Wondering whether now really is the right time to implement your exit strategy? There are people currently looking for their next opportunity, who might be right for the future of your business.
If you, as a business owner, had anticipated 2020 being the year you implement your exit strategy, you may be feeling uncertain about whether this can go-ahead, with the current situation around the pandemic. You may also be thinking no one will be looking to buy during this period. These are very valid concerns some of our clients have shared with us; so, you’re not alone in wondering if now is the right time to sell your business.
The good news is, based on what we’re currently experiencing within the Transworld network, and what we have seen in recessionary environments over the last 40 years, businesses are still sold. Investors are still investing in a viable opportunities. Entrepreneurs are still building their portfolios. Due to corporate downsizing we actually see more buyer activity during these periods.
Let us reassure you: If you have a goal you want to pursue, as part of your exit strategy, you can! You won’t have to wait another couple of years whilst the UK and world recovers from Covid (whenever that may be). However, there are some extra measures you can take, to increase the appeal of your business to prospective buyers:
Don’t shy away from the current situation
During the due diligence process, your buyer may be keen to understand the experiences you’ve had with your suppliers and customers, as well as any changes you’ve made to keep your business healthy throughout the pandemic. We’ve certainly been asked this question from our buyers when we’ve approached them about a new client we’ve brought to market.
Make it easier for them to see the full picture from your implementations, rather than leaving them to dig out half-truths for themselves. If you can show you have maintained strong connection with both your suppliers and your customers, this shows your buyer can also carry their new business forward.
Highlight your strengths
Many businesses adapted well to the pandemic. If your business was one of those which has particularly thrived in 2020, use this to your advantage when presenting your business to the market.
Among our clients, we also saw – and supported – owners who could pivot their business to meet, head-on, changes to the way they could operate. This not only allowed businesses to stay open, keeping employees in work, and the supply chain moving, it also increased the market value of these businesses as a result. Your actions will help show the sustainability and adaptability of your business.
Those businesses which were classed as “essential” can show their positive affect in keeping the UK open for business.
Clarify your reasons for exit
There may be a hint of suspicion in some prospective buyers, who are looking for a secure future for themselves. Why are you selling? What went wrong? What are you seeing about the future which you’re not sharing? By clarifying your reasons for implementing your exit, now, you offer assurances to the right buyer, your business still has a lot of growth left to achieve, in spite of the volatile economy.
As a baby boomer, it is your time to slow down and enjoy your retirement. As an entrepreneur, it’s time to work towards your next big goal. As someone who’s dreaming of moving to a new area, or a new country, it’s time to bring your dream to life. Whilst it’s no one’s business but your own, talking openly about your reasons around why you are ready to sell, helps us to understand what you hope to achieve through the sale, as well as a prospective buyer to feel confident about the purchase.
If we can support you, in any way, to sell your business, as you implement your exit plan, please do give us a call on: 0203 911 0159.