Some of the areas we believe it is important to focus on are your:

Customer Base – Ensure that you have a good spread of customers and no one customer dominates in terms of sales or profits. Make sure that more than one person in the company knows each customer. Focus on winning new customers in the period ahead of sale.

Management – If you wish to retire when the business is sold, it is important to ensure that there is management around you that can run the business if you are no longer involved. If the success of your business relies principally on you, then this could make the business difficult to sell and/or negatively impact the price you could sell for.

Business plans – Make sure you have a clear strategy for the future of your company and that there are plans (including financials) to back-up that strategic vision. You want buyers of your business to pay for some of the future as well as the success your business has achieved in the past.

Accounts – It is crucial to have accounts that are clear and intelligible. Potential buyers of your business will want to go through your accounts and financials with a fine toothcomb. It is therefore important that the relevant financial information is available and you can clearly explain them.

Legal – Make sure you have formal contracts with your suppliers, customers and staff. This is also important in relation to any premises you own or lease. Make sure there are no issues with these contracts if they are to be transferred to a new business owner. Make sure also that the legal entity a purchaser is buying is clean and as simple as possible.

Profitability – Make sure the business is operating as efficiently as possible. Review what can make the business more profitable and generate greater cashflow. Focus on things such as staff costs and general overheads.

Financing – Make sure the financing of your business is kept as clear and simple as possible.

Above all, make sure everything looks as clean and as simple as possible for the buyer. First impressions count!

To arrange a confidential, free and no obligation meeting with one of our Senior Partners please call 020 3178 8244 or send an email to enquiries@bowfin.co.uk

Contact BowFin to review Business Development Strategies for your company.