When planning to sell a business, one of your primary goals is to maximise your profit on the sale. To achieve this, you need to ensure the business is in a state in which someone else will want to take over it. To help with this process, we’ve listed some steps below to help you prepare for sale.
Plan before you sell – ensure that you’ve given yourself enough time to research and plan the way in which you propose to sell the business. Inadequate preparation time can lead to a lower profit.
Are your taxes and finances in order? – be sure to look into this early in the process so you can receive as much advice as possible and lead time to resolve any issues. You’ll also want to make sure your business value is clearly documented.
Stock, debtors and suppliers – have you had a chance to help make your profit margin a little higher by tightening up costs in these areas?
Contracts – it’s a good idea to get your solicitor to look over any paperwork and contracts with as much notice as possible. This will allow for any uncertainties to be cleared up early.
Are you happy with the proposed value? – it’s best to completely understand why your business has been valued at a particular amount. This type of information should be based on accurate data and presented to you after comprehensive research has been conducted.
What about your customers/clients? – at some point you may need to inform your customers that you’ll be selling and to assure them that they’ll still be receiving a high-quality service once the sale has gone through. If you have any special arrangements with certain customers, then these also need to be documented for the new owner.
At NAI Harcourts Rinnovate, we have learnt from personal observation that interested buyers will pay more for a particular business. We’ve grown to know the psyche behind the buying process and the various reasoning behind buying decisions. With our dedicated team, we’ll endeavour to match you with the right buyers for the price and help you execute a confident and pain free sale. It’s also important to note that by using a professional broking service, you’ll be removing any emotion from the sale and leaving the hard negotiating work to the experts. A business broker will act purely on your best interests and support you throughout the entire journey.
If you know you have some work to do before you can command a good price for a sale of your business, consider making early use of our Business Advisory service. With a focused and strategic approach you can save time, money and effort by knowing what to focus on to maximise your sale value. We help you strategise for the success and growth of your business whether the goal is to produce more profit from a sale or to reinvest in other activities.
By conducting a thorough analysis of the business and its market, our business advisory services can assist in the following ways:
To learn more about how our business advisors can help you and your business, feel free to use the following link