Planning to retire - Best place to sell my UK business

garytryingtosave123

Hi All,

I am looking to retire and sell off my business, I have been looking through hundreds of websites, brokers and the possibility of a management buy-in.

Has anyone on here had the experience of selling your business and if so what route did you take?

I have read the statistics and only 7% of businesses sell is a scary prospect as I was relying on the sale of the business to fund my retirement.

I really don't want to have to work until I drop dead!!!

Any advice would be welcomed.

jonnygee2

What kind of business is it? How big is it, and at what kind of value is it likely to sell at?

Also - realistically how attached to it are you? And how comfortable are you with the idea of a large company or complete strangers taking over its management?

garytryingtosave123

A manufacturing business, Turnover £5m, sell around £2-3m.

I am attached but recently became a grandfather and want to spend more time with family.

mluton

Have you approached any of your customers and put the feelers out ?

Linton

mluton wrote: »

Have you approached any of your customers and put the feelers out ?

and competitors.

jonnygee2

Well, a management buyout often gives people the most peace of mind, if they still care about the company, and is probably also the easiest to facilitate. How feasible is it in your case?

I know someone who has recently negotiated out of a business on the basis of getting a lump sum, and a regular income, and staying on as a consultant for roughly 1 day per month for a few years (the businesses' request). Could something like that work? I believe the process was relatively painless to all parties, compared to (say) an external sale

garytryingtosave123

I have spoken with the management team but no one seems to want to take the "leadership role".

I have also spoken with a company that acquires businesses, they seem keen. Just waiting on their NDA.

@Jonnygee2 your scenario would be perfect for me.

sheslookinhot

Sounds like your management team are too comfortable in their roles. Maybe they are too old/ near retirement.
Turnover is £5M, why do you think it would sell at £2-3M ? What profit have you had over last 3-5 years ? What investment had you planned/costed over the next 5 years ?

mark5

I’ve always felt that anything will sell at the right price, there’s been a newsagents for sale near my house for years and my initial thoughts were it’s expensive and 2-3 years on it’s still for sale.

If you were buying your business with arguably the biggest asset leaving with the purchase then what would you honestly pay for it?

Could you bring in someone to fill your position and continue to take a wage while you step back ?

Thrugelmir

Thought of employing a Managing Director?

garytryingtosave123

sheslookinhot wrote: »

Sounds like your management team are too comfortable in their roles. Maybe they are too old/ near retirement.
Turnover is £5M, why do you think it would sell at £2-3M ? What profit have you had over last 3-5 years ? What investment had you planned/costed over the next 5 years ?

Without going into too much detail on here, the building is freehold and multiple assets along with the Ebitda of £1.2m. I'm not being greedy but could fetch a lot more.