Improve the chances of selling your company
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Published: 9 Oct 2018
The hard work has been done
You have fully prepared your company for sale. This means that the operational, marketing and accounting systems have been thoroughly reviewed and should stand the scrutiny of a buyer.
You’re feeling optimistic as you have someone who is extremely interested in purchasing your company.
One is lonely number
From experience, I suggest that you should not rely on one enthusiastic buyer alone.
Let me give you an example.
A client asked me to prepare a valuation report on his small company. The valuation was £450,000. He was the main driver of the company and thought that it would bolt on to a larger company with a similar or complimentary business.
My client found the potential buyer through his business contacts. Negotiations were proceeding well until the proposal was presented to the main board of the buyer. It was turned down as other investment opportunities seemed more attractive.
The larger the number, the better your options
What did my client do wrong?
He did not cast his net wide enough and follow up the leads of other potential buyers to maintain the competitive edge. In short, he put all his eggs in one basket.
You may need to use a member of staff or sale broker to monitor competitive tenders and keep all potential buyers informed. This can give rise to additional sale costs but should be viewed as an insurance policy against losing the prospect of selling the company altogether.
If you’ve tried unsuccessfully to sell your business, please get in touch. You can call David Cane on 0330 122 8450 or 07749 080 806. Or email [email protected].
