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Many business owners are likely to only sell their enterprise once!<\/p>\n
The risk here is they only really learn what buyers truly care about too late, namely once the transaction has happened.\u00a0<\/p>\n
Some owner managers to go market expecting a life-changing valuation, only to then find potential buyers questioning:<\/p>\n
This can all lead to a dangerous end result… The business sells for less than expected, or worse still, doesn’t sell at all!<\/p>\n
The good news however, is we’ve a vast amount of experience advising clients through disposals and exactly how to sell a business<\/a><\/span><\/span>. We’ve identified several key factors that drive up the value, these are things you should develop and improve several years before any sale process commences.\u00a0<\/p>\n Here are 12 of the biggest areas buyers look at when deciding what your business is really worth. Some quick links to sections covered in this blog post about:<\/span>\u00a0<\/p>\n <\/p>\n Before we look at the key 12 areas, it’s useful to know and learn why things can go wrong. Over the years we’ve found that many business owners presume that if their enterprise is profitable then it will automatically attract buyers. Unfortunately that’s not entirely true and not always the case.\u00a0<\/p>\n There’s many reasons why deals can stall and some of these include:<\/p>\n The good news is many of these issues can be taken care of years before a sale is due to take place.\u00a0<\/p>\n <\/p>\n If your business can’t function without you, buyer’s won’t see an asset, instead they’ll likely see a very clear risk!<\/p>\n A prime objective should be to build a business that can work without you<\/span> being there! It may sound and feel counter intuitive but this is a key driver to a sale<\/a><\/span>! If you’re integral to the success of the business on a day-to-day operational basis then a potential buyer will see that as too risky to purchase.<\/p>\n Owner-managers need to design themselves out of the business<\/span> as much as possible early on. Create a management team that can run itself without you there, that’s an attractive proposition!\u00a0Go on holiday and\u00a0see how everyone deals with things in your absence. Will your business be as healthy as when you left it?<\/p>\n Don’t be the business superhero, it likely won’t sell! Instead a sign of your success is how many talented people you can recruit\u00a0and retain.<\/p>\nWhy businesses fail to sell<\/h2>\n
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1. Hub & spoke<\/h2>\n