5 things you need to do before selling your business
Selling your business – How to prepare
Before you embark on your business sale journey in Sydney, or in fact – anywhere around Australia; there are certain things you should do to correctly prepare. This ‘pre-work’ will make the business sale process run smoother and allow for maximum efficiency from start to finish. And most importantly, is likely to enhance the value of the business. In no particular order, here are 5 things you need to do before selling your business:
- Select a broker that suits your business and your needs
Not all business brokers are alike. Some specialise in particular industries, while others are broad spectrum with years of experience. Alongside finding a broker who is familiar with your industry and location, it’s important to find one that you believe will get the job done well.
Your business broker is the facilitator of the business sale. They’ll attract potential buyers, assist in negotiations, guide you through the paperwork and finalise the sale. Having faith in your business broker’s abilities is important. And employing a broker who has a great level of experience, knowledge and people skills is even more so.
- Tidy up and organise
We’re not talking about the physical rooms in the business (though, if they need tidying, then it’s probably not a bad idea!). We’re talking about the business itself. Operations manuals, financial data and employee records; all of these components (and more!) make up the business behind the scenes. To appeal to potential buyers, and allow for a seamless ownership transition, you must prioritise organisation. In summary, prepare a critical SWOT analysis of your business to see what corrective action needs to be taken prior to the sale process.
- Decide what’s for sale
You may be happy to include everything in your business sale. However, it may not be the best option for you. For example, selling old equipment that is no longer used may prove financially beneficial before selling. Importantly, there may be capital gains tax implications in the sale and this should be canvassed with your Accountant to understand the best methodology for the sale, i.e. share sale Vs asset sale. It’s wise to chat with us here at Core Business Brokers, as well as your business Accountant to determine this.
- Finalise your exit strategy
Your exit strategy (otherwise known as ‘succession plan’) should be revisited sporadically throughout the tenure of your business ownership. But now that you’ve decided to sell, it’s time to finalise the details of your exit strategy. If you need assistance in creating an appropriate succession plan, chat with a member of our team, as they have years of experience in this area. We’ve also written a few blogs on succession plans. You can find a couple here and here!
- Remind yourself that this is a business decision
Selling your business can be an emotional experience, so when you’ve decided to pull the trigger on your business sale journey – you must remind yourself why you’ve chosen to do so. It may be helpful to write a list of reasons why you’ve decided to sell and display them at home as a friendly reminder. So when you find yourself sitting on the fence, you can glance at these important reasons and remember why you’ve made this important decision.
If you’re toying with the idea of selling your business and are looking for a business brokerage who understands business sales in the Sydney region and beyond, contact the team Core Business Brokers today. Our experienced team of Business Brokers are happy to take your call. Contact us to begin your journey here, or give us a call at (02) 9413 2977. Alternatively, email [email protected] or [email protected] to discuss your options.
