Some of you may be considering selling your small business and all of the major impacts this will have on your finances and lifestyle. This is generally something that does not happen very often, and therefore you may not be very experienced in the best strategies around preparing the business for sale.
Today we discuss the risks involved as the seller but also for your buyer, and how the understand and mitigate those risks.
To prepare your business for sale, you should consider two key elements which will have a major impact on your result.
Positioning the business to the market
This is about doing what you can to maximise your chances of selling. It involves taking a good look at how you are operating, removing or resolving any problems that may impede a sale, defining your competitive position within the market segment and ensuring that your business benchmarks well against others in the market. You will identify the best time to sell, the best strategies to take it to the market and who the likely purchaser will be.
Structuring the deal
This is about how the business sale transaction will occur, and includes considering the price for the business, terms and conditions of sale, contract terms, and structuring the sale to ensure it is as tax effective as possible for the vendor.
If you are thinking of selling your business, your planning should start early. The expertise of a business broker may be instrumental in helping you get an understanding of the value of your business and the best way to structure the deal. Please get in touch with us if this is something you are considering, and we can direct you to a broker who may be able to help. We can also help you prepare your business for sale to maximise your result.
Keep an eye on our YouTube channel as Sheree has some advice about valuing your business in today’s market, which should be uploaded in the next few weeks.
