Are you Exit-Ready? 5 Expert Tips for Preparing to Sell a Business
So, you’re thinking about selling your company. Perhaps the time has come for you to retire, or maybe you’ve spent many years feeling money rich yet time poor and you need advice for selling a business so you can move towards a more balanced lifestyle.
Like many things in life, selling a business for optimum value is about careful preparation. We’ve all heard that old saying, “If you fail to prepare, you prepare to fail”. As an experienced corporate finance company, we help hundreds of businesses get exit ready and achieve their best sale. Here are a few key pieces of advice for selling a business that we like to share along the way…
5 expert tips for preparing to sell a business
- Start by asking yourself some personal questions
Really focus on your business sale objectives in more detail. What’s important to you? What are your exit options? How ready do you think you and the business are to sell up?
- Set a date to fully review your business
Why not do this offsite for a clearer perspective? Review what you’re selling and honestly examine advantages and issues with financials, staff and business structure, IP, compliance and contracts. Consider who might buy your business and what they’ll be looking for.
- Document a detailed exit plan
Exiting your business is the pinnacle of a journey – sometimes a lifetime long – so continue that investment right up until the moment you sell. Use the information gathered during your review process to formulate a clear ‘road map’ and timeline. Don’t forget to create a due diligence checklist.
- Take action
If you’re serious about selling your business properly, you need to hold yourself and your partners accountable for delivering on your exit plan. Start with quick wins to get the momentum going and assign deadlines to actions at every stage. Review progress at monthly update meetings to ensure you stay on track.
- Meet with industry specialists
Chances are you haven’t sold a business before, so make use of the wisdom and experience available to you from consultants who have more than just the benefit of hindsight. Seek counsel on complex areas such as tax and legal, compliance and regulation, contracts and litigations, intellectual property – and always remember to get independent advice on how to secure the wealth you’ve worked so hard to achieve for the future.
When business owners initially come to us seeking advice for selling a business, a phrase we hear so often is, “Why didn’t I get help sooner?”. If you develop and implement careful preparation from the outset, you’ll ultimately be rewarded with a sale that reflects the true worth of your business and all the time, money and energy you’ve invested in it.
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FAQs – Selling your company
How do I sell my business?
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
How much can I sell my business for?
Determining your business’s value is more than just calculating a number it’s complex with key factors, that said the basic equation is actually quite simple. Read more…
How long does it take to sell my business?
The timeline varies depending on the complexity of the deal and how ready the business is for sale. On average, the process takes around twelve months – sometimes less, sometimes more.
While preparing your business for sale, Entrepreneurs Hub conducts in-depth research to identify potential acquirers. You’ll have the opportunity to review and approve this list before we make any approaches. Once the business is fully prepared – often the most time-consuming step, we begin marketing it. Typically, you’ll start seeing initial interest within a few months, with follow-up meetings happening shortly after.
As these meetings progress – coordinated and facilitated by Entrepreneurs Hub, you’ll begin receiving initial offers. At this stage, we’ll help you assess the strategic fit between your business and potential buyers. When you decide to move forward with an offer, an exclusivity period begins, during which the acquirer conducts Due Diligence (DD).
The DD phase typically lasts two to three months, depending on the complexity of your business. Once complete, the sale is finalised, and you’ve successfully sold your company.
How do I sell my business quickly?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
When is the best time to sell?
Selling your business is a major milestone, and the start of an exciting new chapter, whether that means new ventures or a well-earned retirement.
In our experience, the best time to sell is when you don’t need to – when your business is performing well – not necessarily tied to the calendar. That said, timing can still play a role.
Timing the Market
Strong economic conditions, sector growth, and buyer confidence boost valuations. Don’t wait for a “perfect” market – a well-prepared, well-performing business sells in any climate.
Plan Ahead (12–18 Months)
The best outcomes come from early planning: clean financials, solid forecasting and growth potential.
Spring & Autumn Are Active Periods
The M&A market is typically busier in spring and autumn while summer and winter tend to be slower due to holidays and year-end distractions. However, the unpredictability of deals and negotiations makes this hard to target. We do deals all throughout the year – the key is to work with someone who can keep driving the deal forward whenever it happens.
Financial Year- End
Selling your business well is a long process and aiming for your financial year-end milestone is a virtually impossible task. But it is worth bearing your financial year in mind as buyers will want to review the most up-to-date accounts available.
The best time to sell is when your business is ready, and you are too. With the right preparation and positioning the right timing follows naturally.
Can I sell my business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…