2022 is a big year for changes to businesses. Back in February, it was expected that the majority of UK corporates were planning on undertaking mergers and acquisitions. The timing of this makes sense. It’s been a tumultuous few years for many businesses and, as everything started to settle into some semblance of normal, business owners realised they were in the perfect place to make some significant moves.
If you’re a business owner planning on making a change and you’re considering selling to a competitor, there are some things to consider.
Should I sell business?
First, ask yourself if you’re ready to sell. What’s happened to make you decide to move on? Are there ways to address any issues that have arisen or do you feel like you’ve done everything you can to keep things going?
Asking yourself why you’re selling up can either help you to take that step or make you pause and rethink.
How to sell your business?
Even if you’re set on selling, it’s worth considering a management buy-out before you proceed. This could mean that your management team acquires some or all of the business.
If you’re pretty much set on selling, you’ll need to think carefully about the process involved. This is especially the case if you’re selling to a competitor as it’s likely you’ll have an emotional reaction to taking this step.
First, consider your business’ value. Get it appraised so that you know the figure you’re looking for. By getting a professional to weigh everything up based on market facts, you’re doing more than going on what you feel it’s worth, which could be way off the mark.
Then consider the competitor who’s thinking of buying. They might be making all the right moves in terms of wanting to buy your business, but they could have no intention of buying and instead be trying to find out how your company operates. So, proceed with caution. Don’t divulge everything until you’re certain it’s a genuine offer.
Also, get the best deal possible. This sounds obvious, but as well as the sale, there are other elements that you could lose out on if you’re not wise to them. For instance, could you merge with your competitor and do a deal with them to stay on as a consultant? Or maybe you want to secure employment for your existing team. These are all things that can be negotiated before you sell. Ultimately, it’s your decision. But before you take the leap, do your research and make sure it’s something you want to do.
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