PREPARING TO SELL YOUR BUSINESS
To ensure you are able to sell your business for the highest possible price in the fastest time, it would generally be beneficial to begin preparing for sale well before you put your business on the market. This may mean planning months or even years in advance. Being mindful to build a saleable business.
Preparation may include;
- Documenting processes and policies, making it easier for the new buyer to operate the business.
- Ensuring employees have documented job descriptions.
- Obtaining written agreements from suppliers and review contracts to make sure they don’t expire during the sale.
- Sell out obsolete or slow moving stock.
- Reviewing plant and equipment and sell anything not required.
- Ensure premises are well presented.
- Reviewing your lease agreement to ensure it doesn’t expire during the sale and includes provision to transfer the lease to a new owner.
- Collect outstanding debts and pay creditors.
- Obtaining accountant prepared financial statements for at least the previous three financial years.
- Reducing employee leave liabilities by encouraging them to take leave, if possible.
- Consult your Accountant to prepare financials, plan for bulk influx of fund from sale, establish value of business
Potential buyers will want to undertake their own due diligence checks on your business. However, it is essential to make the purchase as easy and transparent as possible for the buyer, as such you will need to work with an experienced business sales person prepare a buyer’s information pack outlining key information about the business and what is included in the sale.
Generally, the buyers pack would include;
- Confidentiality agreement
- Description of your business
- Details of what they buyer is actually buying such as; list of business assets and their value, details of branding, customers and contracts, software, data bases and websites, policies and procedures, premises or lease agreements and much more
- Customer or client profile
- Industry information including how your business performs against industry benchmarks
- Testimonials from suppliers and customers
- Accountant prepared financial statements for at least the previous three financial years
- Offer and acceptance form
- Contract of sale
Natalie your @ Real Estate Yeppoon Commercial specialist will be happy to work with you to ensure your business is ready to sell for the highest possible price. Call Natalie on 0411 874 969 to discuss selling your business now or planning for the future.