Getting The Best Price For Your Franchise
Most franchisors think about selling their business at some time and for most, the sale is likely to be the most important, valuable and rewarding financial transaction they undertake in their lifetime. When you consider the amount of time and effort you have put into building your business, isn’t it worth devoting a relatively small amount of effort in comparison, to making sure you get the best possible price when you sell it?
We have developed a process designed to help you do just that. It is a road map which will enable you to maximise your exit value and enjoy the fruits of your labour.
See our free guide How to Grow and Sell a Franchise Business.
Start Building The Value of Your Business Now
As with so many things in business, the key to achieving your goal in this area is preparation. Whatever you do, do not make the mistake of waiting until you are seeking an immediate sale, before you start thinking about your business from a buyer’s point of view.
A good buyer for your business will look beyond the superficial financial picture, even if it does show growth in sales and profits. During their due diligence they will want to see that the business is “Clean”, strong in the Nine Drivers of Equity Value and that the key ingredients for continued profitable expansion are in place.
Contact us now to find out more about our unique franchisor benchmarking process. It is never too early to prepare properly for what may be the most important financial transaction of your life.
Selling Your Business
Franchisor businesses can appeal to a variety of buyers – an existing franchisor that wants to leverage its franchise knowledge base and overheads to expand, someone from within your sector that wants to expand their geographical or market reach or even one of the growing number of investors that view a business based on a secure flow of franchise fees as an attractive investment. However, just as our preparation process recognises the unique features of a franchisor business, so should the sale process.
For this reason, we have chosen to work with Franchise Resales, the UK’s recognised specialists in franchise business disposals. Our close relationship with Derrick Simpson and his team enables us to work together to ensure that the preparation and sale process is seamless and that you have two of UK franchising’s top professional firms working for you to achieve your exit goals.
The overall timescales for preparation and sale are down to you. Some business owners plan years ahead for the time when they want to sell and take a long, gradual approach to making sure their business is as attractive as it can be for would-be buyers.
Some business owners take the decision to sell more instinctively and are looking for a quicker outcome. In this case, the preparation process is about carrying out an evaluation and identifying the short term wins that will enhance the value of the business quickly. The timescale for the overall process here is likely to be months rather than years.
Surprisingly, those businesses that come to the market requiring an instant sale with no preparation may in fact take longer to dispose of. The lack of preparation for sale is often obvious, due diligence highlights weak areas and the business stands out as a poor risk for buyers.
Our benchmarking process is about improving sales, profit, systems, IP and operations as a part of making a business more saleable, so it is relevant to your business at any point in its life. However, starting the preparation process at least one year prior to the business coming to market can have a real impact on its saleability and the price achieved.
Contact us now for an initial confidential chat about how we can help you maximise your exit outcome.