Selling Your Business - Exit Strategy
When should you prepare your Business for Sale?
You have worked hard to build your business so you will want to be sure of achieving the best realistic price come the eventual exit. Through our experience on the Acquisition side we know that only too often business owners are let down by the lack of thorough preparation of their business. This is why we launched 2 Products which we recommend are carried out at least 3 years prior to exit.
vfdnet provides 2 highly effective Products:
1. One day Strategic Review – a thorough review of your business fundamentals giving you valuable feedback and action plans to build your business value over the next 3 – 5 years. Contact me for more details. Key Benefits are:
- Confirms strengths
- Identifies areas for improvement
- Indication of current Valuation
2. Strategic Workshop – Bringing together all the key Shareholders this workshop brainstorms the future plans of the business, in the context of historical achievement, and provides an indication of the projected Valuation at Exit. This workshop provides:
- Indicative Value per Shareholder
- Identify key constraints
- A good feel for the key drivers of Business Value
Often these two Products are followed by providing an ongoing Virtual Finance Director service, helping the owner manager to turn the weaknesses into workable action plans.
vfdnet FDs have strong experience of doing deals having been involved in over 20 transactions involving SME businesses. see our transaction record. Contact us for a no obligation, no fee introductory meeting.
Case Study: The Sale of Silver Direct - £ Undisclosed
Silver Direct is a successful quality mail order and web based business which offers ‘Bond Street Silver at affordable prices’. The business has a turnover of £350k and boasts a loyal customer base with significant repeat buying and exceptionally low returns. The MD and Owner approached us to help him prepare his business for sale.
We worked with the owner and agreed a sale strategy which aimed to:
• identify the key business strengths
• scale opportunities (petrol in the tank for the next owner)
• find suitable buyers
• achieve a realistic valuation
• ensure the buyers focused on the future business plan as well as the current trading
We were able to advise the Owner on the initial information pack, how to find a suitable buyer, and how to approach the negotiations. Despite a wide difference in early valuation expectations, a satisfactory and fair consideration was agreed between the parties leading to a successful completion of the deal.
“…This gives me a great opportunity to express my very sincere gratitude to you for all the guidance and help you have given me over the last months. Your professionalism and expertise has surpassed all my expectations; the moral support when times have been tough has been so reassuring. Your skill, tact and professionalism did not go un-noticed by myself or the purchasers. Without you the sale would not have been achieved. I very much look forward to continuing our very enjoyable working relationship with other projects. I am truly grateful to you.”
Peregrine Pole-Carew – MD of Silver Direct
Note: You can also download a factsheet on selling a business in html or pdf format.
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