Friday, 14 September 2012

Closing Down or Placing Companies for Sale? Your Company Could be More Interesting to Buyers Than You Think

In the present economic climate, seeing companies for sale comes as no surprise to many of us. And recent research published in borro’s Enterprise Ladder report states that over the past five years, nearly half (47%) of Britain’s small to medium sized enterprise (SME) owners said that they have considered putting their companies up for sale, or simply shutting them down completely.

What’s more, 21% of SME owners stated that they are "very likely to exit" their business within the next five years, while 26% said that they are "quite likely to exit".

Companies for Sale - click here for more information on how we can help you buy or sell a business.

Putting The Positive Into Placing Companies For Sale
But placing companies for sale need not be seen as a negative action.  While it can be hard for a business owner to see their company as a potential investor or buyer would, using a broker, such as Axis Partnership, can help you to assess your company’s strengths more objectively - and to find a buyer who fits the bill perfectly.

The current economy also means that some companies are struggling even though they have high demand for their products or services, their order books are full and they have the right people in place to fulfil them. Quite simply, getting the finance to fulfil the orders and grow the business is a sticking point and can lead to some SMEs considering closure.

These businesses are just the type of investment that buyers with the right financial power and creativity are interested in. And placing companies for sale, rather than closing them down, means that jobs can be saved and the effort that the founder has put in to get to the status quo has not been in vain.

Furthermore, putting companies up for sale need not mean that the business owner has to walk away with no future interest in the company that they have worked hard to establish.  With the right investor, the original owner may leave the company with a reasonably sized financial package, or may be able to stay on as a manager or a stakeholder in some form, but with the backing of an owner who has the finances to make the business vision a reality.

Some Signs You Should Join the Ranks of Companies for Sale Instead of Closing Down

Before closing down or placing companies for sale, we would recommend closely analysing and assessing your business, and if you can answer yes to one or more of the questions below, you could have a saleable business.

Full order books and eager customers - Is there a real demand for your product or service, but you can’t raise a loan for the raw materials, the equipment, labour and the like necessary to fulfil the orders?

Finance for change or growth - Can you see the potential for growth within your business or do you have plans for turning the company around, but just can’t finance them yourself?

Portfolio piece - Is your company within an industry where other companies are doing well?  Would it make an attractive addition to someone else’s portfolio?

One of a kind - Is your product, service or skill unique?

Valuable assets - Do you own your premises, the business equipment, your customer database or some form of intellectual property?

Brand awareness and reputation - Is your company well known and do your customers, stakeholders and prospects have a positive opinion of your business?

Axis Partnership - Finding Suitable Buyers For Companies For Sale

When it comes to working out whether your company should be placed for sale, it can be a tricky business. At Axis our experienced, dedicated and professional broker team have helped companies for sale from all sectors, as well as potential buyers, matching them to their perfect partner.

When you come to us, we can provide you with a no obligation valuation of your business. And if you would like to proceed with selling your company, we can help you to find a suitable buyer and help you through every step of your sale.

During this process we will work with you to create a sales memorandum, identifying the features and benefits of your business - the document from which we can go on to identify potential purchasers.

At all stages of the process we will ensure confidentiality, and this is also true when approaching prospective purchasers for you.  From here, once we have found a suitable purchaser, our in house advisors can help to steer you through the negotiation and agreement, should you wish, helping you to structure your exit, or otherwise from the business - whether you would prefer to stay on and run the business, or would prefer to leave altogether.

Finally we will help you through the process of due diligence to the completion of the final sale document - the contract.

If you would like to know more about how Axis can assist companies for sale, or for a no obligation valuation, call us on 0800 977 5855.

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