Business Ready For Sale Assessment

What's the first thing a taxi driver wants to know when you book a taxi?

When I ask this question in a workshop the majority of people answer "Where I'm going?"

WRONG! The first thing he or she wants to know is "Where are you now?" Until they know where you are they can't pick you up to take you to where you want to go.

In business, we need to know where we are now before we can plan and work out how to get to where we want to go. When you are thinking about exiting your business and selling for the best possible price, you need to know where the business is at right now!

You're possibly worried because you've invested blood, sweat, tears and years of your life into building your business. You've looked after your staff and provided for them. Now you are relying on selling your business to retire or move on to the next project and you are not sure how or when to start the process.

If you want to realise maximum equity in the shortest prossible time, with the least hassle and no post sale issues, then you need to be very commited and rigorous in the planning and preparation process.

I want you to understand that successful business sales and exits only happen after a lot of preparation and planning. Happy seller and happy buyer is always the goal.

Selling a business is more complex and often takes much longer than most owners expect. It can be a very emotional roller coaster ride and distract from running the business. I know because I have been there when selling my own business and then spending 12 years as a coach and business broker selling other businesses. I’m no longer a broker but use that experience to coach and guide business owners.

There are many ways that businesses sell other than advertising through a broker, such as:
• To an employee or group of employees
• To a family member or members
• To a supplier or customer
• To a competitor
• Via a merger or acquisition
• A share sale if the selling entity supports that
• By taking on a partner and transferring to them over time

There are also options to selling:
• Bleed it dry and close up
• Liquidate and wind up
• Run it under management

Willingness of financial institutions to fund a buyer can affect how a business sells. For example, is the seller prepared to offer vendor finance if necessary.

Then there are things related to the owners personal situation that need to be considered. Tax and capital gains are just the start.

Lots of things to consider. That’s why I setup my ‘business ready for sale’ assessment service. Successful exits and sales only happen after good preparation and planning.

For a small initial fee I will start the planning and preparation process:
• Analyse the business financials over the last 3 or 4 years to determine the adjusted maintainable net profit for the owner
• Look at all the non-financial elements of the business and highlight the positives and negatives
• Research the market and estimate the likely range in which the business would attract offers if put on the open market.
• Recommend areas to improve saleability and value of the business
• Put all of the above into a document which also explains the sale process in detail
• Meet with the owner(s) to plan the next steps

If you think you would like to proceed with an assessment SCHEDULE A CALL with me for an informal no obligation chat. Click on the button below.

One last comment is please beware of online and free business valuations. These are typically created in the USA and don’t relate to local market conditions in WA and there are no rules of thumb when it comes to business valuations.

Get a Business Saleability Assessment now! It is a great start and can become your strategic plan to grow the business and plan your exit whether it be in 3 months or 3 years.

The first step is to contact me for an informal chat about your business and situation.