The end game

When it comes to selling your business it pays to do your homework first, says NHF/NBF chief executive Hilary Hall.

“Make sure you understand what’s involved and what steps you need to take to achieve a successful sale at a good price,” advised Hilary. “It’s also good practice to have a sound exit strategy in place even if you are not planning on selling.”

This means you will be ready to sell at short notice if this becomes necessary.

Get expert advice

“We would strongly advise using a reputable business broker such as our Trade Member ETS Corporate (nhf.info/ETS/) when selling your business,” Hilary added. “Brokers will look after your sale from start to finish, so you can continue to concentrate on running your business in the meantime. In addition, reputable business brokers are usually paid on results, so will always do their utmost to get you the best deal.”

Valuing your business

You will need an objective professional valuation of your salon. This is because you will have a strong emotional attachment to your business and so may overvalue it. Alternatively, you may not realise how much it has increased in value over the years. You could be pleasantly surprised!

As part of the valuation process you must have accurate profit figures for the past three years and an expert valuation of all your assets.

Sell, sell, sell

“Once your salon business is on the market, you will need to prevent staff and clients finding out if possible,” said Hilary. “This is because your business can become vulnerable if the news gets out. Other salons may try to poach your staff and clients might start to go elsewhere. If this happens, the sale value of your business may go down.

“All potential buyers must be asked to sign a non-disclosure agreement before being allowed to see the sales details and financial information about your business.”

Supporting employees

When the sale has been finalised, you’ll want to do all you can to support your staff through what may be a very unsettling time for them.

“The new owner may even be considering redundancies,” said Hilary. “That’s why our 24/7 HR and commercial legal helpline (nhf.info/legal-advice), which is free to NHF/NBF Members, means you’ll never be alone if things get tricky when selling your business.”

Capital gains tax

Finally, when your sale has gone through, you will almost certainly have to pay capital gains tax. A financial expert will be able to advise on this and keep your capital gains tax bill as low as possible. Find out more about how to find an accountant at nhf.info/accountancy.

NHF/NBF Members can download a free guide to selling your business at nhf.info/selling-guide

The NHF/NBF offers a wide range of business support services to Members including legal, employment and financial advice as well as valuable discounts on business essentials including insurance.

Find out more at nhf.info

**Join the NHF/NBF before the end of March 2019 and quote SMM25 to get £25 off your membership fee.**