Page 10 - Wealth of Experience - Selling a Business 2019

THE INTENSITY

OF THE PROCESS

Business owners often It’s not just the long hours and mental
feel very attached to their challenge but also the emotional drain.
business and rightly so. Those that have been through it talk about
the benefits of a strong and capable
During the selling process the team around them. A team that shares
inner workings are laid bare. the burden and provides them with the
Owners are asked to give a framework and support to make sound and
huge amount of information effective decisions.
about their business’s As we’ve heard, there is no doubt that the
operation. This often feels exit process involves a lot of work - during
very intrusive. the exit process owners put in long hours.
Of course, all the work involved is on top of
The preparation of the Information having a business to run. Decision making
Memorandum (IM) and due diligence, is often increasingly complex and important
can involve awkward and unexpected decisions are being made in what can
questions. We’ve heard of a business seem like a short timeframe.
owner in the retail sector being scrutinised
about their reasons for letting a salesman What many owners find tough is being
go fifteen years prior to the sale of the unable to be completely open with people
company - the lawyers will dig deep. they have worked with for a long time
while a deal is in process. Planning for a
Owners need to be able to manage various future where they’re no longer part of the
viewpoints and opinions. Selling a business company can mean having to hide certain
can be an exercise in diplomacy. Many things from your trusted employees.
build up their businesses from scratch or Where jobs may be at risk after the sale,
have been involved for many years. This the situation can often be very hard. The
can bring challenges, as it’s sometimes constant need for confidentiality can be
difficult for owners to make decisions draining.
around the exit process as they’re
emotionally attached. This is one way that There is always the risk of a breach of
external advisers add value - providing confidentiality - something that must
objective opinions. be managed. In case there’s a leak, it’s
important to think about how this can be
When asked, owners who have sold addressed before it happens by having
for the first time will frequently say they some form of emergency plan. Knowing
underestimated just how much time and what to say to the staff or suppliers is
effort it takes to conclude a sale. highly recommended.

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