If you are about to sell your business, think again. Selling a business should never be a hasty decision. You need to analyze many things while thinking of selling your business e.g. when is the finest time to sell? And what are the rest of the things to consider among many other considerations.
So, should you sell your business? Below are 8 important questions to help you analyze it.
You can never start putting things together a month before you sell your business. Therefore, Business Brokers Sydney recommends minimum of two years preparation before you put your business for sale on the market. Make sure to generate accurate tax returns which show max profitability. In this way you can get the best price for your business.
It is an important thing for you to figure out that whose services will help you in sale of your business and to get maximum selling price. You may need services of an accountant or attorney and specially a Business Broker. Buyers have a team to analyze and go through your business thoroughly, so should you.
Most of the business owners try to sell their business when it is not that good for them anymore. It is the opposite of what you should do and should actually be done by any business owner who wants to sell his business. You should sell your business when it is at its peak. Some of the owners would question that my business is making me money now, why should I sell? Well, here we should think like an entrepreneur, not like a business owner.
You should always take a look on the market conditions relating to your business sector. Selling a business in a favorable market situations can get you the best selling price for you business. Or it can be opposite is unfavorable situations.
Technology is changing rapidly, Globalization is increasing and other businesses are trending; this can prove too much for many business owners. You should keep your eyes trained for two to three years down the road. If you think that you can’t continue, you should sell your business before your failure. Many business owners find it difficult to leave, but if you wait too much the industry may bypass you.
If your business is too much dependent on yourself or any one customer only, the buyer may not be that much interested. A great business is, which can be operated even when the owner is on Holidays or vacations. A good business also has different customers and none of them should represent more than 5% of the business separately.
You should figure out if it is worth it or not. You can simply accept it and stay for a period of about six months as a consulting role. It would reduce the risks for buyer pretty much and will be a reason to get a better selling price of your business.
There could be many unresolved issues which can rear their head in and can adversely affect the sale of your business. The examples of such issues could be intellectual rights of property, accounting or company ownership. You should resolve them before closing the deal or even before putting your business for sale in the market.
CBC Business Brokers Sydney
Level 34, AMP Centre, 50 Bridge St, Sydney NSW 2000
T: 1300 661 498