Sell My Business UK

Have you ever thought to yourself; How am I going to Sell My Business? Have you considered what your exit strategy is and when you are going to execute it?

Whether it’s a business retirement sale, you have had enough and are burnout or you’re selling due to health issues, Milkology can offer you a quick and painless business sale. Milkology will buy your business from you!

There are lots of things to consider when selling your business. Who is going to buy your business probably hasn’t entered your mind?

Only 7% of businesses advertised for sale in the UK actually sell. Therefore, out of the 80,000 businesses advertised for sale only 5,600 will sell.

Retirement Business Sale

Are you considering selling your business? If you want to sell your business to retire click here for an easy sell.

Burnout Business Sale

Are you considering selling your business? If you want to sell your business and you are burnt out click here for an easy sell.

Illness Business Sale

Are you considering selling your business? If you want to sell your business fast due to illness click here for an easy sell.

Sell My Business UK
A How-to-Guide

We understand that there have been many years of blood, sweat and tears invested in building your business.

So, when it comes to selling your business, It can be an extremely difficult decision and one that shouldn’t be taken lightly.

When the time is right, there is a wide range of options for you to choose from. These options include:

  • Selling your business privately
  • Sell to a competitor or strategic buyer
  • A management buy-out or selling to an employee

Selling to Milkology is the easy alternative – We Buy Businesses!

Selling Your Business Privately

Sell My Business UK - Advert

The common misconception among sellers is that listing a business for sale is easy.

Simply gather the information together, copy a brokers write-up and then list the business on a  popular business for sale website.

The enquiries will come streaming in and your company will sell in no time.

Unfortunately, this is not the case.

The best place to advertise your company privately is on websites like Daltons or Business for Sale both sites are used by private sellers and brokers. Unfortunately, if you only have one business to sell, you have to try and stand out in a flooded market place. That being the case, you can buy all of the listing upgrades, but statistics show that the average listing receives just 17 enquiries.

One of our recent clients received 9 enquiries in eight months. You then have to consider the time-wasters, those who blanket apply to get information on every business, and then those who aren’t qualified, they do not have the access to the required funding. You may be left with one or two potential buyers.

Then follows due diligence, an appraisal of the business undertaken by the prospective buyer, establishing its assets and liabilities, evaluating its commercial potential. As a result, this can take between three to six months depending on the size and complexity of the company.

Assuming like many others before you, you don’t manage to find a buyer, then how do you find a private buyer? Unless you have a large network, the answer is with great difficulty.

Selling to Milkology is the easy alternative – We Buy Businesses!

Selling Your Business To A Competitor

Selling Your Business To A Competitor

Whether you’re ready for retirement, changing professions, or simply exiting your industry, selling your business to a competitor can be a bitter pill to swallow.

Although you may think that the process of selling a company is the same in any industry, selling a business to a competitor requires a unique kind of due diligence. And if you have never gone through the specific process of selling your business to a competitor before, it will be a steep  learning curve. Just as buying a business will require certain skills and knowledge, selling a business will too—especially when you’re dealing with a competitor as a buyer.

When you sell my business UK to a competitor, always proceed with caution. Competitors from the same industry may be using the premise of a business purchase simply to learn more about the inner workings of the business and the clients that you have.

Realise that enquiries from a competitor may or may not be a serious prospects. Separate the serious from the curious by requiring a mutual (NDA) non-disclosure agreement followed by an information exchange that requires buyer background information before sharing further information from your business. This exchange allows the seller to determine whether the competitor has sincere interest and capability to make the purchase. It also tests the competitor’s motivation. If they’re ‘just fishing,’ they won’t be interested in sharing confidential information.

Selling to Milkology is the easy alternative – We Buy Businesses!

 

Example of selling to a competitior

One of our clients that tried selling to their competitors describes the timeline of events below;

February – A competitor approaches with a healthy offer. The acquisition to be paid by company stock. Following due diligence, the value of the stock had halved, so the deal fell through.

