HOW TO EXIT WELL BY LOOKING THROUGH THE EYES OF THE PURCHASER
BUSINESS SUPPORT
FIRMS UNDER THE HAMMER
HOW TO EXIT WELL BY LOOKING THROUGH THE EYES OF THE PURCHASER
When it comes to preparing to exit the industry , there ’ s an analogy that ’ s always there because it ’ s a good one – prepare your business for sale like you would your house . And to do this , just as you would with a property , you need to look through the eyes of the potential purchaser .
Doing this with your business will quickly reveal the key areas to concentrate on , such as enhancing efficiencies and removing risk , and there are practical ways you can do just that . In this article we will consider four areas to enhance the good and reduce the not so good to ensure you get the best price for your business . After all , you have spent most , if not all , of your career building it , so why be hasty when selling it ?
Declutter , but don ’ t depersonalise Making it easy for a potential buyer to see the true value of your business without distraction will create the right environment to begin negotiations . A buyer would want to see the key elements of the business in an executive summary , stating the key points such as :
• location
• client bank demographics
• charging structure
• recurring income
• type of business undertaken
• history of complaints .
Consider a prospectus detailing the main points with an executive summary on page one . The decluttering would involve making the key elements available quickly and succinctly , areas such as a robust client bank list ( no rummaging in filing cabinets ) and removing superfluous elements .
Maximise kerb appeal Take a look at your website and your supporting literature , such as your client agreements . How do they look and feel ? What sort of impression do they convey ? As Business Consultants supporting IFA firms , we see promotional material and business documentation every day . Some are very professional , giving a positive initial impression . Others aren ’ t . For the buyer this also leads into internal processes and policies . Is there a well-ordered compliance regime ? Are there well-kept procedural documents and record-keeping ? If the paint is peeling on the woodwork , a purchaser might start thinking about the integrity of the building as a whole .
Fix and clean Some things suffer from neglect , others through wear and tear – either way they may need a bit of a spruce up . Take your
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