sUPPORTING YOU TO BUILD AND SELL YOUR BUSINESS
Do you have a business that the next owner wants?
You’ve worked hard to build your business – but has it been built to exit? When the time comes to step away, you want it to be valuable, attractive to the right new owner and, at best, to thrive without you.
I work alongside business owners to build stronger, less owner-dependent businesses – helping you increase value, reduce risk and prepare for a successful exit, whether that’s next year or several years from now.
Are you Exit Ready?
From my experience and observations – there is always an optimum time to exit your business. I encourage you to know yours and be ready for it. Don’t miss the best opportunities to exit on your terms.
In 2007, I set up Foster Bushell Business Brokers, due to my obervation of many brokers acting for the buyers to get a deal, to get paid commission – rather than guiding the seller to the best possible outcome for them. When my business partner, who led this business, retired I focused on other business interests including my mentoring.
I’ve since exited three of my own businesses – the first was a dream deal at that time, the second was stressful and I am not afraid to admit that I got stitched up with the third because I learnt so much about being ready and executing an exit from each of those deals.
Today I help business owners create great businesses that successfully change hands.
Together we develop the business with your timeline in mind – we get clear on your exit options – we focus on what drives the valuation for your business – we deal with the right people not anyone who simply replies to an online listing.
is YOUR business ready?
You may be ready to move on but is your business ready for someone else to take over?
That may be a sale, a management buyout or a family succession.
A common question I am asked……
“I’m ready to sell. Can you find me a buyer?”
….but often the business is not ready to pass on or sell becuase:
- the business is too dependent on the exiting owner
- there’s no second tier of management to take responsibility
- the business is not reliable or repetitive in terms of customers
- financial reporting is weak
- margins are under pressure
- the profit return is too low
- cash is poor
- or the asking price is unrealistic
A buyer, or someone taking on the business, will look beyond turnover and profit. They’ll want to understand how dependent the business is on you, the strength of your team and customer relationships, how predictable future income is, and whether the business can continue to thrive after you step away.
The stronger and more transferable your business is, the more attractive it becomes and the better your chances of achieving the exit you want.
what to consider.....
Successfully exiting a business is about much more than finding a buyer and agreeing a price. That may not even be the best exit fro you!
From my experience, there are ten key areas to consider when building your business to exit.
Financial Performance | Consistent profits, cash flow, quality reporting |
Owner Dependency | Can the business operate without the owner? |
Customers | Diversified customer base, recurring income, ideally contracted |
Team | Management capability, key people retained |
Systems & Processes | Documented, clear repeatable ways of working |
Growth Potential | Clear opportunities for a buyer to develop the business |
Market Position | Reputation, differentiation, defensibility |
Risk | Legal, operational, customer concentration, supplier dependency |
Transferability | Ease of handing over relationships and knowledge |
Personal Readiness | Is the owner emotionally and practically ready to sell? |
There are many different ways to exit your business – click here to read my article sharing the most common methods
Any exit – succession or sale – involves a valuation
One valuation method is a multiple of your Net Profit earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Some factors that increase the multiple are:
- Management team runs the business without the owner.
- High element of recurring or contracted revenue.
- Not reliant on single customer accounts (eg no more than 15–20% of turnover).
- Strong cash conversion.
- Documented systems and processes.
- Clear growth opportunities for the buyer.
- Clean legal and financial records.
- Low staff turnover.
- Strong market reputation and defensible niche.
- Multiple interested buyers.
But factors that reduce the multiple could be:
- Owner is too involved and essential to day-to-day operations.
- Revenue is project-based with little visibility.
- One or two dominant customers.
- Weak financial reporting.
- High staff dependency.
- Declining market.
- Outstanding legal issues.
- Ageing equipment requiring investment.
- Poor contract documentation.
- Falling margins.
It’s worth considering what you want from the sale, when you’d ideally like to step away, how dependent the business is on you, and what a buyer will see when they look beneath the surface.
Your financial performance, customers, team, systems, future opportunities and potential risks will all influence how attractive your business is and ultimately what someone is prepared to pay for it.
Understanding these things early gives you time to strengthen the business, address potential concerns and put yourself in the best possible position when you decide to exit.
My business is to support your business
Whether you’re ready to sell now or simply want to understand what you need to do to prepare, a conversation is a good place to start.
I can help you get the business ready for exit and then help you sell it when the time is right.
We can talk through where you are today, what you’d like your exit to look like and the steps that could help you get there with no pressure to sell before you’re ready.
Let’s talk about your next chapter.