April – Another offer came in. It did’nt transpire.

August – A cash offer is received.

January – An agreement reached.

March – The deal falls through.

That whole process has taken over a year and still no tangible progress in selling the business.

Selling to Milkology is the easy alternative – We Buy Businesses!

Business Management Buyout

Sell My Business UK - Management Buyout

A management buyout happens when an owner of a business sells to the existing management team.

MBOs began around 30 years ago and has continued to increase in popularity. It’s a way for existing owners to find willing and knowledgeable buyers, and gives employees the chance to progress in their careers.

Management buyouts can happen in any industry with any size of business. Or, they can be used to break a particular department away from the core business. This allows owners to dispose of their interest, or even to save a business from administration.

An MBO can be the perfect solution in one situation. However, there are also many pitfalls which would make it unsuitable for another.

MBO’s Can Seem attractive

MBO’s are attractive to the seller for many reasons, sell my business can be a lengthy process, finding a buyer, drawn-out due diligence through to the transition period.

Selling to your existing employees can be an attractive alternative, as it is deemed quicker, they already know the business inside out.

As well as a faster and easier sale, the seller also gets peace of mind that their business is being passed onto a group of people they know and trust. For the buyers, it’s usually the easiest, quickest and least risky way to step up and owner a business. This allows individuals to fulfill their ambitions of being an owner manager, of taking home a larger slice of the profits. The alternative, to start a business from scratch, contains many more unknowns and can take longer to see positive returns.

An MBO can change a business from publicly traded company to private limited company. Above all, it can reduce the paperwork and legislation requirements and more. The business can become more streamlined merely by removing these burdens.

Disadvantages of a MBO

MBOs are never straightforward. In the first instance, it is rare to find a management team that has enough financial power to enable them to buy a business. Therefore,  additional finance is almost always required.

This changes the dynamics, introducing debt or spreading equity thinner. Repayments and dividends eat into profits and squeeze the margins. Many outside investors, venture capitalists or private equity partners will want some form of control over the business. While this may simply be an non-executive director, the MBO team will soon find they’re still answerable to somebody after all.

In addition, investors often want assurances that the MBO team is committed to the cause. They may demand that each individual delves deep into their own pockets to contribute to the purchase. An alternative to outside finance would be owner financing. The owner of the business extends credit facilities to the buyer of the business, MBO with owner finance comes with its risks.

In conclusion, when selling your business the risks are high. A common occurrence with many MBO teams is that it is the first encounter of business ownership. Experience at management level does not always translate into the ability to own a company. An MBO team will need to ensure it has the right mix of skills to lead a business, from HR to finance to operations and beyond. One of the team will also need to take an overarching managing director’s role. Agreeing on who this should be, without resentment from other parties, is not always a simple task.

Employees have previously been caught breaking insider trading laws. They purposefully allow the business to underperform, thereby decreasing the sale price in the period before the negotiations.

If you are thinking of sell my business, Selling to Milkology is the easy alternative

How to sell my business?

There are many several options when selling your business, common sales channels include;

  • Selling through a broker.
  • Sell to your management team (Management Buy-Out).
  • Or, simply selling to Milkology.

I can’t sell my business?

You are not alone, only 7% of businesses advertised for sale in the UK actually sell. Therefore, out of the 80,000 businesses advertised annual, only 5,600 will actually sell. Contact Milkology. for a free, no-obligation appraisal.

Where do I sell my business?

First, you need to decide if you are selling through a broker or selling your business yourself. If you choose to sell the business yourself you can use websites such as Dalton’s or business for sale.

Alternatively, Milkology is the hassle-free way to sell your business.

When is the right time to sell my business?

There are endless reasons why an owner would want to sell their business. It could be that it’s ripe for growth and needs someone new at the top, or that the risks no longer seem in proportion to the rewards.
Personal circumstances may mean you’re just too busy to run your own outfit, or, quite simply, you want to collect on all that work and time you’ve invested.