Start preparing your business for sale long before you actually want to sell it.
Why prepare your business for sale in advance?
When presenting your business to a buyer, you need to be able to showcase what it is that you are selling. This means that you must present the buyer with the financial information in an organized manner. Furthermore, operational matters and systems need to be presented in a way that makes sense. If a buyer can understand what is on offer, they will be able to make an efficient decision.
Preparing the business for sale well in advance means that the seller will be able to present the business optimally and as a result:
- maximize the value of the business and;
- sell in a shorter marketing period.
How do I prepare my business for sale?
From as early as 2 years in advance, start thinking about how your business looks to a potential buyer. Ask yourself the following questions:
- Is my financial information organized? Do you have your books kept in an accounting software that makes reporting easy? A buyer will want to know what the income, expenses, cashflow and assets of the business are. Many cloud based systems are available such as SageOne.
- Are my operations systemized in a way that makes it possible to communicate what the business does and how it generates income?
- Am I integral to the running of the business or is the business systemized? Am I replaceable? Are you selling someone a job? Do they need the same skills as you to take over the business? Or is there an operating or management system in place that allows someone could step into your place without prior experience?
- Are all my cash transactions recorded? All income must be accurately recorded to maximize the sale value of the business.
what if i haven’t prepared but need to sell urgently?
A good business broker will advise you on the best way to present your business for sale. They are experts in presenting Businesses for Sale it in a way that a buyer can understand. For more information about what a business broker does see our previous article: What are business brokers?
Business traders can guide you
For more information about preparing your business for sale, we recommend you download our guide for sellers: Sell Your Business Like A Boss
People with goals succeed because they know where they are going.
– Earl Nightingale