Selling Your Business
It’s an interesting fact that more and more owners are choosing to market their business for sale privately, boosting their return by not having to pay expensive broker fees.
This is a smart move indeed, because at the end of the day, even if using a business broker, the owner still does much of the work, providing the information, getting the financials up-to-date, even meeting with prospective buyers.
Working with a specialist company, specifically set up to privately sell businesses and properties for the owner, you still have access to a huge database of prospective buyers, as well as professional services, such as writing and graphic design.
But there are certain things an owner can do to get the business ready for sale.
Talk to your accountant and lawyer
From the get-go your accountant and your lawyer need to be included in the loop, so they can help you through the financial and legal side of selling your business.
When you get a buyer on the hook, you want to be sure everything is prepared and legal, so that nothing will interfere with your sale.
Your accountant can help you decide a sale price for your business, and prepare your books, so you have all the financial information to hand when you meet with the prospective buyer.
They will also be able to determine if you are entitled to tax breaks, such as the small business capital gains tax concessions, and help you draft the sale contract.
The likelihood is that they have done this many times before and know all the pitfalls and possible problems. Quite simply, you cannot afford to not have them involved.
Determine the sale price
This is where you need to balance emotion and practicality. Because you probably built your business up from scratch and have invested blood, sweat and tears in it, you may think it’s worth more. Talk to your accountant, study your industry, look at the tax implications and come up with a value that is realistic, will attract buyers, but will also give you a good return.
Prepare the financials
The first thing a prospective buyer will want to see is ‘the books’. You would do the same. If you have been keeping your books up to date and regularly preparing profit and loss statements, this should be easy.
Imagine what you would want to see if you were the buyer and go from there.
Prepare a financial forecast
This naturally leads on from the former point. Your buyer will very likely ask for financial forecasts, and these should be realistic and sensible.
Get your business on the market
There are several ways you can market your business. Traditionally, business brokers held the monopoly but these days there is more choice, with options that allow you to keep the bulk of the money.
A company like Coast to Coast Media is specifically set up to market businesses and properties, using a system perfected over many years.
Australian owned and not affiliated with any real estate agency or group, Coast to Coast Media has been assisting sellers for over 37 years, by giving them the tools required to sell privately. They offer low advertising costs and absolutely no commission is ever taken.
Coast to Coast target local, interstate and overseas buyers and offer a range of services from professional writers and graphic designers, to scripted videos.
And finally . . . .
Once your sale is finalised, and the money is in the bank, you are fully equipped to make your next move, be it a new and exciting venture, or the delight of retirement!