Considering a Business Sale? Get the Right Advice

6th August 2020

When contemplating your market exit strategy, there will undoubtably be a variety of questions looming in your mind. When is the right time to sell? Do I need to adjust my operations to make my business more saleable? What paperwork should I prepare for interested parties to view? Often, there isn’t a catch-all answer for every business, with each sale presenting a unique set of circumstances and challenges.

The most common question asked by prospective sellers is regarding the asking price for their business. There are numerous methods posted across various business-for-sale websites to estimate your business’ market value, however each one possesses flaws that can only be amended by the expert opinion of an industry professional.

Value of Business:

The asset approach of totalling the depreciation-adjusted value of business assets to attain the business’ value is highly reductionist, not taking into consideration earning potential. Meanwhile the income approach falls on the opposite end of the spectrum, solely focusing on a business’ earning potential whilst ignoring external market factors. Consequently, the market approach of estimating a business’ value based on the sale price of similar businesses in the industry ignores the individual traits and characteristics that a business may possess. To discover an accurate market value for your business, you need to consult an expert.

Right Time to Sell:

When deciding at what point to place your business on the market, there are several factors you need to consider. What is the average time for a sale to complete in your industry? For many industries, this period can be upwards of 12 months for a completion. What are your plans once your business has sold? If you are seeking retirement, by what time are you looking to be entirely divorced from the business, so you can enjoy your freedom? Depending on the nature of your business, it may be advantageous to offer a transition period where you retain a position in the business or act as an external consultant whilst an incoming owner gets to grips running your business.

Sale Process:

For many business owners, a business sale will be their first and only experience with the sales process. Whilst simultaneously running their business, the extensive level of research and analysis required to not only sell your business, but to achieve its full market value is a simply unfeasible feat. Therefore, it is strongly advised to seek the assistance of an experience business broker to facilitate the sale.

Expert Advice:

If you require expert advice regarding your exit strategy or need an industry professional to realise your existing market exit strategy, we implore that you do not hesitate in getting in contact with a member of the Bruce & Co team. With over 30 years of experience successfully selling businesses, we have a proven track record in obtaining generous returns for our clients.

Why Choose Bruce & Co ... ? Our recent success

The charming Golf Links Hotel in Golspie, Highland has been sold by Bruce & Co to First-Time Buyer

Run by the vendors for over 15 years, The Golf Links Hotel

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Drumlithie Hotel, a busy tavern in Stonehaven, Aberdeenshire has been sold by Bruce & Co.

Operated by the vendors since 2004 and open 7 days a week,

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