…or perhaps not?!
Maybe you’ve never even thought about selling your business? After all, you acquired your franchise to provide an interesting, secure and rewarding lifestyle for yourself and your family, right?!
Well, according to the bfa/NatWest 2018 Franchise Survey, you are not alone, a significant number of franchisees give little or no thought to their exit plan. But there are very good reasons for you as a business owner to consider your end goal.
As well as earning a good living from your business you will want to maximise the sale value and preparation is key to that.
There are three main reasons franchisees consider selling up:
- You might want to take early retirement
- You might want to move into a different business opportunity/sector
- Your personal circumstances have changed
Whatever the reason you will certainly want to be in control of the situation
There are several key stages in the process of selling your franchise
So let’s have a look at them:
- Preparing for a sale: You will want to ensure your business (and you) are ready for the sale process. You will also need to identify any areas of due diligence that a buyer or their advisor may find that concerns them, and leads to them wanting a reduction in your asking price.
- Valuing your business: Sellers tend to overvalue; buyers tend to undervalue! An objective well thought out valuation is key to avoiding a protracted process.
- Finding a buyer: Internal sale to the franchisor or an existing franchisee, going to the market, confidential or public sale? It can be daunting choosing which option is right for you.
- Negotiating the deal: Agreeing the price, type of sale, and specific terms in the Sale and Purchase Agreement.
- Making it happen: Getting the legalities right and ensuring as smooth a transition as possible, looking after your staff and your customers in the final handover phase
There’s an awful lot to think about and do, and that’s where we can help – with years of experience in the team of successful sales of franchise businesses we are confident that we can make the journey a lot easier. Want to find out more? Simply get in touch!
