Two very different questions, but with one solution. Use a company who deals with exit and acquisition.
If you’re thinking of exiting a business, it’s a given that you need an exit strategy – no one finds it easy walking away from something they’ve built. You can use this to maximize your profit when selling, or to reduce and liquidate your stake in the business.
You can sell your business to its employees and managers – a good idea if you have a thriving team that have invested their time into the growth of the business, also a way to keep a stake for yourself if you want to do that.
In most cases though, you’re either thinking of selling to an open market or to another business. This is a long and complicated path that’s going to take up a lot of your time – getting your valuation, structuring deals and more. Instead of dealing with the running of your business you now also must consider getting on the market, dealing with offers and negotiating the right price for your business. Like selling a house, this isn’t a cut and dry process, using a corporate financier is your best bet at getting the best deal you can without it taking up all your time.
Now, if you’re thinking of purchasing a business you may be under the impression this is much easier than starting from scratch. In a way, yes, your business will be over it’s first hurdle or two, but you do need to put some real effort into finding the right business for you. This means researching business plans, checking on previous and existing business relationships as well as how you are going to finance the various costs associated with the acquisition – things like professional fees regarding the transaction and any extra investment needed if it needs to be brought up to scratch.
There are many advantages and disadvantages to acquiring an existing business, and the process in order to gain it doesn’t need to be your area of expertise as the last thing you want is to add more to your to do list. Using a company to guide you and assist in the purchase of a business takes the weight off your shoulders. Having someone who is able to ask the right questions and is on the look out for things you might miss because they also assist in exiting businesses gives you the upper hand. Speak to knowledgeable professionals. If you need help with exiting or acquiring a business, speak to ABL Business Ltd on 01274 965 356. We can put you in touch with the right people and assist with the need to finance your acquisitions.