So you Think your Business is Saleable? Think Again!
I have recently read a number of quotes stating that only 1 in 10 business owners successfully sell their company. Personally I believe it’s around 3 in 10 – which results in 70% of business owners not selling their business at the first attempt.
I have met owners who have been trying to sell their business for years. If you are wondering why they haven’t managed to sell then let me explain. Selling a business is similar to selling a car, although in most cases there is obviously more money involved with the sale of a business.
Years ago I purchased a lot of cars at auctions. I clearly remember many instances where I would arrive at an auction and enthusiastically find the lot number for my chosen target. Lots of people would be flocking around and examining it with a fine-tooth. It may have had a few marks but that’s expected. I would open up the boot and realise how very grubby it was inside. Some people would obviously be put off and would walk away.
Some of us would ask to see the service book and discover that the owner had never had the car serviced and that the V5 registration form was not available either. A few more people would lose interest and abandon the car whilst some would be thinking that they might be able to get a good bargain.
The driver would start the car and get ready to drive it into the auction hall. Upon listening to the engine – which didn’t sound good either, more people would lose interest. The few of us remaining would look inside at the dashboard and notice warning lights flashing everywhere – everyone would now walk away, resulting in not a single bid being placed on that car. At times the same car would go round week after week but no-one would buy it.
Similarly, when it comes to selling your business, it may appear to look good on the outside, and the numbers may be great. However, do you really know what the prospective buyers and their advisors will be looking for under the bonnet of your business? Furthermore, do you know what will actually put a buyer off from buying your company? Make sure your business is ready for the exit journey or you may find that interested parties completely lose interest and just walk away.
Please do get in touch if you have any questions or queries.
Wishing you every success.
Malcolm Murray
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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…