Contact Us

Preparing Your Company For Sale

Time to Polish the Assets

Good preparation is an important part of getting full value for your business.  Buyers will pay the best price for a growing, profitable business with an enthusiastic management team, but problems in these areas take too long to address if you want to sell now.

So what if you want to sell in the near future?  Here are a few actions that should not take long to complete:

Polish the Physical Assets:  Poor first impressions are expensive. A tatty reception, untidy factory or disorganised storage area send a negative message. Tidying up and applying a few licks of paint can be worth tens of thousands. Get rid of unused plant and clear out any areas where you dump old equipment or paperwork.

Get Rid of Complications:  Remove any personal assets from the company and tidy up shareholder loans.  Get relatives who are receiving a salary for little work off the books.  Remove from the company any property or development land you want to keep.  These issues will complicate contracts and negotiations, and worse they will be used as levers to chip away at value.

Get the books in good shape:  Remove long gone fixed assets, obsolete stock and uncollectable trade debtors from the books.  These problems will be found in due diligence and damage the credibility of your accounts.

The sad fact is that many businesses sell for less than they are worth because of easily addressed problems – like the clutter and maintenance issues that you fix when selling your house.  It is never to soon to start fixing these problems if you intend to sell in the near future.

 

If you are interested in finding out more about these and other issues relating to the sale of a private company one of our business sale experts would be delighted to talk to you in complete confidentiality. Click CONTACT ME to book an initial phone conversation or call us on 01604 432964.

 
We welcome comments on posts, and questions from our readers. Use the “Leave a Reply” box below. We answer all reader questions within 24hrs. If you would like to be informed about new posts on the theme of selling a private company click the “Subscribe” button at the right hand side of this page.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

* Copy This Password *

* Type Or Paste Password Here *

21,897 Spam Comments Blocked so far by Spam Free Wordpress

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

back up ↑
UA-35460329-1