Have you ever dreamt of selling your business at an attractive price, enabling a comfortable retirement?
Many successful business owners envision this grand finale, believing their hard work will pay off handsomely when it’s time to exit.
But here’s a sobering truth. Selling a business is much more difficult than most owners appreciate – even if your business is healthy and profitable.
I recently came across a survey revealing that in the US, only around 30% of businesses turning over $1-30 million are successfully sold when put on the market. I’m sure the picture is not much different here in the UK.
So the odds are stacked against a successful sale.
One of the most common reasons businesses fail to sell is the discovery of financial skeletons during the due diligence process.
Imagine a prospective buyer delving into your company’s financial closet, only to find blurred lines between business and personal expenses. It’s not that uncommon. We’ve even encountered a case where the business was paying its owner’s mortgage!
Inconsistencies, missing records, and disorganised accounts are equally disastrous for your valuation. They tarnish your reputation and can even render your business unsellable.
If you ever plan to exit your business through a sale, even in the distant future, you must ensure your financial records are squeaky clean. The buyer will scrutinise them with a fine-tooth comb.
Waiting until the last minute to fix discrepancies is very difficult. It’s best to start today and build your business with the intent of making it sellable at any given moment.
This is where the Outsourced Finance Department can help.
We have a proven track record of guiding businesses like yours towards a successful exit. We specialise in professionalising companies’ finance functions, ensuring that your financial practices are world-class and that the records you keep are immaculate.
We have also helped several companies manage the sales process.
I’ll never forget one such company, a few years ago. During due diligence, the prospective buyer scoured their records and couldn’t find a single fault. The buyer was so impressed they paid top dollar for the business, and retained our financial management services! That’s the power of pristine accounts.
So if you, too, have a sale in mind one day, don’t let messy accounts or disorganised records become the barriers to your future prosperity.
Get in touch today, and let us help you prepare your business for a lucrative sale.
Simply hit ‘reply’ to this blog or call us on 01279 647 447 to learn more about how the Outsourced Finance Department can help you become one of the 30% of businesses that sells easily, and get a price that will set you up for life.
Warmly,
Garry
