Know When you’ve Won (and it’s Time to Sell a Business)
Professional success can be addictive. While that ‘addiction’ has probably been a pivotal factor in you becoming the accomplished entrepreneur you are today – with the prosperous company to prove it – it can mean you become blinkered to the bigger picture and you might miss the signs that it’s time to sell a business.
The ‘bigger picture’ looks different for everyone. For those early on in their career, it might mean moving onwards and upwards towards a more challenging business opportunity elsewhere. Maybe you’ve taken this particular venture as far as you set out to. The more experienced business owners amongst you might be thinking about cashing in a lifetime of hard work so you can retire and spend more time with family. Others might feel money rich but time poor, just craving more time for themselves with less of the daily demands that can go hand in hand with running a thriving enterprise.
Winner takes all
Entrepreneur’s Hub Director, Malcolm Murray, recalls a conversation he had business owner a few years ago who was coming to the realisation that it was the right time to sell his business.
“He said there were two signals that highlighted to him that it was time to sell – the first being he couldn’t switch off from his business, even when he was on holiday. Time off is a key part of sustained productivity, not to mention good health. But he said what really showed it to him was something his wife said – you need to know when you’ve won.”
What she meant by that is that he had accumulated significant financial assets for his family, the business was going well… yet it he could keep chasing the next thing, and the next, and the next if he let his addiction to achieving more and more take over. Now was the time for him to step back, acknowledge the fruits of his labour and do other things with his life.
Your raison d’être = their reason for buying
A consistently strong turnover, flourishing profits and a productive workforce with desirable skills are all feathers in the cap of the ardent entrepreneur. As a business owner, you want to leave your workplace at the end of each day with the satisfaction that your business exemplifies all these features.
Throughout the many years we’ve supported business owners throughout the process of selling their company, more than a few have told us that their business success has also become part of the fabric of their identity. It’s not just a valuable asset and what you DO, sometimes it feels as if it’s who you ARE.
It’s understandable how difficult it might feel to walk away from that.
Quit while you’re ahead
Don’t be blinded by your own success. As we explained in our blog 5 Signs it’s the Right Time to Sell Your Business the same aspects that fuel you to keep going with your business are what potential buyers are looking for. Your reasons for getting out of bed each day are highly desirable selling points to them.
Being able to market your business for sale and advertise positive aspects such as keen customers, healthy figures and happy, talented staff will create a very attractive buyer proposition and allow you to command a higher price.
Become so dazed with the headiness of your career triumphs and you risk hanging on to your business too long, by which point those assets might have lost some of their worth.
How do you know you’ve ‘won’?
It can be tricky to get perspective on your own situation, so here are some questions you can ask yourself to assess where you might be in terms of your appeal to potential acquirers, right now…
- Does turnover demonstrate steady year on year growth? An upward line on the graph is a green flag to any buyer
- What does your workforce look like? A blend of seasoned experts and new talent with fresh ideas proves strong staff retention and attractiveness to the best young candidates in the field
- Are you setting trends? A new product, in-demand service and/or a renowned brand with a resonant message will be recognized by acquirers at forefront of your industry – those prepared to pay a premium for such a strategic investment
- Is there a gap in the overseas market for your offering? Even if you feel like a small fish in a big pond here in the UK, you could become the market leader in another country where the industry is less established, so consider your global appeal
- How exit ready are you? If your business is as organised as it’s successful, savvy acquirers will be hooked by the prospect of compliant and orderly documents such as contracts and leases. A lack of preparedness will give the impression of chaos behind the scenes – which is rather less appealing and could even devalue your business
Have you reached the finish line? Is it time to sell up? Entrepreneurs Hub is an experienced corporate finance company who can help you discover if it’s the right time for you to sell a business. If so, we can support you as you get exit-fit and help you sell for maximum value.
Contact us for confidential advice on 0845 067 8678 or email info@entrepreneurshub.co.uk
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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…