Owning your own business can be a highly rewarding career move; but much of the time, whether you’re looking to step away from business entirely, or are looking for a new venture, there will come a time when you may consider selling. But how can you ensure this process goes smoothly?
From an accountant’s perspective, there are many considerations you should accommodate prior to making this significant career step. Below, we take a look through some of our top tips for preparing your business for sale…
Time your sale accordingly
Of course, the best time to sell your business, and ensure it’s an attractive prospect for potential buyers, is when it is performing effectively, with a strong forecast and a strong market behind it. Buyers will certainly do their due diligence when it comes to purchasing your business, so choosing the ideal time is essential to ensuring it not only sells but sells for a good price.
Keep your business running efficiently
Ensuring your profits continue to rise whilst navigating the selling process is crucial. Although many look to depress profits to save on corporation tax, this runs the risk of turning potential buyers away. They will want to see evidence of increasing profits in recent years.
Ensure all accounts are in order
Whilst a relatively obvious point to make, your accounts will form a key basis for any prospective buyer. These will show your compliance with HMRC, as well as how your business’ profitability has fared in the years since it was established. Your accountant will be able to provide support with getting your accounts in order prior to putting your business on the market.
Detail your contracts
Providing details of your key clients or long-term contracts will go a long way in showing the profitability and performance of your business.
Identify the ideal buyer
In the same respect as marketing your business’ product or services, selling your business itself will often require a similar approach. Of course, there are also experts out there who can help you navigate the selling process.
The best advice we can provide if you are considering selling your business is to consult with an accountant and business adviser. They will guide you through a variety of steps to prepare including the implications your sale will have on your tax liabilities. If you would like to speak to our expert team here at Ellis & Co. about a forthcoming sale, contact us today on 01244 343 504 or email email@example.com.