Preparing Your Business For Sale – Top Tips From A Broker
You’ve poured your time and energy into growing your business, and it’s likely become one of your most valuable assets.
When the time comes to sell, you expect that your efforts will be rewarded with a fair price to fund either your retirement or the next venture. Unfortunately, without adequate advice and preparation, business owners may end up struggling to find a buyer, or settling for a far lower price than what they deserve.
So, how do you get full value for your business? Here are my top tips:
1. Prepare a business plan
Identifying a clear business strategy will help you realise the full potential of your business and make it more attractive when you’re ready to sell. Buyers put a premium on growth and profit projections and a clear risk profile and management strategy.
2. Have a Valuation performed on your business
Marketing your business at too high or too low a price can cost you dearly, in both time and money.
3. Engage a broker
An experienced business broker will streamline the process considerably and make sure you get the best possible price. They’ll give you marketing advice, help you find buyers, filter out the time-wasters and handle negotiations for you.
4. Think like a buyer
Take an objective look at your business and identify anything that would make you think twice about buying it – then be sure to fix it.
5. Be transparent
Communicate clearly and openly to make sure there will be no surprises that could delay or prevent a sale. Keep employees, clients and suppliers (where appropriate) informed about how the sale will impact them.
6. Allow plenty of time
Whether you’re following a succession plan or selling at short notice, try to allow as much time as possible. Rushing the sale or seeking an urgent settlement will drive the price down. Engaging an experienced broker can advise you on the best time put your business on the market.
Article written by Jon Hemming