How to sell your business for the best price – In a nutshell – expert advice from Jerry Davison at The Mill Consultancy LtdClick here to view the transcript
Identifying potential buyers is of course a key part of your exit strategy. You need to think hard about why another company will see your company as a strategic fit with their business.
Most acquisitions are a short cut to grow the buyer’s own business. Sometimes they’re done simply to protect a key source of supply that might otherwise be acquired by one of their competitors.
Analyse and list those things in your business that have real strategic value. For example:
– your brand name and patents
– key technologies
– your customer database
– products or services that can fill a gap in someone else’s offering
– an excellent management team
Rather than just preparing some form of information memorandum and advertising on a business broker website like most people do, you need to spend time developing contacts that may lead you to the buyer who will make you a premium offer over and above what’s called the fair market value.
The reason that getting the best price may take some time is because part of your strategy is to develop a stronger presence in your industry through PR and attendance at conferences and so on. And don’t forget to think about foreign companies that might be interested in expanding in the UK.
An experienced corporate finance adviser can help you with the exit strategy planning, to ensure you get the maximum price for your business.