Selling your business is something that you may only do once in a lifetime and the advice of those who have experience of this type of transaction is, for most, essential if they are to avoid pitfalls and realise the full value of the business.

Triangle Corporate Services specialises in the freight, express, mail and logistics industries. Over many years it has advised many buyers and, sellers in these industries and worked with major institutions on projects in these industries. 

If you would like to discuss the prospects for selling your business and the steps needed to prepare your business for sale we will be happy to meet you for an initial free consultation.  Please contact Paul Byrne on +44 (0)870 9507900 or Paul.Byrne@triangle.eu.com.

If you are interested in this topic we list below some of the do’s and don’ts of selling your business.  We hope that this will prove helpful and interesting. If you would like to talk further please get in touch.

If you have partners or fellow shareholders, be sure that you all want to sell, You and your partners must have a clear idea of what you want out of the sale in terms of price, continuing employment for yourselves, and other issues such as staff or premises. Make sure that you have considered other ways of meeting your needs. This could include hiring new management, an MBO, an alliance, a new financing package or a business re-structure. You should be clear what you want and if others are involved you should act together and speak with one voice.

Legal, financial, taxation and other considerations will arise throughout the selling process and decisions should not be made without the advice of professionals experienced in this type of work. To be successful, the final deal needs to provide value, reduce risk and minimise taxes for both parties. To achieve this, deal structures including consultancy contracts, warranties, and earn outs may be used. To get the best deal, you need the best and most experienced professional advisors.

Be realistic in your price expectations. Putting your business on the market is time consuming, costly and potentially damaging to your business and there is no point going to the market with a minimum price tag that no reasonable buyer will meet. A buyer will pay for the business as it is now, not (generally), as it may be in the future. 

Your ability to get a good price for your business will be determined by its profitability, the industry-specific and general economic climate and the availability of willing buyers. There is rarely a perfect time to sell, but give yourself time to sell when conditions are good for you and the business. 

Leaks of information can damage the sale prospects and can also do irreparable harm to the existing business. All disclosures and releases of information should be controlled. All those involved and their advisers need to be asked to sign confidentiality statements. You should evolve a strategy for disclosures to employees and customers as a sale process continues.

A prospective buyer will be put off and often suspicious of unresolved issues, unwritten contracts and any other evidence of weak or untidy business practice. Make sure that before you put the business on the market you tidy up loose ends, resolve outstanding issues, and get into writing as many arrangements, contracts, and customer terms as is possible.

If you are thinking of retiring or leaving the business you need to demonstrate to the buyer that the business can run without you and that there is a competent management team in place. If there are inadequacies in the next level management, seek to remedy them by training or recruitment.

Your accounts and financial forecasts will probably be the most important factor in agreeing a price for your business. You need to have up to date statutory accounts, up to date management accounts, a budget for the current year and forecasts for the coming years.  In many cases the accounts will need to be re-cast to add or subtract items such as owner's salary and fringe benefits, property costs, special reserves and other abnormal items.

In addition to accounts a potential buyer will want information about your personnel, customer base, competition, assets, IT and operations. Prepare as much as possible in advance and be ready to provide relevant detail.

Remember that well presented information adds to your credibility and improves understanding of your business.

In any business sale there is likely to be interest from ‘time wasters’, and those on ‘fishing trips’ as well as genuine interested buyers. You need to know that your buyer has the means to pay and, if there is a fit, will go through with the deal. Failure to screen buyers can lead to breaches of confidentiality and significant wasting of time.

Don’t underestimate the time taken to sell a business and the drain on management time from the sale process. You should recognise that you are selling the business on its performance and it must continue at its best throughout the sale process. It is vital to your credibility that, as results emerge, they are in line with, or ahead of budget. And, if the worst happens and you are unable to sell your business it is important that you should not have neglected to make important business decisions.

For many this is the biggest transaction of their lives. It is also a complex transaction. For these reasons it is important that all the best negotiating skills are brought to bear to bring off the best possible deal.

Due diligence issues are very important to the selling process. Problems at this stage can cause delays or re-negotiation at a late stage in the transaction. You should be prepared and organised. You must be able to defend and substantiate representations made during the selling process.

Triangle Corporate Services specialises in the freight, express, mail and logistics industries. Over many years it has advised many buyers and, sellers in these industries and worked with major institutions on projects in these industries. 

If you would like to discuss the prospects for selling your business and the steps needed to prepare your business for sale we will be happy to meet you for an initial free consultation.