Are you planning to sell your business? If yes, then why not maximise its value. It is sensible to spend some time getting your business into shape prior to the sale. This could include cutting costs, reducing debts and reducing excess stock to get your finances into good order. Potential buyers are also likely to require detailed financial information, including audited accounts and forecasts before they will consider making an offer. You can help make the whole sales process smoother by preparing this information in advance.

So how do you do it? There are several methods of valuing your business. It is advisable to seek specialist help from your accountant, solicitor or from a corporate adviser. They will be able to advise you on an appropriate valuation method and help you get a realistic valuation. They will also be able to help you identify and market your business to potential buyers.

It is also important to sell your business at the right time as it has a significant impact on the price you get for your business. If possible, plan ahead so that you can pick the best moment rather than being rushed into a quick sale. For example, if you plan to retire in five years' time, it's a good idea to start planning the sale of your business now.

The general state of the economy - and your sector in particular - can have an effect. So aim to sell when profits are increasing and look likely to grow further. Consider the impact of sales cycles or seasonal fluctuations in your business - you might have fuller order books at a particular time of year, for example.

Planning well in advance also allows you to groom other aspects of your operations to ensure your business is as attractive to buyers as possible. For example, you can ensure that equipment is well-maintained, key contracts are in order, and that you’re complying with all legislation.

Also bear in mind the detailed timing of a sale may also depend on the tax consequences and any forthcoming changes to tax rules.