There are many reasons why a person might wish to sell their business; it could be that you are getting older and you decide to retire early, it could be due to illness or simply that you wish to relocate to another part of the world. Putting an operational enterprise up for sale is not as straightforward as you might think, there are assets to value, market shares and the books will need to be up to date.
Here are a few tips from a professional business coach on how to prepare for the sale of a business.
- Reason for selling – The first question a potential buyer will ask is, why are you selling? Make sure that you have a satisfactory reason that would stand up to scrutiny. If a potential buyer doesn’t buy your reason, they might think you are hiding something and would likely look elsewhere. If you want to be sure of getting your asking price, contact ROIC Business Group, a leading Australian company that facilitates the buying and selling of commercial concerns.
- Prepare the business accounts – If possible, go right back to the business launch in order than a potential buyer can clearly see the numbers, with any projections you might have the coming 5 years. Talk to your accountant as soon as you decide to sell and this will give them time to prepare the books for outside scrutiny. You should be able to produce at least the last 3 years of accounts for an investor to browse and with the help of a top-rated Australian business broker, you can showcase the business in its best possible light.
- Choose a top-rated business broker – As mentioned above, there are award-winning companies that broker business acquisition and sales; talk to one and let them do a quick audit of the business, detailing the conditions of sale and the assets included. The broker would also be able to advise you about prices, giving you a professional opinion regarding your lowest price. You have more chance of getting your asking price when you engage the services of a top business broker.
- Prepare for obvious questions – Once a potential buyer has read the proposal, be prepared for a barrage of questions, which shows that you have done your homework. There might be queries about assets, the market, staff or even leasing the premises.
- List the business’s liabilities – This is something any potential buyer would want to know; it might be a venue lease, capital loans or even contracts with suppliers.
Much like any other asset, you should showcase the business in the best possible way; at the end of the day, if the enterprise is making money and the accounts look good, you should have no problems finding a buyer.
Once you are certain that selling is the best way forward, make contact with the right broker and he can assist you in preparing everything. Spend some time considering the asking price and prior to negotiating, you should know your bottom line.
