I’ve decided I want to sell my company – what now?

Sell my company!

If you’ve decided that you want to sell your company, then by far the best thing to do is to engage a business broker who can help you make sure everything is in place, get you the right price for it and ensure the process moves smoothly.

There are several distinct stages to selling your company which we go through on our page here, but here’s a little bit more detail so you can be sure you’re doing the right thing.

Fact finding

Any business broker will want to do some fact finding to ensure they know exactly what the company is about, whether it’s in a condition to sell and whether, indeed, the broker wants to get involved. This usually takes the form of a face-to-face meeting but sometimes it can be done by telephone conference.

Be prepared for a lot of questions and if possible have your accounts available. Most importantly, be clear as to why you want to sell your business. It’s not just the financial, regulatory or system-based reasons but your emotional reason can be just as important and can make the different between a smooth and difficult transition to new owners.

Feedback

After some time to consider, we’ll then give you our opinion on the value of the business and whether we have any other relevant information. We may give you some advice on what to do to make your business more saleable or valuable. It’s at this time you will make a decision – will you sell or not? We obviously don’t want to force you into a decision but we can help if you have any questions.

Formal Instructions from client

We will need to you sign our standard broker agreement which will give us the instructions to proceed on your behalf.

Information Memorandum

An Information Memorandum will be drafted for your approval. You can read about them here : https://www.venturabusinessbrokers.co.uk/information-memorandum-document/

Marketing

We now get to the business of marketing your business. We will have already developed a profile of the most likely type of buyer. We tailor the specifics depending on the client’s business and market accordingly. We may advertise in the press, approach potential trade buyers or even purchases registered with us. Either way, confidentiality is key and all potential purchasers are closely vetted and will need to sign confidentiality agreements before they get to see any of your information.

Meetings

We’ll get a list of potential purchases and then arrange for you to meet all the suitable ones.

Offers for your company

The purchases will make all offers via us and we will discuss these with you as they come in. We’ll also handle the negotiations although we will be led by your instructions at all times.

Agreements

After much negotiation a price will be agreed together with a structure of the sale. This is very important because some purchasers require that the current directors stay around for skills transfer or to help with the smooth transition of the business. It’s important that all involved understand their roles moving forward. When all agreements are in place, we will create draft “head of terms” to be signed buy both you and the purchaser.

Buyer due diligence

Buyers obviously don’t just wade in and purchase companies without finding out a little bit about them. The purchaser will probably now want to go into a little more detail about the company they’re buying so they understand more about it.

Instruction of legal advisors

When both parties are happy and have signed the head of terms, we can then go ahead and contact the legal advisers.

Progress

Throughout the entire process and certainly at this part of the sale, we will keep both parties updated with information about what’s going on. Regular contact will be kept at all times as the sale reaches completion.


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