It’s a natural thing to get to the stage where you feel like you have given as much as you can in your business. You have created it, built it and have grown it, and the success is a massive accomplishment, but so is deciding to move on to better pastures.
The UK is finally out of recession at long last and there is growing interest in business mergers and acquisitions, so it’s the best time to consider the sale of your business.
However, for the business you have taken years to grow and has required effort and endurance, you want to get the best deal you can. Therefore, considering every possible way to improve your business value is important for both yourself and your buyer.
Your company will have many desirable attributes that will catch the eye of a potential buyer but making sure that, as well as those obvious aspects such as internal operations are considered, hidden assets which have tangible value and are just as important to pushing the sale for as anything else.
In past cases, companies have been very much undervalued as competitive factors such as customers, internal processes and intellectual property; the ‘goodwill assets’ have not been considered, leaving the previous business owners unrewarded and undervalued for all of their efforts in getting the business to where it is.
Therefore, making sure these ‘hidden assets’ are presented in any possible merger/acquisition will improve your chances of getting the optimum price you would want. Once you have established this, the next step is finding a buyer who will pay a premium price and ensure that your business will be pushed further into significant growth.
The purchaser could have numerous reasons for interest in you company, from growth in a new geographical area, to entry into a brand new market, or cross-selling their products/services with that of your own. Either way, as long as you feel it will do the future of your business great justice, any of these reasons could be significant enough to sell.
A similar case has happened recently in the British high-street chocolate chain Thornton’s, as Italian confectionery giant Ferrero International has made a huge £112 million pound offer to buy the UK chain. Thornton’s have encouraged shareholders to back the deal as Chairman Paul Wilkinson has said that “with its strong family heritage, Ferrero would present a good cultural fit”. Therefore, as well as not just getting a massive price for the sale, things such as heritage and culture, important tangible factors have been included in the driving force of the sale.
Your company may not be a giant like Thornton’s or Ferrero but whatever the company size, we can see various factors are considered during a takeover, however big or public the sale is.
For most, selling your business may only happen once so selling it for its full potential is of massive importance for both your personal and financial wellbeing.
For more information or help and advice on selling or merging your business, we are here to help so just get in touch.
Concept taken from: http://www.sjpinsights.co.uk/article/hidden-gems/charlottepoolegraham/?utm_source=E-Briefing%20Service&utm_medium=Email&utm_campaign=Business%20Insights
Research from: http://www.growthbusiness.co.uk/news-and-market-deals/mergers-and-acquisitions/2487386/thorntons-shareholders-welcome-news-of-112m-bid-from-ferrero-interational.thtml