Preparing your business for sale

Preparing your business for sale

Engaging a business broker to assist in the sales process normally results in a better sale price, cleaner terms, and the best suited buyer. In addition, brokers do all the work for you and only get paid if a result is achieved.

 

Often sellers attempt this difficult process themselves, normally messing it up, as they simply don’t know what to say or when to say it. Sellers can’t help themselves, when they meet a buyer, it’s like it’s their time to shine and they spew out all sorts of facts and figures, industry jargon, war stories from years gone by and other totally irrelevant stories, which buyers can’t understand or relate to.

 

Sellers rarely relate to the intimate process of selling a business, so don’t lose good buyers and engage a professional to do all the work for you.

 

Long term business owners often get a rude shock when they learn they could be up for large amounts of money to cover staff entitlements at settlement. Ask your accountant before you go to market as it can add up.

 

It is common for sellers to let the presentation of their business and the equipment and vehicles run down, when considering selling. Asset value is always considered in a business appraisal, so you won’t be throwing your money away to have good gear and you will likely save money on repairs, maintenance, and efficiency by doing so.

 

Buyers are now less likely to want to work hands on in a business full time. Gone are the days when business owners expected to work 60 – 70 hours per week, the preference now is to have staff to do everything. They will pay a premium for businesses that offer key staff, so they have flexibility and can work on the business…rather than in it.

 

So, if contemplating selling, your business will be more appealing to the market if you can make yourself redundant. Letting go is hard, however, if your business can afford to pay a wage for someone to do your role, you will enjoy it much more and likely attract a better result.

 

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