Selling or transferring ownership of your business is a huge event. Emotionally charged, full of opportunities and potential pitfalls, seeking out specialist advice when exit planning can give you peace of mind and help turn your transaction into a roaring success.
In Cooper Parry’s Business Services & Outsourcing (BSO) team, one element of their multi-dimensional support is getting businesses ‘exit ready’, plugging any internal knowledge gaps and freeing up your resources to focus on growth.
Below, you’ll find the team’s top tips for preparing your business for an exit, split across three key stages. And if you’d like to find out more about how they can support your journey, get in touch.
BEFORE: PREPARING YOUR BUSINESS FOR AN EXIT
The most important work happens long before you put your business on the market. Any potential buyer will scrutinise your financial data closely, and that’s why it’s imperative the numbers are accurate, timely, and easily accessible.
Having robust systems and processes in place can help you achieve that, but staying on top of these gets harder and harder as your business grows.
So, look inward. Are you using any redundant or inefficient systems? Are there training needs you need to address? Can your tech stack be more streamlined, or integrated? Does the data at your fingertips give you the insights you need? And if so, can you get it quicker?
Any potential buyer wants a well-oiled machine, and our BSO team help clients move towards that, reviewing systems and processes, and suggesting improvements that lead to better management information, which is another key factor for buyers.
Similarly, getting specialist advice to help you understand your key KPIs when exit planning and show both management and your wider team are focused on these can drive a successful exit.
DURING: MAXIMISING VALUE & MAKING A SMOOTH TRANSITION
To ensure the exit process goes smoothly and the value of your business is maximised, management information is, again, critical.
We’ve seen businesses underestimate the importance of robust financial reporting time and time again, and often, it comes down to knowledge gaps.
We’ve worked with multiple clients who thought their financial information was in order, only to discover that much of it was either incomplete or inaccurate, simply because their finance team didn’t know any better.
This lack of clarity could derail a sale, and in these instances, our BSO team don’t just correct the information, they educate and reshape a business’s finance team for the future too.
We can also support you through the due diligence process, answer questions, provide a back office finance function and be there as your trusted adviser through what can feel like a tedious, lonely process.
AFTER: GETTING SETTLED IN
The work doesn’t stop once the sale is complete. Handing over a business you’ve been building for years can feel daunting, but we can help you and your team settle in, while also helping the new owners get comfortable with the structure of the business.
That could mean we act as a fractional CFO, or use our knowledge of the business to be an ongoing strategic guidance point for you and your support network to lean on.
So, if you’re thinking about selling your business or transferring ownership, get in touch with CP’s BSO team. With our help, many businesses have seen their valuation increase significantly, from 2-3x multiples to 4-5x multiples, proving exit planning preparation and expertise can make all the difference.
