Thinking about selling your business? It’s crucial to take the right steps to prepare, as this can significantly enhance the value of your business and ensure a smoother sales process. Whether you’re planning to retire or looking for new opportunities, following these seven steps will help you get your business sale-ready.
The time required to prepare a business for sale depends on your goals and how soon you want to sell. If you’re aiming to exit in a few years, you can take more time to boost your business’s value and gradually delegate responsibilities to ensure the business can operate without you. For a quicker sale, you may need to streamline the preparation process and focus on targeting the right buyers.
Start by identifying what you want to achieve from selling your business. Is your priority securing a specific price, ensuring a smooth transition for your employees, or completing the sale within a certain timeframe? Having clear goals will shape your strategy. It’s also essential to have conversations with business partners, family, or key employees to align everyone on your goals for the sale.
Before you put your business on the market, address any issues that could scare away potential buyers. Buyers will scrutinise your business, so resolve any legal disputes, tidy up company records, and ensure you’re up to date on payments. Unresolved problems could derail a deal, so consider involving legal or financial experts early to help iron out any concerns.
One of the first things potential buyers will ask about is your financial performance. Ensure your accounts are accurate and up to date. Be prepared to answer key questions, like your business’s return on investment, profit margins, and details about key suppliers and customers. It’s wise to consult your accountant to ensure everything is in order, as clear, organised finances build buyer confidence.
Knowing your business’s value is crucial. A professional business broker can provide a thorough valuation based on your financials, market conditions, and growth potential. This will give you a realistic idea of what your business is worth and help set an achievable sales price. The valuation will also highlight areas where improvements can be made to boost the sale price.
Based on the valuation, there may be opportunities to enhance your business’s value. This could mean upgrading equipment, investing in staff training, or improving systems to make the business less dependent on you. Strengthening your supply chains or customer relationships can also increase value. The more time you have before the sale, the more improvements you can make.
Once your business is prepared for sale, you’ll need a strategy to attract the right buyers. A skilled broker will help you market your business effectively, presenting it in the best light and targeting buyers who will see its value. Sales particulars should be carefully crafted to showcase your business’s strengths without giving away sensitive information. A clear, focused marketing plan will attract serious buyers and help secure a favourable deal.
The sale doesn’t end when a buyer is found. You’ll need to ensure a smooth handover by sharing your knowledge and preparing the business to operate without you. This transition period is key to maintaining business continuity and ensuring the new owner’s success. Your broker can guide you through this process, ensuring the handover is seamless and that the business is set up to thrive under new ownership.
Whether you’re just starting to think about selling or actively looking for a buyer, having an experienced business broker by your side is invaluable. A broker can guide you through every step, from valuation to marketing to the final handover. At Business Partnership, we’re here to help you navigate the complexities of selling your business and maximise its value.
(Originally posted 2021. Updated 2024)
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.