Selling up could be the fastest way to grow your business
15 March 2016
It may sound counter-intuitive, but selling a business could help secure the best future for entrepreneurs and the companies they have built. BCMS CEO Steve Dally describes the basics of a company sale, and analyses what many owner-managers do next.
Change has always been a big part of growing businesses. Many of today’s most successful, best-known businesses started up as something rather different. Would Amazon be so mighty if founder Jeff Bezos had stuck to selling books? What would Virgin look like if it was still just a record label? Could Google offer so many services if they hadn’t bought 180 businesses?
Specialist corporate finance advisor BCMS speaks to thousands of SME owners and entrepreneurs every year, and many are facing dilemmas. They know their business needs to grow, but they are not sure how to change course to maximise potential.
Some are idealists who enjoy the thrill of starting a company and bringing their ideas to life, but are less skilled at managing the growth cycle. Others get frustrated that they don’t have access to the required investment to take their business to the next level. Either way, if they’re behind the curve, it’s only a matter of time before competitors catch up.
In this revealing interview with The Business Reporter, BCMS CEO Steve Dally explains how selling a business can secure that investment, bring fresh impetus and new ideas, help key staff develop – and create genuine business transformation.
And with only a quarter of modern SME owners actually retiring post-sale, he demonstrates how this cycle of buying and selling businesses is vital for wider economic growth.
“Every business is different – but it will get to a point in time when it has plateaued, and needs investment to grow,” says Dally. “Transforming your business is about identifying the right solution, at the right time.”
With SME business sales up over 20% in the last 12 months, acquirers and investors are actively targeting strong businesses. It’s clearly a good time for business owners to explore their options.
With over 500 successful company sales in the past decade alone, BCMS is a specialist advisor to shareholders of privately owned businesses. www.bcms.co.uk/business