Most businesses that get taken to market to sell fail to do so. According to a recent survey by Bluebox (an award-winning corporate finance firm), this figure is almost 90%!
The obvious questions to therefore ask yourself in advance of selling your business is “why are so many of these businesses unsuccessful?” and “what can I do in advance of an exit to maximise my chances of a positive outcome?”.
Sale processes can collapse for a variety of different reasons – many of which are in your control. Some of the most common reasons for failure are as follows:
- Starting a sale process with unrealistic pricing expectations
- Conflicts arising because of misaligned management and shareholders
- Trading issues during a sale process
- Low confidence in trading results due to a lack of systems
- Issues arising in due diligence
- Lack of an experienced advisor to assist with the exercise
To protect yourself and your business against falling victim to a failed sale process as a result of one of the reasons above, or any other, it is recommended that you tackle any issues that may arise during a sale process in advance. That may sound obvious, but you would think the 90% statistic above would be much lower if this advice were adhered to!
Here at Velocity, we have designed numerous packages and products to support you on your exit journey. We also offer a monthly support package, which gives you access to our skilled team of corporate finance professionals who can provide advice as and when needed.
To find out more about how we can help you, speak to us confidentially on 0203 924 51510 or email us at info@blueboxvelocity.com.