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Want to sell your business? What to consider

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In the lifespan of a business, circumstances may arise that necessitate offloading part of the business, or all of it.

These circumstances include the admission of new partners, capital raising or total divestment from the business.

If not properly managed, though, the process can lead to undesirable outcomes, such as disputes and a loss of time and money.

Selling a business doesn’t need to be chaotic. However, it’s worth noting that selling a business can be a difficult task and take months to conclude. Here are the key components to keep in mind.

1. Type of buy-out

When considering the sale of a business, a seller has a variety of transaction options to consider.

The types of buyers generally fall into three categories.

There’s the employee buy-out, which allows full-time employees to participate in the ownership of the company.

There’s the financial buyer, which makes up a large part of the buyer pool in low and middle markets. Financial buyers often look for businesses they can buy with debt financing for a fraction of the price.

Finally, strategic buyers expect synergies with their other businesses and buy companies that work within their future plans.

2. Valuing the business

The transaction value of a business is usually the most negotiated aspect when it comes to striking a sale deal.

The seller of the business needs to ensure that the value that’s been assigned is a fair representation. The proper valuation of a business should be determined by a qualified professional.

An appropriate valuation should take into consideration features like goodwill on the business, any special licenses its carrying, physical and intellectual properties present, cash-generating ability, and the industry the business is in.

The valuation should be detailed as it forms a large part of the negotiations.

And in engaging a valuation expert, you want to make sure they’re available to defend the value they arrive at.

3. Transaction advice

The sales process is an intricate one. One of the dilemmas faced by business owners is whether they’ll handle the transaction internally or hire external advisors.

Transaction advisors, although they add costs to the process, are critical because they add value to the transaction and prevent possible missteps.

A gazetted and experienced transaction advisor is also critical in lining up potential buyers, and can prove invaluable during the sale process.

4. Not all buyers are good buyers

Before the process begins and with the help of a transaction advisor, set the minimum attributes you expect of a buyer.

These attributes will be critical in evaluating the buyers, and include factors like technical expertise, financial capacity, future planning and, in the case of a partial sale, compatibility.

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5. Prepare due diligence information

Before anyone buys your business, they’ll need to do their due diligence on it. Therefore, before you start the selling process, with the assistance of a transaction advisor, ensure all the information a buyer would need is readily available.

This helps ensure a smooth process. A transaction advisor will also use the information in these documents to execute their mandate.

The information that’s normally required includes financial performance records (which should be audited by a qualified firm), proof of ownership (Certificate of Incorporation), business licences, permits, financial obligations like loan documentation, lease contracts, details of all chargebacks or ‘owner’s salary’, annual returns and selling mandates.

These documents can be stored in a physical data room or in cloud-based storage.

6. Tax events

In Kenya, as in many other jurisdictions, the sale and acquisition of businesses has tax aspects that have to be adhered to.

Depending on the approach adopted, there are different tax outcomes. This is something you’d need to think about as the current tax position of the business has an effect on its value and the chances of the transaction succeeding.

7. The transition

With many SMEs, the owner’s job is not done once the business is sold – often, the new buyer will want to be walked through the business and become familiar with its operations and key clients.

There are two ways to manage this process. One, the owner can stay on as a business worker (with remuneration); second, the owner can draw a salary as an independent business consultant.

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Singer speaks after attacking lover at WCB signee Zuchu’s star-studded concert

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By Standard Entertainment



56 minutes ago

Controversial singer Gigy Money turned WCB signee Zuchu’s concert into a fight club, hurling shoes at her lover.

On 18 July, there was fanfare at the Mlimani City Hall in Dar es Salaam as WCB signee Zuchu held a thanksgiving concert months after her debut EP, I Am Zuchu. The event dubbed ‘Ahsante Nashukuru’ mainly featured performances by artistes from the WCB stable and attracted the whos-who in the Tanzanian entertainment and political scenes. 

READ ALSO: I’m not behind Diamond, Tanasha split- WCB’s Zuchu sets record straight

However, singer Gigy Money who also performed made the headlines for the wrong reasons after getting into a scuffle with her lover during the much-publicised concert.

READ ALSO: I was bewitched by a friend – Gigy Money

Peaceful arrival, later chaos

Moments earlier, Gigy and her Nigerian man were seen arriving arm in arm at the event whose highlight featured Zuchu receiving a brand new car from WCB head honcho Diamond Platnumz. Donning matching outfits, the couple was spotted on the red carpet as the paparazzi scrambled to capture the moment.  However, all hell breaks loose later and viral videos depict the visibly angered Nigerian arguing with a bouncer at the entrance. After a tense confrontation, Gigy’s man is seen being led by the screaming bouncer towards the exit. Shortly after, a similarly irritated Gigy emerges and follows the pair.

“Gigy! Wewe Gigy wewe!” a woman in the background is heard dissuading the singer from pursuing them but the singer pays no heed and heads for the pair.

“You want to beat me?” the boyfriend is heard asking an approaching Gigy as the bouncer acts as a barrier between them. The bouncer manages to steer the incensed man towards the exit as Gigy follows behind, hurling obscenities.

READ ALSO: I will get a baby with your eldest son – Gigy Money warns Zari

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At some point, a barefoot Gigy turns into a sprint before throwing one of her shoes which hits the man who then responds with an insult. Another bouncer finally intervenes and the two are separated. Gigy then asks for her vehicle so she can head home before warning the press against sharing videos of the incident.

Addresses incident

Though the cause of their tiff is still unknown Gigy later made reference to the shocking incident in a social media post, hinting that alcohol had a part to play in the fracas.  In another post, Gigy shared a photo alongside her estranged lover writing: “My mad man looked handsome before his demons arose and mine arose too.”

