Selling your business for the best price – In a nutshell

Published on 9th October 2013

How to sell your business for the best price – In a nutshell – expert advice from Jerry Davison at The Mill Consultancy Ltd

Click here to view the transcript
Let’s start with the assumption that you look for a trade buyer, rather than some outside investor. A trade buyer will almost certainly pay a better price. They understand your market and crucially, the risks, really well. That gives them more confidence to do a good deal.

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.

Jerry Davison
The Mill Consultancy Ltd
01392 432 654


Add your comment

Your email address will not be published.