By Rod Russell
Savvy Business Sales

The amount of preparation that goes into selling a business will often dictate weather the business will sell, how long it may take and what most Sellers will say is most important of all how much money it achieves.

Every business owner should have an exit strategy and a business plan. This information can be crucial to monitoring the performance of the business, achieving the owner’s goals and it may well become vital if and when selling the business.

Generally buyers of a business will engage several professionals advisers when they contemplate a purchase.   Accountants, solicitors and financial institutions will need all relevant documentation and information pertaining to a business, if they are employed to make an educated analysis.

Having that information available upfront is paramount. Sellers must understand that full taxation returns, original lease documents and lots more sensitive information will be required at some stage during the transaction. An agent has a much better chance of a result if they have this information compiled upfront. This does not mean that they will give it to anyone that asks for it. Good agents are educated to know when and who to give this information to.

If you are considering selling and you want to achieve good money for a business take the time to get everything right where possible. Be mindful of how it presents, the stock levels, staffing levels, tenure of the premises, debtor levels, financial margins, and taxation implications, diversity of clientele, marketing strategies, cash flow requirements and many more areas that are seriously dissected by buyers and their advisers.

All of these things and much more will come under the microscope, so it is wise to get them in order prior to going to the market. Spending the time required negotiating a lease extension; updating financials, employing key staff members will all boost your chances of achieving a premium result in a realistic time-frame.

If your business is realistically priced the costs and time associated to prepare it professionally should be rewarded tenfold, with a strong sale price within a realistic time frame.

Due to variety of reasons some businesses attract very few inquiries when they are taken to the market. This is the reason why we highly recommend that all sellers take the time required and spend the money necessary to ensure the very best result possible.