Planning for the sale or transfer of your business requires careful timing.
On average, it takes about a year from the initiation of the sale process to its completion. Proper preparation involves identifying the necessary expertise in areas such as finance, law, social regulations, and technical aspects.
The 5 key factors to consider:
- Understand and identify the reasons for selling:
These can vary, such as retirement, a need for liquidity, or passing the business (partially or entirely) to the next generation. - Business size and scope:
Define the scope of the sale—whether it involves selling the entire company, its subsidiaries, or associated real estate assets. - Minimize risks:
- Restructure the business to reduce dependencies on key leaders or managers, as their departure during the sale could affect operations and potentially impact the company’s valuation.
- Address dependencies on major clients or suppliers to avoid disruptions in relationships post-sale.
- Be strategic:
Aim to sell when the business has strong visibility and stability, allowing potential buyers to confidently envision future opportunities. - Seek expert guidance:
BDO experts are here to assist you in evaluating the feasibility of your project, setting a timeline, identifying buyer profiles, and determining the value of your business.
With the right support and preparation, you can maximize the success of your business sale or transfer.