You can only do your business transfer right once. Yet many entrepreneurs are not at home with that process. That's a shame, because you can only have control and influence if you understand what is involved in a business transfer.
With proper preparation, you significantly increase the chances of a successful business transfer and the chances of a disappointment are reduced many times over.
Transfer plan
Your business transfer is an important moment in your life, when you make personal and business choices. You are looking for answers to questions such as: what am I going to do after the sale and what income do I need to enjoy a carefree time after the transfer?
You describe this in the transfer plan. That way you are prepared, you know whether your expectations are realistic and the implementation becomes easier. A good plan will also help you in the later phase, when you are talking to a potential takeover candidate.
Start on time
After the personal part you map out where you stand with your business. In this way it becomes clear whether there are necessary improvements to make the transfer process run more smoothly. If you start five years in advance, you have room to resolve organizational snags.
All kinds of tax issues can also play a role, for example; you still have plenty of time to rectify them. Who is the best acquisition candidate for you? Is it a family member, a strategic party, or is another type of buyer a better solution?
Determine the value of your business
Financial statements say something about the past period, but a buyer wants to know what he can earn with the business in the future. Therefore, it is important to make your business acquisition-ready so that interested parties are willing to pay the best price. That way, you make it more attractive, you increase revenue, and that translates into your own return.
With a SWOT analysis you determine where you stand with your business. Then you look at what needs to change to make your business acquisition ready. A valuation is an important part of this phase, so you can get a good idea of whether it meets your future needs.
What must the acquisition candidate meet
Your business transfer also means a lot to your staff with whom, as an SME entrepreneur, you usually have a special bond. Therefore, many entrepreneurs want to ensure business continuity and employment for the future. Then the best buyer is someone who handles things the same way you do.
If you know what you want, you can better assess a potential buyer's offer. A beautiful business with good professionals can count on interest from acquisition candidates. With good preparation, you select at the front. You decide with whom you want to engage in conversation.
Preparation is key
With a well thought-out transfer plan, you increase the chances of a successful business transfer. During your orientation and preparation for it, you will discover whether you are ready for it, want to make some changes or perhaps want to wait a few more years.
A business mentor can take the lead in this process, highlighting what you need to take into account and making sure that everything is properly arranged. If you decide to sell, we will look for a suitable takeover candidate.
