Taking the decision to work with a business sale adviser is a positive step. Their skill and experience can be invaluable in achieving the best possible outcome for you and your business. But working with an adviser requires commitment from both parties and the better the working relationship, the more likely you are to maximise the benefits. Here at Firm Gains, we have highlighted the key ways you can achieve this.
You are engaging the help of an adviser because selling a business is a complex process and one which you have not undertaken previously. Some of the processes may seem at odds with other types of sale you have undertaken but the process business sale companies undertake will have been tried and tested on many businesses before yours to ensure that it is effective at achieving your aims.
Trust your adviser to know how to position your company with potential buyers and to manage their enquiries, the subsequent negotiations and completion of the business sale process.
Whilst your views and thoughts are obviously important (it is your company after all) always bear in mind that your adviser will know how and when to present these, if at all.
The more information about your business that you can impart the better. Your advisers’ aim is to position your business in the best possible light to prospective buyers. To do this they will need:
- All the financial information you can supply. It must be up to date and without any missing elements. Don’t worry about all this information being sent to potential buyers, your advisor will know exactly how much to divulge and when to do so. Additionally, the information will only be communicated to potential buyers who have signed an NDA
- All the operational information required to create the most important document in the process (apart from the Sale and Purchase Agreement) – the Information Memorandum
- Your time – whilst your advisor will manage the sale process on your behalf it is very much a joint venture. Maintain communication with your advisor and be sure to respond to their emails and telephone calls promptly
- Negative aspects of your business – make sure your advisor is aware of these and decide together how to present these in a positive light. Discovering negative aspects while talking directly to a buyer can put you and your advisor on ‘the back foot’
- Business changes – during the sale process, which can take many months, keep your advisor aware of any changes in your business that could affect its value. Such changes include the gaining/loss of key customers, new products or service launches, changes in your marketplace, changes in key personnel, etc.
Your adviser is your key partner throughout this process, so lean on them, use their experience, empower them to deliver the best long-term result for you.
Firm Gains view:
“An adviser can have a hugely positive impact on the sale price of your business and terms of the sale. Their experience and skill can be invaluable but they will need your help throughout the process. Selling a business this way is very much a joint effort.
“Advisers skill will also come at a cost, either with an upfront fee, a percentage of the sale fee or both. So, make the most of them!”