- Profit is the most important thing!
Do not under estimate just how important this single factor is.
At the end of the day it is the most important issue in any sale.
- Price is directly linked to profit.
The higher the profit the higher the price. Broadly speaking double the profit
over time and you double your price. Overpricing your business usually
leads to a much longer sale process and ultimately a below market price.”
- Have financials at the ready.
Nothing frustrates a keen buyer more than not having basic financial information ready.
3 years is the minimum
- Each business is different.
Do not consider that the approach taken in the sale of your local “Newsagency’ is the same approach you should take with your business.
Each business requires a tailor made approach
- Consider tax implications.
Long before you put your business up for sale discuss the possible tax implications with your accountant. You may get a surprise. Consider GST, CGT, tax on undeclared stock and selling the shares in the company as an alternative. Believe me a visit to your accountant is a wise move.
- “Fully Disclose”.
A full open and transparent transaction is the only way to sell a business.
Document everything fully, it is all part of the correct presentation on your business and adds to buyer confidence.
- Get objective advice.
One of the biggest mistakes made by sellers is in not seeking independent advice. This oversight can single handedly lead to delays, great frustration and ultimately the loss of the sale altogether.
- Select a broker with good reputation & reasonable fees.
Brokers are just like any other profession, there are good and bad.
Select wisely. Someone with a lot of experience and a good reputation is a great place to start
- Prepare your business well in advance.
You cannot start too soon. Tidy up the premises, cut any unnecessary costs, clean up the balance sheet & income statement. Avoid any marginal perks, document the essentials.
Experience is everything. If we haven’t dealt with your concern here contact us today on 1300 019 661