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Steps to Successfully Selling Your Business
article contributed by Ryan Willsher, Finn Franchise Brokers and Reece O’Sullivan, Finn Business Sales
Business owners – no matter how knowledgeable they are in terms of running their own business – must be prepared to invest time to properly prepare for the sale of their business when the time comes to exit. Not surprisingly selling a business requires multiple skills which are totally different from the skills required to run it. If you decide to sell your business, you need to make time to do your homework, explore all the potential options available to you, as well as have a flexible plan to accommodate any changes in your circumstances in case they happen.
Plan Out All the Details
You should allow at least 6 to 12 months to properly plan and prepare your business. By planning and being prepared you will be able to continue to run your business successfully and not be distracted. It’s vitally important that your business continues to operate at the same level or better during the sale process in order to maintain the sale price and value of your business. This is also a time for you to talk with your family so they understand what exactly is going on, what the sale process is and the most likely outcome. Thirdly, you should also surround yourself with professionals who specialise in your area of business such as a lawyer and accountant, so they can facilitate the legal and financial aspects of a sale.
Know Your Buyer
The natural buyers of or investors in your business will be the ones who will typically pay the highest price. The best thing to do is to know who they are. It is also important to know how they will assess value so you should prepare your business in order to maximise the value of your business and to maintain your standard of competition when it is time for you to sell.
Make the Business Saleable
New opportunities and improvements are attractive to buyers so introducing these during the sale preparation stage an offer real value to your business. You may also need to consider from a management perspective how you will step away from the business. Can it run without you? If not, start training staff now to take on some of your tasks and delegate some of your responsibilities. If required, pay for housekeeping, which involves getting accounts finalised and audited and tidy up any legal and operational risks. When you have everything in order, the business will look more attractive.
Hire Professional Help
Don’t be afraid to ask for professional help with the sale of your business.
Ask your accountant or a third party to perform a due diligence check on the business before there are any actual buyers. This will identify if you have any issues but also helps the business to prepare for the sales process.
Consider contracting professional experts in sales and franchising to help you sell your business if you are inexperienced in this area. Generally, the money you spend in this area is given back to you in the form of a higher sale price due to the professional presentation of your business.
Making the decision whether to sell your business can be a stressful process, however, planning and preparation for the sale can ease this stress and ensure that you achieve the best possible price in the smallest possible time.
If you need any help to sell your business or are interested in finding out the market value of your business please do not hesitate to contact us on (08)9301 2200 or send an enquiry here.
We would like to thank Ryan and Reece for contributing this article. If you would like to get in touch with them, you can contact (08)9468 5130 or email them at email@example.com
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