Selling a business

[rufmeister]

Does anyone have any experience in selling a business?

Where did you advertise it, and would you recommend it?

I have thought of contacting local companies who do the same thing to see if they might be interested, but my main concern is word getting back to my staff, and them leaving, before I get any serious interest.

Any advice greatly appreciated.

[Frimley111R]

Yes, I have a lot of experience in this sector. How big is your business (T/O) and what else can you tell me about it?

[superlightr]

What type of business is it? Different specialist for different type of businesses.

[DSLiverpool]

Note my legal fees were covered in the agency deal and with hindsight the solicitor I had to use didn't do a great job and it caused me hassle further down the line. I wouldn't recommend the agency I used

[Frimley111R]

DSLiverpool said:

Note my legal fees were covered in the agency deal and with hindsight the solicitor I had to use didn't do a great job and it caused me hassle further down the line. I wouldn't recommend the agency I used

Always use a solicitor who knows M&A. The amount of business sales that have fallen because a company's usual solicitor thinks they can do the work...

[Thankyou4calling]

Selling any business is difficult unless it's got property assets, they are easier to value and give security to the buyer if it all goes pear shaped.

Generally between 3 and 8 times EBITDA is realistic but it depends on the sector, size of business and of course a willing buyer and seller. Do you have three years accounts?

Some businesses like Fish and chip shops, Newsagents sell quite well as they can provide a decent living for a modest (in world terms) outlay thus the market of buyers is wider than a business which has few assets other than an order book which can dissappear as soon as the owners do.

One caveat, if you come into contact with Turner and Butler be careful :-)

[StevieBee]

rufmeister said:

I have thought of contacting local companies who do the same thing to see if they might be interested, but my main concern is word getting back to my staff, and them leaving, before I get any serious interest.

In my experience (on both sides of the fence), I'd say it's almost impossible to keep your intentions off radar amongst the workforce for any length of time. People you work with closely become very perceptive and your demeanour and actions will change as you progress through this and they will guess.

Every situation is different but you'd do well to talk to the staff about your intentions once you are certain that's the route you are going. They will be far less likely to leave if they know than if they find out through other sources.

You never know, they might look at a Management Buyout

[PugwasHDJ80]

Frimley111R said:

DSLiverpool said:

Note my legal fees were covered in the agency deal and with hindsight the solicitor I had to use didn't do a great job and it caused me hassle further down the line. I wouldn't recommend the agency I used

Always use a solicitor who knows M&A. The amount of business sales that have fallen because a company's usual solicitor thinks they can do the work...

100% this

I wouldn't be recommending a solicitor unless they were totally M&A transaction focussed and totally independent. We recommend a panel of 4 solicitors and leave our clients to choose without our input (unless specifically requested- even then the client must be happy and confident).

OP I work in this sector leading and negotiating transactions. I am more than happy to try and give you some objective advice if I can be at all helpful, either by email or phone.

The size of your business is key somewhat as that will dictate the most cost effective process to follow.