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Selling a Business

ARE YOU READY TO EXIT?

If you've gone this far, then selling your business has aroused enough curiosity that you are taking the first step. You don't have to make a commitment at this point; you are just getting informed about what is necessary to successfully sell your business. This section should answer a lot of your questions and help you through the maze of the process itself.

Question 1

The first question almost every seller asks is: "What is my business worth?" Quite frankly, if we were selling our business that is the first thing we would want to know. However, we're going to put this very important issue off for a bit and cover some of the things you need to know before you get to that point.

*Important Tip:

It doesn't make any difference what you think your business is worth, or what you want for it. It also doesn't make any difference what your accountant, banker, solicitor, or best friend thinks your business is worth. Only the marketplace can decide what its value is.

Question 2

The second question you have to consider is in 2 parts:

Do you really want to sell this business? If you're really serious and have a solid reason(s) why you want to sell, it will most likely happen.

You can increase your chances of selling if you can answer yes to the second part:

Do you have reasonable expectations? The yes answer to these two questions means you are serious about selling.

THE FIRST STEPS

Okay, let's assume that you have decided to at least take the first few steps to actually selling your business. Before you even think about placing your business for sale there are some things you should do first. The first thing you have to do is to gather information about the business.

Here are 4 items you should get together to begin the process:

  1. 3 years Accountants profit and loss statements or from the time you commenced in the business (if less than 3 years). Include the latest available Depreciation Schedule.
  2. List of Plant, Equipment and Fittings
  3. The lease and lease-related documents including transfers, renewals and disclosure statements
  4. An approximate amount of the stock on hand, if applicable

At BizBrokers “We take the fear and pain out of buying or selling a business”