OK so you want to retire and you are looking to cash in?
So I’ll take a look at your historic trading results, and see what sort of figure these will support. I want to take you through the valuation process so you can see, if you’ve got a bit more time, how the value can get better.
It’s going to help if I ‘role play’ the purchaser, to pick up any factors that may reduce the valuation.
Let me give an example – maybe the business has become part of your lifestyle. We will need to take out any assets and the associated costs that the business does not really need. OK this may involve you paying a bit more tax, but if I can show potential purchasers that your business is making enough to pay all this tax, then they are likely to pay more for it.
I also need to understand how much the business depends on you, as no one is going to pay a decent price for a business if there is no one to manage it.
When the business is ready for sale, then I use my database and network contacts to find a suitable buyer. Advertising is very much a last resort. Its much better to target the ideal buyer on an exclusive basis, as I can’t allow your business to be weakened by rumours that it is for sale.