Selling a Business?

Wednesday 23rd May 2018 News

Why use PAVIOUR PROPERTY SERVICES to sell your business?

(And why are we good at what we do)

Selling a business is rarely straightforward and you are going to need some help at some point during the process.

Some clients we have worked for had previously chosen to go it alone, however quickly realised that there is a lot more to selling a business than first thought, but many opt for the safer option of instructing us from the start!

Finding an appropriate buyer in a competitive market is no mean feat and then there are the other key aspects of a sale including valuation, marketing, negotiation and financing.

PPS can help you negotiate all these hurdles so it’s worth discussing your sale with us beforehand

Here are the key attributes we offer as a business broker:

 

Experience

The first thing you can be sure of with PPS is evidence that we have the essential experience to support the service we offer.

We are able to analyse P&Ls, balance sheets and tax returns at a glance.

It’s also worth noting a little about our track record. Seasoned broker and Co Director, Laurence Carroll of PPS suggests:

‘PPS be always be able to talk you through the details of other transactions we have successfully facilitated over the last 12-24 months. This will give you an idea of just how successful we have been.’

Laurence also suggests that, in doing this, you will be able to see how involved PPS was in each transaction.

‘PPS do not just do an inspection, get an offer and hand it over to the solicitors to sort the rest out.’

 

An Ethical Approach

As you may imagine, the world of business brokerage has its fair share of opportunism and poor service. What you should be looking for when you meet your PPS representative is a clear demonstration of professionalism and integrity.

‘From the first point of contact, PPS are interested in two things – gaining a thorough understanding of your business, and offering you a comprehensive outline of the sale process.’ says Laurence

You need to be assured that a sales strategy will be tailored to you and your particular business,

‘Be wary of any broker that doesn’t take the time to gain an understanding of your business before talking about fees and contracts…and anyone who seems like a car salesman or real estate agent. Selling a business requires a unique set of skills and is a lot more complex than just selling a car or a house.’

Mike Paviour, Co Director at PPS reiterates this point:

‘A good broker will listen to and understand the sellers requirements and objectives as well as being competent at completing a comprehensive and independent valuation of the business.’

Alarm bells should ring if a broker tells you your business is worth more than you genuinely think it is, or if they want a larger than average upfront fee:

‘Some brokers may try to charge a large upfront payment, on the back of various promises – an inflated sale price or some glossy advertisements in a magazine that in reality no one actually reads.’ says Mike

Some form of upfront fee can be expected, but this will depend on the size and value of the business and a success fee will also be charged after the sale.

‘The broker should have absolutely no troubles outlining his fees to If you think they seem high, ask the broker why. A good broker should have no problems justifying his fees. And a decent broker will be able to negotiate on his fees with the client so that both parties are happy – if he can’t negotiate a decent fee for himself, then what hope has he got negotiating a good sale price for you, his client?’

And always ask if the broker has any testimonials from previous satisfied clients. Any broker worth their salt will gather a few of these and have them at hand to reassure you.

 

A Tailored Sales Strategy

PPS will draw up a unique sales strategy that caters to the characteristics of your particular business as well as expectations in terms of price and timing.

PPS will be able to suggest a number of advertising and marketing strategies, both online and offline, that would fit with the size of your business and the industry it’s in:

‘PPS will be able to outline how we will present your business to the marketplace and provide an example of the type of Information Memorandum we intend to produce for your business. This document is a good reflection of our competence, skills, attention to detail and understanding of businesses in general.’ says Laurence

It’s also worth noting how we sustain confidentiality. The last thing you want is news of the sale being leaked before you’ve mentioned it to existing staff and customers’. Laurence says

‘It’s important to have someone on the seller’s side who knows how to qualify a buyer and who is only providing their business information to the right people. PPS must protect sensitive business information that may have been requested by prospective buyers, until such a time as it is deemed appropriate within the sales process.’

PPS intends to stick with you until the sale is made. Many brokers will just advertise your business online and leave you to generate your own meetings. Some feel their job is done when an offer has been accepted from a buyer. PPS offers guidance right up to the point of completion.

 

Great Connections

When it comes to financing the deal, most clients would rather not be involved, so PPS has access to finance experts who can advise the qualified buyer.

Another key attribute PPS offers is an extensive buyer database. If a broker has limited buyer contacts, they may end up approaching your direct competitors, the sensitivities of which are obvious. Knowledge of a range of complementary trade buyers and investors is a great asset to us here at PPS

Managing these connections takes some skill:

‘Buyers come from a multitude of different places and the costs associated with advertising, as well as the time needed to sift through the plethora of enquiries, needs to be handled by someone who understands the process properly and has the seller’s best interests in mind.’ says Mike.

It’s also worth finding out how many listings your broker is currently handing: too little could indicate poor motivation or a lack of experience. On the other hand, if they have a huge client base, there’s a risk your sale won’t get the attention it deserves.

‘Do you want to sign with a broker who has 100 listings of which he can in reality sell 3, or with a broker who has less listings of which he can sell a much higher percentage?’ asks Mike

Instructing PPS takes away all the efforts in time and research, but in reality is the right choice.

Are you interested in hiring a good broker to sell your business? Call PPS today.

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