Business ideas

Also, settle any outstanding problems before leaving. “You should aim to get any contentious or disturbing issues resolved before a sale,” he said.

“Buyers feel extremely uncomfortable with outstanding legal actions or uncertain ownership of assets. They will always take a worst-case scenario and discount their offer accordingly.”

And when it comes to negotiations, never name your price.

“Set yourself a top target and lowest walk-away price, but never name your price to a potential buyer,” said Neary. “Instead, demand that they give you their best offer.”

It could turn out to be more than you had imagined. Michael and Maureen Killeen set up Laois Hire in 1992. Though they had no plans to sell, they were approached recently by a bank that had several clients interested in buying them out.

The company, which has an annual turnover of more than €6m, ultimately sold to HSS, a European multinational, for a deal worth about €7m.

As part of the deal, the couple stayed on as managing director and financial controller respectively.

“Even if you have no intention of selling, it’s important that you keep your business in tight shape, with good staff, so that, if opportunity comes knocking, as it did with us, you’re ready to take advantage of it,” said Michael Killeen.

“Also, if you have a fast growing business, you have to recognise that the time to sell is when things are on the up, not when they have reached a plateau.

“Take expert legal and financial advice and have the right attitude.

“Throughout the sales process you have got to keep your eye on the ball so that, if the deal doesn’t work out, the business hasn’t suffered,” he said.

Guidance on legal obligations to employees in the event of a sale is available from the Small Firms Association at www.sfa.ie. The government website www.basis.ie also has legal information relating to company sales and business transfers.

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