Selling your Business when Things get Tough?
As most people will realise, Comet went into administration at the beginning of November. With around 6,000 staff and 243 stores this is undoubtedly a major business failure in the UK.
One message that comes out here and should provide a lesson for us all is that once word gets out about business problems, things can start to compound. In comets instance, lower than forecast sales combined with their suppliers declining credit to the company.
Now whilst Comet is a large business, there are lessons to be learnt for all businesses no matter what size. And the message here is that we need to ensure that if a business is struggling, then the sooner the issues are addressed the better. In Comets instance, it is rumoured that there were possible purchasers a while ago but now the best that can be hoped for is a distressed sale.
Obviously working with your accountant you can decide which way to go with your business if storm clouds are hovering and clearly selling your business is one of the options to consider.
Many people think that it is difficult to sell a business with difficulties but this is not always the case. Do not forget that competitors with infrastructures in place could be interested if your business has something it needs for instance a prominent high street position, a niche product etc.
If you want a confidential chat about any issues you may be experiencing and selling the business is an option then please contact us. The initial consultation is free and it is always better to have all the options at your fingertips.