To sell a business don't put it on the market too early.
That can be like launching yourself down a ski jump without being ready and well prepared.
You wouldn't do it, would you?
So why would you make such a big decision to sell a business before you were "ready for sale"?
Sometimes I am contacted by a business owner who has been approached by a potential buyer. Or sometimes they've just made the decision themselves to sell the business. Often they have given it very little thought and no preparation.
Selling a business is not as simple as selling a house. It is often a long and emotional journey. You need to be well prepared and understand what you are going to need to have ready, the costs involved, the team you need to have around you and be realistic about the price and the timescale.
Most times when sellers go to the market too early, they end up putting themselves under tremendous pressure scrambling to get things together for the potential buyer and the buyers team. Suddenly everyone wants every thing NOW!
IT DOESN'T HAVE TO BE LIKE THAT!
Schedule a no obligation call with me to have a chat about your business or go through my free online business review. Select an option below.
Here is a list of some of the things an owner needs to prepare before you try to sell a business.
- At least 3 years 'accountant finalised' profit and loss statements
- A recent Year To Date profit and loss report
- Current depreciation schedule
- Up to date plant and equipment and asset list
- Legal information such as leases, licenses, registrations etc.
- A business profile or information memorandum
- Documented operations, systems and processes
- Human resource information and employment contracts
- Supplier agreements
- Client lists and associated information
There is much more than this but hopefully this will give you a good idea of the amount of preparation you need to do BEFORE going to the market. The last thing you want is to spend months (or years) getting a buyer to the point of due diligence and then having the whole deal fall over because something was missed in the preparation.
Spend the necessary time up front getting ready for sale before you go to the market. My work with a business owner includes:
- an in depth analysis of the business - financial and non financial
- research the likely range in which the business could get offers
- develop a plan with the owner to increase the value and saleability
- educate and prepare the owner for the sale process
The result is you will get a better price for your business and have a stress free and smooth sale process.
Book a date and time while you are here, to chat with me privately one on one about your situation. Alternatively go through my free online business review. Just select an option below.