How outsourcing can support your business to enable a smooth and efficient sale

18 July 2022 / Insight posted in Article

If you’re thinking of selling your business, there’s a lot to consider and plenty to do. To simplify the process and give you peace of mind, you might want to consider outsourcing. It can help you get everything in the best possible shape – from paperwork to processes – to help you achieve the best possible outcome.

Not sure about what’s involved when it comes to selling, or concerned about the readiness of your business and financial systems? Read more to find out how outsourcing can help.

Valuable management information

The first thing a potential buyer will want to see is your management information. Owners also need good management information to help run their business, track performance and support decision making. Your outsourcing adviser can set you up with the right systems and KPIs so that you’re able to report correctly and quickly on what really matters, putting the right information at your fingertips.

When preparing to sell, it can be a good idea to create two separate management packs based on the same underlying information. One that goes out to potential buyers that is more high level, demonstrating that your business is in good shape and incorporating scenario planning for how the business would operate with investment. Plus another version that’s fully detailed and used by internal management as they continue to run the business. Your outsourcing adviser can draw out the right information and insights for each of your audiences, making your management information work harder and getting you the sale you want.

The right details and processes

One of the greatest benefits of outsourcing is having the confidence that everything is being done in the right way and at the right time. You can go into the sale process knowing the correct details have been provided and you’re not going to face a renegotiation over valuation, or loss of a buyer because inaccurate information was provided.

If you’re not on a cloud-based or automated finance system, your outsourcing adviser can help you put in place the best accounting and ERP systems for your business. And they can also help you establish improved and more automated processes. Not only will this make your business a more attractive purchase, but it will also help you with your day-to-day management and planning while you’re getting ready.

Ready for due diligence

There’s such a huge volume of information required for the due diligence process when you’re selling a business. Being able to access your financial and tax details quickly and efficiently – ideally having it prepared in advance – both makes the process more efficient and tells your buyer that your business is being run well.

Having an outsourcing adviser that understands what’s going to be needed by lawyers and what questions are likely to be asked means you’ll be ahead of the game with no last-minute stresses.

Smart business decisions

Once your outsourcing adviser knows about your intention to sell and the likely timing, their focus should be preparing the business for sale. There will be many day-to-day decisions that can have impacts later, especially for tax, so getting the right advice through this period can save time and money. After all, making smart business decisions now will maximise your position when you come to sell.

Seamless transition

Having outsourced services can make a business more attractive to buyers because it simplifies their staffing decisions. Often when a business is acquired by another, they look to merge the finance functions, and redundancies are common. Having an outsourced finance function removes that problem because the service can easily be wound down – and buyers who aren’t merging functions can continue with the outsourcing service if they choose.

Get in touch

Wherever you are on your journey to selling your business, speak to one of our outsourcing experts to find out how we can help. One to two years before a sale is the ideal time to start the process, but we can help you achieve the best outcome whenever we get involved.