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When is it the right time to put your company on the market?

When is it the right time to put your company on the market?
Thursday, January 24, 2019

For everything, there is always an end. But that’s sometimes the end is a very positive thing. You may have put your heart and soul into building a profitable and sustainable business over many years which has provided you with professional and personal satisfaction. The fact that it has helped to pay for you and your family (and helped your employees do the same) is even better.

However, at one point and probably for a variety of different reasons, you’ll likely want out. Either you’ll want to close the business (ask us about Members’ Voluntary Liquidations for the most efficient way to extract cash) or you’ll want to sell up (ask us about Entrepreneurs’ Relief on Capital Gains Tax).

We’ve helped many of our clients either close up or sell up in the last few years and, below, we list the five signs that the love affair between you and your business may have ended.

You can’t see a way to sustain growth

According to our own experience and the experience of our clients, the journey from start up to £250,000 turnover to £1,000,000 turnover and beyond is exciting and challenging. You work for years and years carefully managing your cashflow and, where suitable, taking on debt to grow your company and it seems like, at every stage, you’ve always known what you were doing and how you were going to get there.

Many entrepreneurs love setting up businesses and others love growing them. Without outside help, many businesspeople reach a roadblock and they just can’t see a way to continue expanding. And it’s that lack of vision that frustrates them.

You want to release capital more than you want to have it tied up

Many business people’s personal assets and finances are closely tied up to their company’s assets and finances. You may have a business loan secured on your primary residential property or you may feel uncomfortable with personal guarantees you have given to factoring companies, your landlord, and so on.

When a business is sold, in most cases, the debts the business has on it (and their shareholders) must be settled by the new owners. Although the cost of surrendering your loans and other encumbrances will be taken off the value of the business when you take it to market, the peace of mind you enjoy as a result of your life and your assets being untied from the company may be more than worth the reduction in price.

The market is changing

Markets change all the time because of shifts in consumer sentiment, alterations to the laws that govern, and additional tax burdens. Sometimes the decline might be gradual and other times steep. Many restaurants, for example, have seen the viability of their business models deteriorate through a combination of shifts in consumer sentiment (squeezed wages among customers), changes in the law (rises in the levels of the National Minimum Wage and National Living Wage), and additional tax burdens (the revaluation of business rates in 2018).

If the fundamentals underpinning your business mean that, as a standalone company, you don’t feel the business is worth running anymore, a chain operator or a company hungry for expansion may see real potential in what you’ve created.

You are no longer comfortable with the size or complexity of your business

Many business owners feel that the joy and enthusiasm they had in the early days of business, particularly through closeness with their staff members, disappear as the size of their company grows and the complexity involved in running their company.

Life is, ultimately, too short to spend 40-60 hours a week doing something you don’t feel comfortable with anymore. If you walk through your premises and you worry about the cost of meeting the wage bill at the end of the month more than you get excited by the opportunities to profit and to grow that those staff may present you with, it’s probably better to look at an exit.

Your fire and passion have gone

Many full-time employees switch jobs every few years to give them a better chance to earn more money and to increase their skill sets. Every time they job hop, it refreshes them personally and reinvigorates their career.

If you’ve been running a business for 10 years, for example, you may be tired and you may desire a new challenge. It’s normal to have ups and downs, good times and bad, when you’re a company director. If it’s been a long time since you’ve felt good about your business and your involvement in it, it may be time to call it a day

The next steps

Closing or selling your business is something that will fundamentally change your life and it’s not a decision that anyone should take without the maximum consideration and due diligence. Speak to your Panthera accountant about the options open to you – we’re a phone call or email away. To find out more, please call 01235 768 561 or email enquiries@pantheraaccounting.com.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

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