Generally business owners want to maximise the value of their business and sell in as short a timeframe as possible.
Making cosmetic changes to your company just prior to going on the market is a recipe for disappointment.
Planning and preparation for sale requires time and one final burst of energy maintained right though to settlement.
To maximise your sale price and sell as quickly as possible, here are seven steps I recommend.
- Seek advice in advance
Work with an experienced professional broker or accountant with a proven track record. They will help you set a reasonable selling price in the current market for your industry.
- Increase profitability – simply
A simple quick fix for most small businesses is to remove all private expenditure paid by the company. Items like mobile phones, car expenses, private insurances etc.
- Decrease stock on hand
The level of stock can be a major stumbling block for buyers to obtain finance. Take the time to purge old and slow moving stock. It will give you cash in the bank and make the business more affordable for a buyer – a win-win situation.
- Have a break then get active
Don’t take your foot off the accelerator after you list for sale. Take a quick few days off and regenerate your energy levels – you will need it. If you do slow down you may hand part of your business value to your competitors leaving you less to sell.
- Create a strategic plan
This will sound counter intuitive. However, you understand your industry and showing a buyer a glimpse of the future can add value and attractiveness. They will use it to obtain finance also.
- Systemise and empower Staff
Businesses that are run under management are far easier to sell as they attract a broader audience.
- Stand out in the crowd
Clearly articulating what makes your business different to your competitors. Third party endorsements are worth their weight in gold. For example testimonials from long-term customers and suppliers gives the buyer surety.
By Dean Demeyer, Finn Business Sales