You might be wondering that “Why should I start preparing my business for sale while it isn’t for sale?”
Though it’s a good question but, Business Brokers believe that the best time to sell your business is when you want to, NOT when you have to.
Here we would like to mention that, according to a study in a survey in January 2015; less than 10% of businesses are ready for sale.
A lot of happening take place around you over which you have no control. There may come such circumstances when you have no choice but to sell or leave your business. For example, Health issues, divorce, urgent re-location, death, conflict and many more. When any of this takes place you may receive a very little price or worse than that. In such circumstances you are only forced to shut the doors and walk away with very low amount of money or even none.
Being a business owner, makes us realize a fact that at some point in future we are going to have our business sold or closed. Off course selling it (if we can) is a way better option than simply closing it down. When some potential buyers are looking to buy your business, they will spend a lot of time to have a deep look into your business history and reviewing it.
The potential buyer would be interested in looking into the accounts of your business for past three years or more. Having clean and up to date records, with very little adjustments will give them a real peace of mind. The good old “you know what I mean, nudge, nudge, wink, wink” line doesn’t help when you’re trying to get a better price for your business. Every single dollat which you take out of your business and cannot account for, will have an adversary effect on the price of your business.
Another aspect which you should consider is that a potential buyer will want to make sure that the business, not you, has good agreements and relations in place with staff, suppliers and customers. The finest way to do this is to put these in place methodically, in usual days of business. You may not want your customer, staff and suppliers to know that the business is for sale until the time is right. If you would start rushing trying to collect all the agreements, it will make everybody around you curious and will create unwanted complications.
Take some time apart from today and answer yourself below questions:
Preparing your business for time could be time taking. If you start preparing it for sale from today, it will give you more time to think of more options. And it will save you from simply closing the business down or getting a very low price for it.
The best thing in preparing your business for sale is that it will also help your business to be more successful. What is good for buyer is good for you too.
CBC Business Brokers Sydney
Level 34, AMP Centre, 50 Bridge St, Sydney NSW 2000
T: 1300 661 498