Don’t be the last Jedi in your business

Contributor:
Xeinadin Group

Date:

Category:

Share this article:

It’s that time of year where we look to the future and think about our plans, and for older business owners, that may include deciding when to retire, and how many more years to work in your business. That’s why it’s so important to systemise your business so your valuable knowledge is passed throughout your team – creating your very own team of Jedi’s!

We spend many hours with financial advisers, looking at how best to save for our retirement, building a pension, deciding upon investments and returns.  Yet the biggest asset for many of us is our business, and the time spent ensuring we maximise that value is often lost in amongst the day to day running of the company.  Years go by, and we assume we are increasing our business’ worth all the time, but just how valuable is your business and how will you practically achieve that when you exit?

Here are 5 points to consider:

  • How are you going to exit?  If you are selling the business, who to?  Is there a trade buyer who is already showing interest, or is there sufficient merger activity in your sector for you to assess if your business meets an acquirer’s typical parameters?  Have you got anyone to sell to in your trade or should you be considering an internal buyer, the team of Jedi’s you have created? Or a candidate you may have to yet identify and recruit?  The more potential buyers you have, the more chance you have of maximising the chance of selling your business for the value that you believe it is worth.
  • When are you going to exit?  This will of course be a personal choice, but you should also have an eye on the landscape in your sector.  Is there consolidation activity already?  If so, don’t miss the boat!  Once a purchaser has made a few acquisitions, they won’t be able to handle any more whilst they integrate and settle their new group.  Is there competition from overseas on the horizon or are there new products and technological advances in your market which could affect your valuation in a few years? Would it be preferable to sell earlier rather than later?  Carry out some research and ensure you have facts, rather than just gut feel.
  • What does your business look like to a potential purchaser?  Is it a risky proposition, or is it a well-oiled machine that generates profits without any hassle, even without you being there.  The more systems and efficiencies you can implement, the more it appears that the business can stand on its own two feet and will calm the concerns of a buyer. Take a look how Business AM: Step 9 – Systems for growth can help achieve this.
  • Can you be seen?  If an overseas buyer, for example, was looking for a company in your sector, how would they find you?  Ensuring a good web and social media presence, being a member of the trade bodies, winning awards or having positive mentions in the trade press, all contribute to your profile.  Make sure you can be found!
  • Make a plan and be organised.  Once you have reviewed your business from the point of view of selling it, rather than running it, you may recognise that changes need to be made to ensure it can be attractive to as many potential buyers as possible, and achieve the highest post-tax value when you sell your shares.  However, these changes don’t all need to be made at once, and we can help you prioritise with a timescale for the project, so that it doesn’t become overwhelming, but carried out fully. It will allow you to mould your business to your ideal purchaser.

To find out more detailed information for your own business and situation, get in touch, preferably before you are another year further on and considering the same questions over again!  Have a great New Year and focus on creating the most valuable business in the galaxy.

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

If you opt for acceptance, we will place all cookies. If you opt for rejection, we will only place functional and analytical cookies. You can adjust your preferences at a later time.

Accept Reject More options

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

Functional cookies
Arrow down

Functional cookies are essential for the proper functioning of our website. They allow us to enable basic functions such as page navigation and access to secure areas. These cookies do not collect personal information and cannot be disabled.

Analytical cookies
Arrow down

Analytical cookies help us gain insight into how visitors use our website. We collect anonymised data about page interactions and navigation, enabling us to continuously improve our site.

Marketing cookies
Arrow down

Marketing cookies are used to track visitors when they visit different websites. The goal is to display relevant advertisements to the individual user. By allowing these cookies, you help us show you relevant content and offers.

Accept all Save