Sell my Electricians business
When selling an electricians business, it is important to prepare the business well in advance so that it is operating at its optimal level when presented to the market. This is a time-consuming process, but one that should not be overlooked if you are to obtain the highest value possible.
Taking time to plan the sale allows you to expand your options, and address the sector-specific challenges that you face. Selling My Business specialise in the sale of electricians businesses, and can provide professional guidance at every stage of the selling process.
What do you need to consider when selling your electricians business?
- Confidentiality of process
You do not want competitors to know that you are selling your business. A professionally drawn-up confidentiality agreement reduces the risk of sensitive business information falling into competitors’ hands, and should be issued to interested parties prior to sending out the Information Memorandum.
- Sourcing the right buyers
Marketing to potential buyers who you know are serious about making a purchase, and who have the financial capability, can be difficult without professional insight. We can use our network of pre-approved buyers, aligning your goals and objectives for the sale with potential purchasers who meet the criteria.
- Obtaining a reliable valuation
Having a long record of successful business sales, we will ensure your electricians business is valued fairly, also taking into account the value of your brand reputation and goodwill that has been built up over the years.
- Tax-efficiency
Extracting the optimal value of your business in a tax-efficient manner is a crucial part of your future plans, and to your long-term financial security. You may be able to receive payment in instalments, for example, rather than as a large lump sum.
How can you make your electricians business attractive to potential buyers?
You can make sure your business is attractive to prospective purchasers in a number of ways, including ensuring that:
- Internal processes, such as ordering and invoicing, are running smoothly and your business is at its most efficient
- Your accounts are up-to-date, and contain no ambiguous transactions – the due diligence process will highlight any issues in this respect
- You have minimal bad debts on the books
- Your business credit score is as high as possible
There are also specific issues faced by businesses in your sector that could potentially affect the price finally achieved from the sale. These include:
Skills shortage
The shortage of skilled electricians in the UK might restrict the rate at which your business can grow over the short-term, once a buyer has made their purchase. The government has also introduced a new apprenticeship scheme which requires greater administrative input from businesses, and payment of an ‘apprenticeship levy’ once a certain level of turnover is reached.
Regulatory requirements
Given the nature of your work, your business is subject to a number of regulatory requirements, including Building Regulations – Part P. Health and safety at work is also a major influence on your day-to-day operations, particularly if you are an employer. Any history of infringement or non-compliance could affect the price a purchaser is willing to pay.
Ongoing learning - complex building systems
High automation now often requires electricians who work in commercial buildings to deal with complex and sophisticated centralised control systems, involving computer and networking equipment.
For more information on how to sell your electrician’s business, call one of our experts at Selling My Business. We will help you plan your sale effectively, and ensure the value is extracted in the most tax-efficient manner.
