Selling your business

This is one of the biggest decisions you as a business owner can make in your life. Wherever you started from, whatever journey that got you here, you've now arrived at the decision to sell your business. No doubt you have a lot of questions, this isn't a process that people go through often in their life. It's the equivalent of training for a marathon and not knowing how to cross the finish line. At RDA, we've helped many business owners through this milestone, and our team understand each step of the way. Here we've outlined what you need to think about now that you're starting this process.

1. Prepare the business

Number one decision is to decide what's being sold. Be very clear on what you are actually selling are you selling the company, are you selling the trade name, the customer base, the business goodwill or property.

2. Valuing the business

After you decide what you're selling, you need to know how to calculate what your business is worth. There's many techniques to determining the value, while paying particular attention to your specific industry.

 

3. Tax planning

Let's be straight, no one likes paying tax. The goal of tax planning is to understand what you need to take into consideration when factoring tax into selling your business. The sale needs to be structured to your circumstances in order to gain maximum tax advantage.

4. Marketing your business

If you sell a business and no one is around to buy it, the valuation and preparation is irrelevant. There are many ways to market your business and get the word out that it's for sale. 

 

5. Selecting your buyer 

Understand the combination of the open market, buyers you already have in mind, and weighing up the best buyer for your business. It's more than just about the price. Do the buyer's values match yours, for your business, your employees and your customers.

6. Negotiation

Negotiations can be formal and informal and start with the first meeting and end with the signing of contracts. They're a constant in this journey, and involve trust and respect.

 

7. Due diligence

So far, we've thought around our price, buyer and market but there a lot more we need to be aware of. Now it's time to complete our deep dive into the business itself. All things legal, commercial and financial are the focus here. 

8. Finalising the sale

We're 7 steps in, this is what we've been working towards. Here we finalise the price, agree the terms, and resolve any issues. You started the process to sell your business, now let's sell it.

We're not one piece in this process, we want to travel this journey side by side with you. Whether we've been by your side from the beginning or if you've worked with many other advisors in the past, we're here to start and end this journey along side you. If you're interested in more detailed information or have any questions about selling your business, fill out the form below and we'll be in touch.