Selling a business to retire? What are your options?

We often meet business owners wanting to take a step back from their business and considering their retirement plans. Whilst the businesses and the sectors they operate in may vary, most share common goals - to realise maximum value whilst preserving their business legacy. This will usually lead to selling as a going concern (rather than closing the door and liquidating the assets).

The two most frequently used routes to exit from the business are a trade sale or a Management Buy Out (MBO). The best option for you depends on a number of factors. However, two important elements apply to both routes:

Timing – it is always advisable to discuss your plans with advisers as early as possible. The more time you have, then with the right advice, the better prepared your business will be. This will significantly increase then, with the right advice, your chances of a successful exit. Time to plan in advance of a sale is also often vital if you are to achieve a tax efficient exit.
Management Team – a strong management team is essential to allow you to maximise your value, whether you are looking at a trade sale or MBO.

If you are looking at a trade sale, then a strong management team de-risks the acquisition from the Buyers perspective - when you leave the business the buyer has confidence that the business can seamlessly continue to trade as it did pre-transaction.

For an MBO transaction, a strong management team is even more important, as these are the people the funders are backing to deliver a successful future.

Some of the key issues that will help decide on the best choice of exit route will include:

Is there an obvious trade buyer for the business?
How important is it to reward / look after key staff and employees?
Is maximising the price the driving factor?
How strong are the client base and cashflows? - how attractive is the business to funders?
How concerned are you about people knowing that the business is for sale?

The next step?

Selling your business is one of the most important decisions you will make - it is therefore crucial that you chose the right advisers to assist and support you throughout the process. As an award-winning corporate finance team, we are focussed on providing a high quality, personable service applying the knowledge we have built up from many years of advising owner managers on how best to achieve their exit. Why not drop us a line today to see how we can help make your ambitions a reality?