To achieve the maximum sale price on the sale of your business,careful planning needs to be undertaken from three years out.  Nothing beats involving your trusted business advisor from an early stage, but here is a checklist of what needs to be done in the lead up to sale:

3 years out

– determine what sale price you perceive might be achievable by reference to maintainable earnings

– determine keys risks in the business and what risk multiple might be able to be achieved after risk management strategies implemented

2 years out

- Boost sales and profitability

- Reduce reliance on key personnel

– implement strategies to reduce risks in the business

– systemise where you can

1 year out

- Clean up your small business financials and determine what reports would be advantageous to have in selling your business

- Determine the value of your company

- Prepare your exit strategy and put in place anything necessary to implement it  

- Identify potential buyers of your business amongst staff,suppliers and customers

- Determine method of selling your business and how you will market it

- Get business contracts in order

- Work out a plan for what you are going to do post the business sale, both financially and with   your time

Just before sale

Prepare information memorandum including the following:

-      History and back ground of the business

-      Profitability summary

-      Customer summary

-      Key employees

-      SWOT analysis

-      Key points of difference or barriers to entry

Once you commence marketing your business

Pre-qualify your buyers and have confidentiality agreements signed

Be prepared to negotiate

Be forthcoming with information – fear of the unknown is one of the key reasons why potential buyers get spooked

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If you are thinking about selling your business, Gary is the person to get in contact with. Call our office to make an appointment today!

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