‘Running over Ali Kiba’

Gigy is not new controversy and recently said she’d run over her ex, singer Ali Kiba for breaking her heart.

“I will knock all of them down, I mean I will kill them. In fact, I will flatten them like chapatis. The first person I will knock down and kill is Ali Kiba.  Actually, I don’t need a weak car, I need a Fuso so that when I knock him down I will be sure he doesn’t survive,” Gigy told Ayo TV.

READ ALSO: Gigy Money under fire for dirty-dancing with married singer

Dating Kiba brothers

Gigy had in the past admitted to dating both Ali Kiba and his younger brother, Abdu Kiba. She solely laid the blame on Chekecha singer for pursuing her despite knowing that she’d been with his younger brother. Abdu expressed being heartbroken after learning the two had a fling, prompting him to marry.

“I was very hurt on hearing that Ali was dating Gigy Money because I dated her first before she became famous. But it’s alleged that Ali didn’t know. It hurt me for a while till when I married,” said Abdu.

 

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Defunct Nairobi County Council  Nurses Go On Strike, Citing Discrimination By The Government

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Defunct Nairobi County Council  Nurses Go On Strike, Citing Discrimination By The Government

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Why Jahmby Kokai is happy her TV anchor dream never came true

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By Diana Anyango



37 minutes ago

Jahmby Koikai is glad her dream of being a TV anchor never came true.

Popular media personality Jahmby Koikai narrated how her first attempt at auditioning as a TV host backfired and she was sent home on the first day of the audition. Reliving her prime days, Jahmby narrated how she was determined to follow her dream of becoming a news anchor after completing her degree.

“There was a reality show that was running on one major TV channel here in Kenya, searching for the next top news anchor. I’ve always had the knack for news. At the time, I was working at Metro FM. Walked to my boss and asked him if he was ok with me participating in this competition. He agreed to it.

“Auditions were at Film Studios. The queue stretched all the way to the showground. I was at the back kabisa. Imagine 300 people before you. Then we got the briefing paper and it indicated, ‘no persons with experience in a media house allowed to participate in this audition’. Mimi Jahmby Koikai, nirudi home after watu 300 kukuwa mbele yangu?” she posed.

READ ALSO: Jahmby Koikai back in Kenya after a year of treatment abroad

According to the endometriosis survivor, she went ahead to audition for the position despite the warning and was the first contestant to be sent packing.

“So I stayed in line until I got to the audition room. The judges were a few people I was in campus with. I felt a wave of despair. Like I’m here auditioning, yet my classmates will be judging me? I did my thing and I was considered. We got into the house and we were assigned to different groups. I was the group leader and we won the challenge. Later that evening, we were driven back to Film Studios for a briefing. The presenter of the show said some of us have to go home.

“My name was called out first amongst other great people. We were dropped home. I cried. It felt like I’d lost such a great opportunity. My mom and late grandma were so sad cos they loved to watch me do the news,” she narrated.

READ ALSO: Why I’m walking around with a mask- Jahmby Koikai

Second audition

Later, Jahmby auditioned for another TV opportunity only to miss out as well.

“Then came another opportunity over 10 years ago, I saw a TV ad and decided to apply for the news anchor position. I didn’t get the job.”

However, due to endometriosis, Jahmby was forced to put her dreams on hold and concentrate on getting better. According to her, it is as though God had better plans for her and is grateful to not have gotten the jobs.

“I battled severe endometriosis in silence for over 19 years. I think of how engaging the newsroom is and I’m grateful I wasn’t in that space. I’d have utilized all my sick-leaves and off-days and just declared redundant.”

 

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There was a reality show that was running on one major TV channel here in Kenya, searching for the next top news anchor. I’ve always had the knack for news. At the time, I was working at Metro Fm. Walked to my boss and asked him if he was ok with me participating in this competition. He agreed to it. Auditions were at Film Studios. The queue stretched all the way to the showground. I was at the back kabisa. Imagine 300 people before you. Then we got the briefing paper and it indicated, ‘no persons with experience in a media house allowed to participate in this audition’. Mimi Jahmby Koikai, nirudi home after watu 300 kukuwa mbele yangu? Nikasema zi. So I stayed in line until I got to the audition room. The judges were a few people I was in campus with. I felt a wave of despair. Like I’m here auditioning, yet my classmates will be judging me? I did my thing and I was considered. We got into the house and we were assigned to different groups. I was the group leader and we won the challenge. Later that evening, we were driven back to Film Studios for a briefing. The presenter of the show said, some of us have to go home. My name was called out first amongst other great people. We were dropped home. I cried. It felt like I’d lost such a great opportunity. My mom and late grandma were so sad cos they loved to watch me do the news. Then came another opportunity over 10years ago, I saw a TV ad and decided to apply for the news anchor position. As you see in this pic, I got my hair done at Ralph’s Hair Salon, new suit etc. I didn’t get the job. After KBC, I never got to anchor the news again. I’m grateful I did not get the job even though I felt dejected at the time. I battled severe Endometriosis in silence for over 19years. I think of how engaging the newsroom is and I’m grateful I wasn’t in that space. I’d have utilised all my sick-leaves and off-days and just declared redundant. There are many people like me who are bound by chronic illness and cannot do the things they love. I share your pain. But there’s hope. I’m grateful to God for His reminder that He will restore to you all the years that the locusts have eaten. Also Jer 29:11

A post shared by Jahmby Conqueror (@jahmbykoikai) on

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