A successful sale takes planning, patience and an excellent understanding of the buyer and why the business is precisely what they are looking for.
But before all that, you need to ask yourself, is there anything more you can offer your business before starting the process?
And if you are happy with the prospect of selling, the next step is to talk with a business broker. If the broker serves you correctly, you can expect the following steps.
You’ll be required to start gathering some information so your broker can understand the market value of your business. While collecting this, talk to your accountant about your plans to sell and understand any tax implications that may arise.
If you’re involved in the business, you’ll need to provide payroll summaries and BAS statements to substantiate your earning reports.
Marketing; real estate has not been sold without a marketing budget for 20 years. Still, this comes as a surprise for some. Business sales aren’t Gumtree ads, you should budget between $3000 – $5000 for most businesses under $ 1 million, and it can go up from there.
This money goes to professional copywriters, SEO people, graphic designers and administration staff. Your marketing should be targeted and professional; understanding who your buyer is and where to find them is why you engage a broker.
At this stage, your focus is back on running your business.
In the background, your broker is answering calls, making calls, returning missed calls, emailing old leads and replying to new leads.
Unlike boat sales and not like real estate, this process can take many months or even years.
It can take months to get an offer from a buyer, let alone another few months, to work out the conditions so we can have a conditional contract signed and the deposit paid.
So don’t think this part happens quickly; it does not.
Calling it the settlement stage is a little misleading.
If you now have an agreed price, there is a genuine risk your solicitors can bog the deal down whilst putting your legal bill up.
Again, another reason why a good broker is vital. If your broker has used the last few months to build rapport and become a trusted advisor to both buyer and seller, they can help the parties agree on a sticky clause without disservice to anyone.
Sometimes, commercial minds help legal minds not lose sight of what both parties want. Once signing takes place, you should have an obvious path on what conditions must be met to proceed to settlement and get back out on the water.
These are the broad steps involved in selling your business.
It takes time, and the best advice I can give now is always to be prepared for sale.
If you would like some advice about selling your business, you can contact me by:
- Call on 0416638154
- Email at email@example.com
- Booking a Strategy Call in my calendar