Selling a business quickly is possible. It usually costs you something, and it is worth knowing what before you start.
Most owners who need a fast sale are dealing with something that will not wait: a health problem, a partner leaving, a funding gap, or a market turning against them. The buyers who move fastest tend to be the ones who already know your sector, and they price speed into what they offer.
What follows is what genuinely shortens a sale, what makes no difference at all, and where the trade off between time and price actually sits.
Get an accurate valuation
One of the best ways to get potential acquirers interested in your business is to advertise it at a fair price that reflects its genuine market value.
To accomplish this, you’ll first need to conduct a business valuation. This can be done yourself – there are several different methods you can use – or you can hire the expertise of a business broker to carry out the valuation for you.
Whichever route you choose, it’s important to have an accurate valuation before you start selling, so you can set an optimal price that works well for both you and your potential acquirer.
Organisation is key
Another top tip to help you speed up the sale of your business is to have all your paperwork organised in readiness. Would-be investors are going to want a clear view of the financial health of your business, not to mention the various other vital aspects of its operations – from contracts to licensing.
Having all this documentation well-ordered and ready to hand will help to expedite the sale as it will make the due diligence stage proceed at a more efficient pace.
Prepare for a smooth exit
A common problem that can delay a business sale is failing to make adequate preparations for exiting. Of course, this is much easier said than done if you are facing a sudden debilitating illness or a significant financial loss.
However, it’s important to do what you can to lay the groundwork for your exit as this will be helpful to would-be buyers and will give them a clear picture of how the business is set to change ownership.
Decide how much you are going to sell
When it comes to how to sell a business, a vital question arises – just how much of your business do you really want to sell? Do you want to pass it on entirely (a shares sale), or do you want to just sell the assets?
There are significant differences between an asset sale and a shares sale, so it’s incredibly important that you decide early on which route you are going to take. There are pros and cons of each choice, so it all depends on what you want to achieve, going forward. Do you want to entirely offload your business, and receive the payment for its sale into your personal account? Or do you want to simply sell the assets but keep your share in the business?
Your would-be acquirers will be keen to ascertain what kind of sale you’re looking for from the start, so you need to think very carefully about which type of sale is best for you and your business.
Hire a business broker
Selling your business can be a hassle, requiring significant amounts of focus, time and energy. To save you a lot of work – and stress! – why not hire a business broker who manage the whole process for you.
Not only will this leave you free to focus on overseeing the daily operations of your company and carefully preparing for your exit, taking on a business broker can also bring other substantial benefits.
For instance, they can help to streamline the process of finding and verifying potential acquirers, as they will have plenty of contacts available. They can also prepare high-quality marketing materials to promote your business more effectively.
Finally, business brokers will handle every stage of the M&A process – from initial contact to deal completion. Using their expertise, they can help to speed up your sale and secure a deal that benefits everyone involved.
Brush up on your negotiation skills
One of the stages of the M&A process is the negotiation phase, where you and your prospective acquirer will take part in vital discussions and back-and-forth about the terms of the sale. This is where your skills as a negotiator will come into play.
If you’re not entirely confident in this sphere, there are a few simple strategies you can employ to help you navigate your way to a successful deal.
These include:
- Setting your objectives for the negotiation
- Having confidence in your own abilities to speak up for what you want out of the sale
- Keeping a cool head if your emotions threaten to get the better of you
- Engaging in active listening
- Slowing things down if you need time to compose yourself or to consider a particular aspect of the terms you are discussing
With the aid of these tips and tricks, you will hopefully be able to confidently negotiate favourable terms that prepare the way for a successful sale.
How Harris Acquire can help
As you can see, there are several techniques and strategies you can employ to help expedite the sale of your business.
If you are keen to have some expert help on hand, we have the solution – our friendly, professional and highly experienced team will be happy to assist you with every aspect of your sale.
From finding you the perfect buyers to providing high-calibre marketing and helping with negotiations and due diligence, we will guide your sale from start to completion, leaving you free to focus on planning your next steps.
To find out more, give us a call on 01926 757100 or send an email to Hello@harrisacquire.com. We look forward to working with you!
If you are weighing up a sale, our business sale advisors can talk you through what the process actually looks like. If you would rather start with the number, ask for a free business valuation.
For a realistic view of the timescale rather than the quick version, see how long it takes to sell a business.
