How to Sell Your English Language School Business

Issues 6, 7, and 8 are a linked series describing the 12 Critical Steps to a successful sale of your Language School business.

James will also share what he got right when he sold Pilgrims Language & Teacher Training Courses of Canterbury and also, the mistakes he made!

The First 4 Critical Steps on the Way to a Successful Sale

• Why are you selling?
• How much of the business are you selling?
  • All?
  • Partial?
  • Are you 100% sure?
• What exactly do you want from the Sale?
  • All Cash?
  • Will you accept an Earn Out?
  • How much of both?
  • By when do you want to have sold?
  • Do you want some continued involvement in the business, or a complete exit?
• Establish a minimum price below which you will not/cannot sell.
• What are you going to do next?
• Complete this sentence:
  I want to sell my Language School business because...
  so that I can...

The more you know what you want and why (i.e., Step 1), the less stressful the process will be.

Know Yourself...

• Do your homework and be realistic.
• Take advice.
• Is there an industry standard price? How is that calculated?
• Can you beat it? On what basis?
• What have your competitors sold for in the last 3 years?
• When is the right time of year to sell?
• Get some arm’s length valuations of your business and the likely sale timetables as a guide.
• Start to build a list of all those people whom you think might be interested in buying your business and keep adding to it.

NB: In the end, a successful sale comes down to a Willing Buyer and a Willing Seller and, can you get what you want and need?

Get 100% agreement on your decision to sell from all the Shareholders and your Family.

James’ Mistakes on Steps 1-4...

• I didn’t really know why I decided to sell Pilgrims. I knew I was tired and ‘had had enough’; and the appeal of doing all those things you dream of doing when you stop work was very attractive after 30 years of running the business.
• I sold to the first person who approached me with sufficient cash; and offered me an immediate and total exit.
• I did no homework as per my Step 3. Lots of people have since told me I sold Pilgrims far too cheaply, but I got more than enough for my needs.
• I failed to get all the shareholders' agreement to sell. This has cost the loss of a very long-term friend. Very Sad.

Critical Steps 5-8 will follow in Issue 7 in 10 days time on 19 April.

For further information, please contact james@jamesdixey.co.uk.

Visit our website: www.jamesdixey.co.uk

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