Why You Need to Give your Business a Thorough Health Check…
We all know that it’s important to keep our minds and our bodies healthy, a fact that has become even more relevant over the last year. But our health, and particularly our mental health, can be disguised by the right wardrobe or the right attitude. In the same way, the underlying health of your business can be disguised by a well polished website and some good financials.
Traditional valuation methods would have you believe that the value and therefore saleability of your business is exclusively dictated by the financials. But what differentiates you from other businesses and what really adds value is that which is below the surface.
So, assuming you know that things below the surface of your business aren’t quite as healthy as the external appearance suggests, what can you do about it? Well, the most important thing to say is don’t despair… recognising that things aren’t quite right is the first step to making them better.
The second thing to suggest is to get some advice from an experienced and trustworthy source. Knowing that something isn’t right and identifying exactly what it is and how to fix it are very different things. I know that if I am overweight, I need to adjust my diet and exercise, but if I speak to a fitness coach and a dietician, I know they will suggest things I would otherwise not have thought of.
Thirdly, give yourself time. Change takes time but, particularly if you are thinking of selling your business, time may feel like a luxury you don’t have. But in most cases the time taken now to get it right will be more than worthwhile later down the line. Part of the service offered by Entrepreneurs Hub is working with business owners to help them prepare their business for sale, and then take them to market. The preparation phase can easily last for several months, but the investment into the business over time can have a dramatic impact on value and also on exit terms.
But what if you don’t know there is anything wrong under the surface? If everything seems to be running well and there are no outward signs, it is either because everything really is fine or there might be something there you just aren’t aware of.
You need to take a step back and look at your business with detached and dispassionate eyes… not very easy for most business owners I know. You may be fortunate enough to have a close and trusted friend who is in business and you can ask to help. You should ask them, or yourself, the question – if I were looking at buying this business, knowing what I know, is there anything that would worry me?
Of course, you can always ask an independent, experienced adviser like Entrepreneurs Hub to give your business a full health-check and report back. If you would like to talk to us in strict confidence and with no obligation, please do drop us a line.
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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…