How to choose the right team to sell your company

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Published: 26 Sep 2016

Like Claudio and Eddie, you need to choose and manage the right team of players.

Now you might ask “What has that got to do with selling a company?” In a word: EVERYTHING!

You see, you cannot kick all the goals and score all the tries yourself. You need the right team of players, coaches and trainers around you to achieve the winning result that the fans need.

More importantly, if, like Sundial Tax, you are part of that amorphous group known as the SME market, you cannot sell the company on your own AND run your own business at the same time, without risking a mental breakdown or the company running out of steam through lack of your direction. There are simply not enough hours in the day.

Furthermore, it is most likely that you will not obtain the best sale price for your company without help and assistance from within or outside the company. So what can you do? Well, there are two options.

  1. Either delegate the exercise to a senior member or members of your staff (if that is at all possible), or 
  2. Engage outside assistance in planning an exit strategy and finding a buyer. 

For the first option you may incentivise the staff member(s) to do it efficiently, but it relies on them having sufficient time to do two jobs which may be a risk in itself.

For the second option, you need to see who is available in the market to advise you and this is where the talents of Claudio Ranieri and Eddie Jones come in. After all, Claudio had a team that were not paid top dollar, but he managed to make them football league champions. Also, Eddie took over a failing England rugby side, but knew exactly what to do to have a 100% winning record in the 6 Nations and in Australia.

Similarly, you need to have the skills to pick and choose the right professionals to help you sell your company. “Who are they?” you may ask.

Your winning team

Firstly, you need an Exit Strategy Consultant to discuss with you your intentions to sell the company and clarify for you what needs to be done to make the company saleable and clinch the deal.

Secondly, you need a Company Valuer to realistically assess the proceeds that are likely to be received on sale and advice on the capital gains tax payable after taking into account the tax reliefs that can be claimed on sale.

Thirdly, you need a Company Lawyer to guide you through the legal matters relating to the company sale. Also, the Company Lawyer should be able to act on your behalf in reviewing terms and conditions with the sale agent.

If you have an existing accountant, lawyer, or independent financial adviser use them so far as is necessary and then make sure that they are working properly with the three specialists referred to above so that you receive a complete and seamless service to score the best sale price in the quickest possible time.

You must be thinking this is going to cost you a fortune in fees. It will not, provided you plan your exit well ahead, ask each professional to quote their fees in advance and, if necessary, obtain comparative quotes. In this way you remain in control of your destiny.

For advice on company valuations, sale of companies and share interests,(including minority interest disputes), shareholder protection or divorce settlements, call David Cane of Sundial Tax & Finance Ltd on 07749 080 806 or email David.