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 in the UK?
Selling a business in the UK typically involves preparing financial information, obtaining a valuation, identifying suitable buyers and negotiating the terms of a sale. Most owners work with an M&A adviser to manage the process confidentially, approach qualified buyers and maximise the value achieved.
At Entrepreneurs Hub, we talk about five key areas that make the difference between success and failure when selling your business. Read more…
What is my business worth?
A business is typically valued using a multiple of its profit, usually EBITDA or adjusted net profit. The multiple depends on factors such as growth potential, recurring revenue, customer diversification and management strength. Professional valuation provides a realistic price range and helps position the business effectively for buyers.
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 a business?
Selling a business in the UK typically takes between six and nine months from preparation to completion. The timeline depends on business readiness, buyer demand and the complexity of due diligence. Early preparation and clear financial reporting can help shorten the process.
When is the best time to sell a business?
The best time to sell a business is when it is performing strongly, growth prospects are clear and you are not under pressure to sell.
Business owners often achieve the strongest outcomes when:
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Profits and revenue are growing
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Financial records are clear and well prepared
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There is visible future growth for buyers
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The owner has planned the sale 12–18 months in advance
Market conditions can also influence valuations. Strong buyer demand, sector growth and favourable economic conditions can increase acquisition activity, but a well-prepared business can attract interest in most markets.
Deal activity often increases during spring and autumn, although transactions complete throughout the year. In practice, preparation and business performance usually matter more than trying to perfectly time the market.
Ultimately, the best time to sell is when both the business and the owner are ready, with the company positioned to demonstrate strong value to potential buyers.
Do I need an adviser to sell my business?
Many business owners choose to work with an M&A adviser to manage the sale process. Advisers help value the business, approach qualified buyers confidentially and negotiate terms. This structured approach can increase the likelihood of achieving a higher value and a successful transaction.
How is confidentiality protected during a sale?
Confidentiality is protected through controlled information sharing, anonymous buyer approaches and strict non-disclosure agreements. Potential buyers receive limited information initially and must sign an NDA before any sensitive details are released. Business owners approve prospective buyers and maintain visibility over all documentation throughout the process.
How do I value my business before selling?
Valuing a business before selling usually involves analysing profitability, identifying valuation multiples and assessing key value drivers such as recurring revenue and customer concentration.
What’s the quickest way to sell a company?
Selling a business quickly is possible, but speed shouldn’t come at the expense of value or deal security Read more…
What’s the best way to sell a business online?
Yes, you absolutely can sell a business online. Many platforms specialise in connecting business sellers with buyers. Read more…