Exiting Your Business
"We can help you compete with the big boys by using pioneering exit strategies and concepts and realise a multiple of 10x or 15x EBITDA as opposed to the 2x or 3x multiple that SME's are averaging in the UK at the moment."
The exit from your business is arguably the most critical point in the life of your business and will have a huge potential bearing on to what extent you can then realise your dreams in life after your business.
But the process can be one of the most stressful experiences of people's lives. Business owners are often misled on the value of their business, resulting in a disappointing process and outcome. They are often lacking in support to properly prepare their business to maximise value and minimise the stress and frustration associated with the sale.
And finally, they are all too often tied into a long-term earn-out. Being treated as an employee when you have been used to being the boss or owner can be a very unpleasant shock. All too often, things go wrong and the final earn-out figure is very rarely successfully achieved.
I can help you through that process. Many advisers will talk about preparing for sale and maximising value. My focus will be to do all of this but whilst coaching you through the whole process. In doing so, I make sure that someone is looking out for your personal interests too and minimising the likelihood of excessive stress or disappointment along the way.
Hurdles to Selling Businesses
In the UK, SME business sales are averaging a multiple of roughly 2.2x EBITDA. This is much lower than years gone by and certainly disappointing for a business owner that has been hoping for a multiple of 5x or more. It is very much a buyers' market at present. This is enhanced by the fact that baby boomers started turning 70 in 2016. The impact of this is that a disproportionately large percentage of business owners are looking to exit as a result. There simply aren't enough buyers to support the multiples that we have been used to.
Alternative Solutions
Whilst SME owners are struggling to find buyers or realise a worthwhile multiple, much larger businesses are floating publicly and realising multiples of 10x or 15x EBITDA. By looking at alternative exit strategies to a traditional business sale or management buyout, we can advise on alternative concepts that can help you realise close to the same levels of returns as the 'big boys'.
If you would like to learn more about our 'Seller Coaching' and the various models and techniques we use to maximise your return and minimise hurdles, stresses and potential tripping points, get in contact and we can put some time aside to talk it all through.