September 4th, 2018.

Selling a business is one of the most significant events in the life of an entrepreneur and getting it right is not easy. In this piece, speaks to Peter Gray and Caroline Belcher of Cavendish Partners, who review the key stages of selling a business and how to navigate them successfully to maximise the price on sale.

Select the right exit route and time your exit strategically
The starting point for selling your business is choosing the best exit route, advises Gray. ‘Consider your objectives and then select the route that best matches them. For example, a trade sale is probably best if you want to cash out and leave the business, while private equity represents the best alternative if you are looking for a partial exit and to stay with the business for a period thereafter.’

Once you have selected your exit route, focus on getting the timing right – it is a key valuation driver, Gray says. ‘Though the financial performance and growth prospects for your business underpin what it is worth, valuations can be driven up further by a buoyant M&A market. Valuation bubbles may also arise and ramp up the multiples in your sector, so capitalising on these makes sense.’

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