With the appointment of a new prime minister and the prospect of a ‘no deal’ Brexit causing uncertainty across the UK,
it is understandable that business owners are concerned about whether market conditions will affect their businesses sale, many will find themselves thinking “is now really the right time to sell my business?”.
In this article we will be sharing with you why this is the wrong question to ask and how despite current uncertainty, if you do your research and correctly prepare for sale, you have the opportunity to take full control for your exit process and make it a seller’s market for your business.
First let’s take a step back and look at why people buy businesses. One of the top priorities for most businesses is the need to grow, evolve and move forward. How do you grow a business? Essentially there are two ways to develop a business; organic growth or growth through acquisition.
The first option tends to be the steady and safest route. Maybe through new marketing initiatives, hiring more salespeople, pushing sales to win more customers while looking after and developing the existing client base. Then you keep your fingers crossed that all that time and money you have just spend pays dividends.
Some businesses decide to fast track growth by acquiring a complementary business, this is normally a higher risk strategy that involves much time and financial resource, but if successful, the acquirer is rewarded with a large leap forward in business. A good acquisition will bring revenue and profits, new customers, staff, new markets and territories, brands and intellectual property, the list goes on.
The need to grow a business sits within the DNA of all entrepreneurs, as a business owner you need to recognise that if your business is not moving forward, by default it is moving backwards. Acquisitions support the greater need for business growth, a business that has identified a market opportunity, but does not have the time or expertise to act, will tend to acquire. This is the fuel that drives the international merger and acquisitions market.
Despite Brexit and other market challenges, business owners, investors and shareholder will still demand growth. There are always going to be economic and political uncertainties along the road, but the appetite for acquisitive companies is stronger and always survives market fluctuations.
If we go back to the question ‘Is now the right time to sell my business’, the answer is based on how prepared you and the business for the all-important sale and exit process. A well run, profitable business will always find a buyer regardless of market conditions. It’s up to you to prepare your business for sale so you can secure the best deal value for your business and attract the right buyer.
If you would like to receive confidential strategic advice on how to prepare your business for sale, contact our exit advisors at Vexus today.