Who Will Buy My Wonderful Business? – Part 2

In part 1 of this blog we saw how Bob Hollis, a man whose job it is to locate and negotiate with businesses on behalf of clients who want to buy them, gets sent around 4,000 business for sale in a typical year, of which he will look at 100, and sell 10.

So how does a business attract the attention of a potential buyer?  Two questions arise from this in my mind.  Firstly, when Bob looks at a business, how does he decide which ones to investigate further?  And secondly, what happens to the ninety that he looks at, but doesn’t take any further?

There are some fairly obvious pointers that Bob will look for, such as profit margin, industry sector, size of business and so on.  However, there is only a certain amount that a business owner can do to affect these.

There are, however, a number of markers that a business owner can work on to increase the chances of ultimately being sold.  These include:

  • Is the business dependent upon one person (i.e. the owner)?
  • Is there a strong management team?
  • Are there clearly identifiable products, or is all the IP (intellectual property) in the head of the owner?
  • Are there systems and processes in place that means the business will continue, just as profitably, without the owner?
  • What is the reason for selling?

When you see this list, the answer to the second of those questions (what happens to those Bob doesn’t bother with?) should now be obvious.  In order to increase your chances, address these issues.

There is a name for this type of activity – succession planning.  It is the phrase that every business owner knows, and yet, I would suggest, very few properly understand, let along act upon.

It is something that Ovation can help with.  By addressing operational issues of the business, by getting the staff and systems working really effectively, without relying on the owner, the business will be far more marketable when the time comes.

Blog: August 2019

We welcomed Paraplanner Paul Wells on to the team.Click here to find out more, including the first record Paul bought and why he wanted to join Ovation. As you know the Ovation Team are trying hard to reduce our plastic consumption in the office. Paul shared with us a very simple, but great way we … Continued

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August 31, 2019

Episode 46 – The Sharing Economy with Professor Tim Kasser

Join Chris, David and Producer Tommo for part 2 of our interview with Professor Tim Kasser. This time the focus is on practical ideas for financial wellbeing through consuming less. They also have the added bonus of helping to save the environment! With listeners questions and a serious tip not to be missed in #tightasstommo we have a very interesting episode for you.

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