businesses 1-2 years from the anticipated sale. All things considered, you should really start your planning 2-5 years ahead of the anticipated sale.
Impartial advice can be the difference between success and failure. The past 20 years has been riddled with ups and downs which entrepreneurs have had to navigate, which have been kind to some and disastrous to others. It is those who have sought impartial advice to help them separate the hype (good or bad) from the reality who have been most successful at growing, preparing, and selling.
The economy is not a reliable barometer for M&A activity. The rebound in M&A activity since the beginning of Q3 July 2020 has been far stronger than many would have thought possible given the economic situation. The ingredients for a strong deal-making landscape have been plentiful: low interest rates, abundant cash and loans, vaccine roll out and recovery anticipated, Sterling currency weakness and boardrooms seeking diversity to name a few.
Let’s not beat around the bush – greater risk means more caution and you need to be adequately prepared. Commercial, financial, and legal preparation has never been more important! Advisory teams will generally fall into two categories… those who carefully consider these matters with you, and those who simply race you through a process – presumably with blinkers on and fingers firmly crossed. Acquirers broadly assess two things, opportunity and risk, and the balance between them determines value, terms, and everything else. There is no better way to assess this than through reviewing high-quality and detailed data about the business they are about to acquire.
If you want to explore this further, then you might be interested in reading our full report… request your copy here:
You might also find this 2-minute video intro to the report of interest
We are happy to offer you a free and confidential one-to-one telephone or online meeting to discuss your current situation and plans https://www.entrepreneurshub.co.uk/contact-us/