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You might not be considering your future exit at the time of starting your company, but having a plan in mind from the beginning tells business and investment partners that you are serious about what you’re looking to achieve. In order to get the most for your company you should think about the process several years before to maximise value. ‘It never hurts to be prepared and ensuring you have your accounts in order will also help you run the business day-to-day.

Also, it is important to study every part of your business from the perspective of a potential buyer.

‘Look at your company for flaws you would criticise in your competitors. Your accounts, brand and business plan – nothing should escape observation. This will allow you to ensure the first impression a potential buyer has of your business is a good one.’

It is a must to make sure you also have up-to-date accounts and cash flow statements and if there are any anomalies that they can be easily explained. ‘The time this takes will pay off in the value it provides the buyer in the event of a sale.

When preparing for sale it is also sensible to cut any excessive expenses. This way the buyer doesn’t have to cut any costs on top of the basic outlay of running the business. It also shows that you run a tight ship.

A business is only worth what a buyer is prepared to pay for it, so identifying the right company is crucial to getting the best price.

It’s important to find a partner that understands the business and can help to develop an appropriate exit strategy that will enhance a business’ value through effective preparation and presentation.

We at Exit Strategy Consultants are regularly approached by firms and individuals on the look-out for companies they can acquire, whether to expand their geographic coverage, add specific skills or services to their offering, or to simply increase their size in the marketplace to give them a competitive advantage.

’When you start receiving offers, don’t feel pressured to accept the first offer that comes through the door, ‘If there’s at least one interested party, the odds are there are probably more, this gives you a good chance of getting the highest return for your business.

‘Show the buyer a bright future – demonstrate the potential of your business and how added financial support could fast track growth. Show how you’re noticeably different from the competition and how you are targeting opportunities for growth.’

Before finalising the deal, it should be business as usual for staff, customers and suppliers. Any uncertainty can damage business relations and spook the buyer. Be clear about your reasons for selling. ‘It may be you were made an offer you can’t refuse or you may feel that the business and staff have better prospects under a new owner. Whatever the reason, be sure to communicate any substantive changes to working practices that can be expected as part of the deal.’