Preparing your company for sale
Sooner or later, every entrepreneur has to face the same consideration – selling their company. Of course, you want to secure the best possible deal, which calls for thorough preparation and ensuring that a concrete plan is in place. This plan will need to address several essential topics like the business plan, potential investments and succession, as well as what you would like your role to be after selling. Our advice to you is to carefully consider your personal and commercial motivation for selling. Once you have prepared all aspect then you are ready to start the sale process.
Ready for sale in fixed steps
There are a range of different reasons why you would want to sell your company: your company’s growth causes you to spend more time managing the day-to-day operations rather than developing new strategies; it is more beneficial for the continuity of your company to join a larger party in your industry; or you are simply looking for a successor because you want to enjoy retirement. Whatever your situation might be, preparing your company ready for sale is an intensive process in which the course you are on as an entrepreneur will change. This change of direction deserves the proper level of focus and attention. Do you ever think about:
- what you want to achieve with the sale of your company?
- what the right choices are for the future of your company and employees?
- how cancan prepare for sale, both personally and commercially?
- how cancan create the maximum enterprise value?
- who your sparring partners are?
Taking the time to carefully prepare your company for sale will give you more control over the sale result, which can increase your enterprise value by 10 to 30%. Preparation starts with:
- outlining future scenarios, both commercial and personal;
- ensuring that financial management accounts are up to date;
- mapping the future-proofness of the company;
- ensuring you have a strong management team in place, committed to the company;
- an indicative valuation assessment, including points for improvement, and;
- drawing up a plan of action to maximise the enterprise value
How ready are you for the sale of your company?
Some entrepreneurs want to sell as quickly as possible, whilst others want to go through one more growth phase before selling. Whatever your personal considerations might be, it is always good to know where you currently stand and in what direction you want to steer the business . The ready-for-sale test provides you with insights into how prepared you and your company are to sell; the test is quick, simple and free of charge. It should hopefully also provoke some thought around how realistic your plans are, which steps you still need to take and how best to approach the process. Taking the test is without any obligation but, of course Marktlink’s M&A specialists are there for you when you need professional advice.
From preparation to selling
During the process of preparing for sale, you have to be able to considerall possible risks. Are your books and financial accounts in order, and does this give you insight into the figures concerning sales and costs? What are your company’s growth opportunities and what are the forecasts? Can you budget two to three years ahead and anticipate market trends for the coming years? It is crucial to place the management team at the forefront to reduce your own operational role in the company allowing you to work on, rather than in, your company.
Calculate your enterprise value with the Marktlink Multiple
Companies with a strong EBITDA and team can attract plenty of attention and interest from potential buyers. When preparing to sell your company, it is always worthreviewing a number of factors to increase your enterprise value. For example, lowering your dependency on one specific customer or supplier is beneficial to the company. Generating a predictable future cash flow or a recurring revenue stream is also attractive, for example, by receiving income through subscription models or contracts. Scalability and flexibility also contribute to the valuation of your company.
Are you curious about the value of your company? Fill in the Marktlink Multiple and receive a reliable indication within one minute. The Marktlink Multiple is based on more than 40,000 calculations per year. In addition, we offer you a personalised report containing tips and advice on your individual situation. Of course, you are welcome to contact one of our advisers – they are always happy to discuss your options to maximise the value of your company.
We help you prepare your company for sale
Marktlink is the right place for you, even if your company is not currently entirely ready for sale. Every year, we offer a ‘10 steps toward a successful deal’ Masterclass throughout the country, in which we take entrepreneurs through all the steps of preparing for a sale, as well as the eventual sale of a company itself. This is a unique opportunity for you as an entrepreneur to gain invaluable insight around your M&A options and exchange experiences with other entrepreneurs. Participation is free of obligation and we provide a setting in which you can discuss topics confidentially. Are you interested in joining the Masterclass or do you want to exchange ideas with one of our advisers? If so, leave your contact information and we will call you back within two working days.
