I get asked this question a lot by business owners. And it’s a very good question.

Some businesses are very dependent on the people that run them. Professional services businesses like my own for example, rely heavily on the knowledge and expertise that the owner has.

Personal recommendations are often what creates the pipeline of work and for that reason the people coming the way of the business, usually expect that person to be around to deliver that service.

Businesses are made up of many different facets though, so it is always worth exploring what might be of interest within your business to a potential buyer.

Some buyers, especially where there is repeat work, would be very interested in your customer database. That may apply to accountants and financial advisers, who generally have long term relationships with their clients.

You may have created other systems and processes that create a framework which a buyer might want to incorporate into an existing business to improve efficiencies and create scale.

There might be IT systems or software that a buyer would benefit from.

Other assets, such as stock, equipment, premises, which are also attractive.

I have been involved in deals where parties acquired a loss-making business to incorporate it into a group in a tax efficient structure.

The next question I get asked is what is my business worth. My answer may sound a little patronising but it’s the reality i.e. whatever someone is prepared to pay for it?

If you are interested in exploring whether you can sell your business, stay tuned for our next article where we will give you some ideas about how you can go about this.