Why worry about timing when there are two reasonable approaches to selling your business: When it is a certain size or when it’s worth a certain amount of money.
Both are perfectly reasonable, but they ignore one crucial factor: Timing.
Say, today you think your business is worth £1,200,000. After tax and the selling costs you would expect to clear £1,000,000. Let’s say for arguments sake, you can make a 3% gross return on this money i.e. £30,000 per annum.
Let’s also assume your pension fund(s) are worth £1,000,000 too. So that gives you another £30,000 gross per annum.
That’s £60,000 gross in total. Ask yourself this question: Can I live off this amount?
If you can, then why wait to sell your business when you already have enough to live on?
Why roll the dice and risk what you have already. Just think about those business owners who believed they could grow their business before the 2008 recession. Some of those businesses may have lost money and are still waiting for the loss in value to return to the pre-recession levels.
That’s six years’ ago and if you are in your late fifties/early sixties how much longer can/will you be able to go on?
So what should you do?
Well, if you have not seriously considered selling your business or you have toyed with the idea, then I genuinely feel you should carry-out a self-assessment to see where the value lies and where the strategic importance of it is to a buyer.
How can I help?
Well, I have been involved in the sale of several small businesses helping the owners move onto the next stage in their life. By my coherent and transparent approach I can help you maximise the value of your business so you get to keep more money in your back pocket.
I can either
- undertake a self-assessment of your business with you to see where the strengths and weaknesses are so we can determine if a sale at the value you want is viable; or
- see if there is an interest out there which may be exploited to your advantage.
So, if you are concerned then please contact me, Andrew Watkin on 07860 898452, or by email: email@example.com
Assynt Corporate Finance Limited, Chartered Accountants, is a member of The Corporate Finance Network which means we can access additional Corporate Finance resources, particularly in the areas of advertising businesses for sale discreetly and accessing those lists for our clients who want to acquire business.
The information contained in this briefing is based on information available as at the date posted and may be subject to amendment. It is written as a general guide and is not a substitute for professional advice. You are strongly recommended to obtain specific professional advice from us before you take any action. No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this briefing can be accepted by Assynt Corporate Finance Limited or its employees.
Need Help? Contact Andrew at Assynt:
If you are serious about selling your business, contact Andrew to arrange an informal chat, in person or over the telephone to assess the options open to you.
You can also contact Andrew by email at: firstname.lastname@example.org or by completing the form on this page.