Helping a friend
Discussion
Morning all
Apologies if this is not the correct area for this question, but I wondered if someone could provide some advice on the following.
A good friend of mine is selling his "Automotive" business in the south of Spain and is a huge operation. He has built it for over 15 year and has now decided that he would like to move on. So would anyone have any words of wisdom on how he should go about this?
There is a website that has been produced that has all the details included in the sale, but I'm not sure if I can show that on this forum.
Any help would be appreciated, thanks.
Apologies if this is not the correct area for this question, but I wondered if someone could provide some advice on the following.
A good friend of mine is selling his "Automotive" business in the south of Spain and is a huge operation. He has built it for over 15 year and has now decided that he would like to move on. So would anyone have any words of wisdom on how he should go about this?
There is a website that has been produced that has all the details included in the sale, but I'm not sure if I can show that on this forum.
Any help would be appreciated, thanks.
I'd start by mentioning his intentions to his Accountant and Solicitor as they may well have other clients that might be interested and entering into negotiations with a party sourced through a mutual network can be more fluid and beneficial than other sources. Equally, there is nothing wrong in approaching the owners of companies he currently works with where he sees a potential fit.
Reality check is also necessary.
If he's looking to hand the keys and books over and walk away in one go, he's likely to get less than a gradual tapering of ownership over time.
And a general rule I've found to hold true is that both parties feel like they've been ripped off: the seller that he's sold for too little and buyer that they've paid too much. I think that's just human nature though.
And talking of the human factor, something that is often overlooked is the impact of selling something that you've given birth to, nurtured and grown. I had a client some years back that sold his business for £30m but ended up in a terrible state of depression which to anyone without £30m seems unfathomable. Counselling helped but he certainly lost a lot of his 'spark' because he had nothing to do.
Reality check is also necessary.
If he's looking to hand the keys and books over and walk away in one go, he's likely to get less than a gradual tapering of ownership over time.
And a general rule I've found to hold true is that both parties feel like they've been ripped off: the seller that he's sold for too little and buyer that they've paid too much. I think that's just human nature though.
And talking of the human factor, something that is often overlooked is the impact of selling something that you've given birth to, nurtured and grown. I had a client some years back that sold his business for £30m but ended up in a terrible state of depression which to anyone without £30m seems unfathomable. Counselling helped but he certainly lost a lot of his 'spark' because he had nothing to do.
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