When you decide to sell your business, you must be patient to find the perfect buyer. The process can take a long time – so when you find the right person, you want to ensure the deal sticks.
Keeping your business sale on track enables you to make your exit as planned, confident that you have left your legacy in capable hands.
However, business sales are extensive processes, sometimes filled with many twists and turns. It’s not uncommon for a deal to be disrupted or delayed. You must do everything you can to stop it from falling through completely.
We’ve compiled seven top tips to help you keep the sale of your business on course.
Ensure you have a reliable buyer
The early stages of the sale process should see you learn more about the buyer as they begin to show an interest in your business. You may meet them during the initial stage as they ask questions about the company.
Use this time to develop an understanding of the buyer equally. It should help you to uncover whether they seem serious or not.
While you shouldn’t be overly selective about who you sell to, getting a grasp of the buyer will help you to sort out the timewasters from those who are genuinely interested.
Outline your priorities and non-negotiables
It’s essential to know what your top priorities and non-negotiables are ahead of time. These are likely to be the deal-breakers that stand the most chance of disruption if the buyer disagrees.
Communicate these with buyers early in the process, so they know what to expect. If these aren’t acceptable to them, they have the option to walk away before it’s too far gone.
It’s also worth discovering the other sides’ potential deal breakers too. By understanding the most significant priorities on each side, you will see if there is the potential for the deal to come to fruition before too much time is wasted.
Compromise where possible
In a dream world, every part of your criteria will be met in the deal, and you’ll walk away with everything you want. However, buyers and sellers often have opposing desires, so negotiation is required to reach a point where everyone is satisfied.
Understand where you are willing to compromise, especially if it’s a factor that isn’t a deal breaker.
If you are happy to manoeuvre, do so. It will allow for a smoother process where you ultimately reach an agreement that culminates in the completion of the sale.
Provide the necessary information
A crucial part of the sale process is the buyer’s due diligence. During this stage, they need information about your business so they can conduct thorough checks and ensure they are happy to proceed.
It is key to provide all the documentation and information requested by the buyer’s representatives. Doing this promptly will speed up their checks and the process.
Remember to be honest too, as this will avoid any issues emerging later or bad sentiment that could harm the sale.
Work with professionals
During the sale, you and the buyer should recruit professional support to represent each side. This includes solicitors, corporate advisors, commercial finance brokers and accountants.
Your professional advisors will be much more experienced with the process, allowing them to guide both sides towards a deal successfully.
They also add a neutral voice to proceedings so they can navigate obstacles and work towards a fair deal.
Don’t panic
When you haven’t heard anything for a while, it’s easy to panic and assume your sale is about to break down. However, remember to hold your nerve and not make any rash moves.
It’s completely normal to have quiet stages in the process while your solicitors work on documentation or due diligence checks are undertaken. You must be patient while this happens.
Remember, a deal isn’t over until it’s over – so keep calm and carry on.
Keep the lines of communication open
Another crucial part of the sale process is constantly communicating with other parties to ensure everything is moving in the right direction. It will also allow you to highlight potential risks or problems ahead of time and work to rectify them. It is important to keep talking with the buyers and address any issues head on, as sometimes a commercial conversation just needs to occur.
Make sure you have regular contact with your solicitors and that they’re communicating with the buyer’s representatives. This will keep you abreast of everything happening as the deal progresses to alleviate any concerns.
In summary
Keeping your sale on course is crucial to a smooth exit from your business. Once you find an interested and suitable buyer for the company, you must do everything possible to prevent an avoidable barrier from disrupting the deal.
By remaining calm, communicating effectively and compromising, you will minimise the risk of the sale falling through for the benefit of everyone involved.
If you need advice before and during the process of selling your business, Pegasus Funding will help. Our services include creating a sale strategy that maximises value and supporting you through the sale process.