Business Strategy Consulting

6 Key Points when Selling a Business

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In a recent article by RSM Bird Cameron six key pints were highlighted when considering exiting a business. The key learnings from the article are:

  • 76% of business owners surveyed have no plan to exit their business. This is significant when you consider the value that is generally tied up in a business.
  • It takes 3-5 years to prepare a business for sale. Doing this preparation later may cause a delay in exit plans.
  • 69% of business owners have never had a valuation of the business.
  • 55% of owners were not aware of capital gains tax implications in regards to the sale.
The six key points to consider before selling:
  • Prepare for the sale at least five years prior to selling.
  • Strengthen ties with key customers and draw up contracts where possible.
  • Train staff to run the business without the owner being present.
  • Speak to staff about selling the business.
  • Prepare documents for sale of business as early as possible.
  • Do not sell if the timing is wrong, be patient and be prepared to wait until the right buyer is found.
The full article can be accessed here.