Lambert Chapman LLP’s Nigel Whittle looks at preparing a business for sale to ensure maximum value is achieved

For many business owners, the last thing on their mind at the current time will be planning to exit from the business.

However, we have had clients who have suddenly made the decision to sell after receiving an unexpected offer, or following a change in personal circumstances.

Unfortunately, because of the urgency to sell, maximum value may not always be achieved.

In deciding on a price, the potential purchaser will normally look at the 3 to 5 year period prior to acquisition. They will consider many factors, including the ‘quality’ of the businesses' profit stream.

We therefore recommend that even if there is no intention at the current date to dispose of the business, the owner should consider implementing strategies which will help to increase value in the longer term.

Often these will be relatively straightforward and will assist in the development of the business. The time and costs involved in implementing such strategies are normally small when compared to the benefits that can be achieved.

Please telephone Nigel on 01376 326266 or your Lambert Chapman LLP Contact Partner should you wish further guidance on this subject.

 

 

 

Date:15 December 2009

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