Selling up... any advice?

[TraceyHand]

Does anyone have any advice on how to go about selling a business?

Due to personal circumstances, I am selling Budget Bumps and I'm keen to sell it as a going concern.
I'd gladly sell it as is, with stock etc... business is very good at the minute and we have some successful advertising right now (we have an ad in one of the magazines given by midwives)

Business is good (although I've still not done my 05/06 accounts...naughty me!) and I'm fairly confident I can show good turnover and growth.

So, where to star? Anyone able to recommend someone who can give tailored advice on selling a business?

Any magic formula for calculating it's worth?! (I wish!... no need for the "it's worht whatever someone is willing to pay" line!)

General advice needed really.. I'm keen for a quick sale but I'm not going to give it away as I need as much as I can get really.

Any advice gratefully received
Cheers
Tracey

[chris ashdown]

(no need for the "it's worht whatever someone is willing to pay" line!)

Tracy

Sorry to hear you are bailing out, I sure your forum outings have given other young companies the motivation to keep going

I can only suggest you look at your buisness in a cold morning point of view and ask for what you think it's worth plus a small bonus. you can then always negotiate down if required

Your accountant may be a good place to start with, they will know of local companies or individuals who are looking to buy in, but first you will have to have up to date accounts as no one will look at it without them

Also try advertising in the local paper, I imagine many Mums would be looking for a part time job and being local you could hopefully work with them for a time to hand over

What else can one say but best of luck for the future

[jont]

Any magic formula for calculating it's worth?!

Often business for sale will show figures for the stock in hand and the value of the business... the first is simple to calculate it is the company worth that is the sticky point. You will often see quoted anywhere between 1x to 5x the annual turnover ... most investors expect to see a profit no later than 5 years and often around the 2-3 year mark.

As Chris says - without any up to date books nobody will take you seriously as it is the first thing a potential buyer will ask for.

[TraceyHand]

thanks Chris and jont,
I am in the process of doing our accounts. I'm normally completed long before now but, tbh, I've been so busy I've just not had chance to finish..

Personal finances have had to take an upper hand recently but I'm back sorting the books now, they'll be finished in a week or so.

BB has been making a decent profit for a couple of years now (been in business for 6 years) so I'm hoping it'll look attractive enough to someone with the right money to spend..
Thanks for your replies

[jont]

Have you considered selling to that other site the erm "borrowed" your logo?

[TraceyHand]

Have you considered selling to that other site the erm "borrowed" your logo?

oddly enough, yes, I did consider it

Except we didn't exactly resolve the situation on "speaking" terms so I'll hold fire with the offer for now

[pinbrook]

Have you considered selling to that other site the erm "borrowed" your logo?

Hah, I was going to suggest that!

X times turnover is normal the guideline, you just have to negotiate X

[dscontroller]

Tracey,

Have sent you a private email.

David

[chris ashdown]

Tracey

Just being nosy and wondering how things are going, have you managed to sell yet or had any offers?

[TraceyHand]

Sorry to have gone quiet on this.

I've had several people approach me about this but I'm still not in a position to come back to them with figures.
Doesn't help being school holidays with kids home/little time to work/going gradually insane!
Typically, I'm completely snowed under with orders (good thing, I know but, ya know!!) and I just can't get a long enough look at the books to finish them off! It's frustrating.

I'll keep the forum posted.