Are you going to sell a business one day?
Because if you want to sell a business then it needs to become a valuable saleable asset and you need to make that a part of your business strategy.
The decision to exit and hopefully sell a business, usually comes down to one of two things. Money or time!
That is "I want to be out of my business by <date in the future> to retire, live life, buy another business or do other things.
Or, it's "I will exit and sell when my business it is worth <$ XXX,XXX>".
Which is it for you? Either way, you should be thinking about it now.
If you want to sell a business in the next 3 months or sometime in the next 3 to 5 years then there are things you need to know and do NOW!
Stats from various business sale websites that I monitor and from Chris Milne, business valuer at Jarot Business Valuations in Perth, show that there has been an increasing number of businesses for sale on the market. This means that it will be more difficult to get a business sold and only the best-prepared businesses and owners will sell for a good price, in a reasonable time and with no issues.
Find out what you can do now by registering for my next half day workshop on The Keys To Turn Your Business Into A Valuable Saleable Asset. Registration includes an in person workshop, handouts and a one hour private consult to review your business.
According to a recent issue of Business Values Newsletter, published by Chris Milne owner of Jarot Business Valuations, the number of businesses coming on to the market in ALL states of Australia went up quite significantly after COVID.
It seems that business owners who made it through COVID and have gone well in the last twelve or 18 months are now looking to retire and live life, especially the older business owners who have been putting off retirement.
My observations from working with many business owners across different industries is that:
- The enormous effort that they have had to put in to cope with the COVID pandemic is worn them down.
- They are suffering "burnout" because business has increased but they can't get good staff and are having to work back in the business "on the tools".
- Alternatively, business has gone backwards and they are struggling to make ends meet.
- Many business owners would have sold in 2020 or 2021 but put it off due to COVID. Now they are all coming to the market at the same time.
- Uncertainty of what will happen in 2023 and 2024 around interest rates and the economy is driving business owners to close up and retire.
The message I am trying to get across is that with the number of sellers going up there will be more competition to find good buyers.
Finance is still quite difficult to get and that means the sale process is drawing out. If you have any ambition to sell your business in the next year, or three, then start working on it now.
Only the very well-prepared businesses will be selling for the best price for the seller.
Sadly, many business owners leave it too late to start planning and preparing and then it ends up becoming a 'fire-sale'. This is NOT where you want to be.
I help business owners by:
- Holding workshops so that business owners know how to value their business, make it more valuable and make it attractive to buyers
- Conducting business ready for sale assessments - a sale simulation really!
- Produce a comprehensive report of where the business stands now
- Look at opportunities and plan to increase saleability and value
- Be there to assist with the sale
- Advise and direct owners to the best people to help
Why am I qualified to help? Some years ago, as a business owner, my business partner and I went about trying to sell our business ourselves. We stuffed it up!
Thankfully it didn't sell and after 6 months on an emotional roller coaster, we sought expert advice and help. As a consequence, we were able to sell the business for 25% more, quickly and easily.
After this experience, I realised how little most business owners know about valuing a business or what it takes to sell a business. I became a 'business ready for sale' mentor and was invited to become a business broker with a very successful firm in Perth.
Over twelve years as a broker, I sold many different types of businesses in various categories. I now bring all that experience to my clients to help them.
My role is to help other business owners avoid the mistakes I made and be well prepared to get the best price for their business, as quickly and easily as possible.
You can get started by attending my next half day, 'in person' workshop. Click the button below to find out details.
Not ready to attend a workshop yet, or can't make the date, why not do my very quick (less than 4 minutes) quiz to see if your business is saleable and get a personalised report and tips to increase the value and saleability?
