When do you think is the right time to start thinking about selling your business?
It’s like trying to sell a house that moves every day. It can be a horribly complicated process that we’re unlikely to even consider until we want to sell. I know I didn’t, and then I found something out.
We should be thinking about the sale, often called a disposal, right from the start. No really.
Even the initial set up can cause complications down the line. Some examples I’ve come across recently are; the company formation documents aren’t quite right (or there!), the accounts are on a homemade spreadsheet that only they understand and their cousin looks after this part of the business and they bung him £100 every so often.
Every process and transaction should be very clear, legal and easily understood by anyone who looks at it for the first time. A buyer’s uncertainty will reduce the price, or worse, put them off altogether.
But there is a double whammy here – you benefit now and when you sell. By working with this mindset you will have a much stronger business, so it will grow more quickly, be more resilient and guess what? Much easier to sell for a higher price.