Business owners are emotionally attached to their organisations as they build them up from scratch and nurture the set-up with passion, ambition and an infectious zeal. Letting go of your own venture is a tough decision as it not only affects the future of the owner but also the employees, vendors and suppliers. Besides, selling a business is a tough cookie to crack if you are on your own. Your organisation is made up of valuable assets such as stock, goodwill, intellectual property and much more. Just the valuation of the tangibles and intangibles can take a toll on you. Thus it is advisable to get assistance from professional and experienced business brokers in Australia to prepare your business for sale. An impressive representation can bring back fruitful results; thus you need to gear up for the handover with all your might and enthusiasm. However, before putting up the ‘for sale’ signage, you need to be sure about your decision. Consult your family, friends and peers about your plan and its financial implications. Once you have deliberated over the decision, start working on the sales process. Here are the seven essential steps that will prep your business for the negotiations.

 

  1. Determine The Asking Price

You may find a few tools online for business valuation, but you may not be the best person to judge the worth of the intangible assets. You need a neutral third-party to evaluate the organisation and come up with a fitting price which is in accordance with the market demand and industry transactions. Do not follow your instincts or let your personal bias get into the way of attaching a price tag to your company. Let the professionals handle this job and provide you with an estimate that allows you to get a figure for the negotiations.

  

  1. Draft A Summary Of Your Business

A summary of the business is the overview of your organisation which must have all the necessary details that a prospective buyer needs to know to make an informed decision. This summary is shared with the potential buyers after they sign the non-disclosure agreement. A seasoned business broker can guide you in the creation of this document as they can point out the weaknesses which can become deal breakers and suggest changes to highlight the strengths of the entity. This document aids in expediting the process as there is no delay in communication and all the standard questions of buyers are answered in advance. It accentuates the unique features such as a strategic location, strong supply chain network, credibility in the market, etc. which create a positive impression on the buyer.

 

  1. Reorganise Your Documents and Data     

Smart buyers are always looking for transparency and want to look at your papers to measure the financial health of the business. Thus it is vital to put all the documents including balance sheets and financial statements in order. Also, the prospective buyer will be conducting the due diligence of your business which will include taking a glance at the leases, debts, equipment, stock, cash-flow, etc. You must take help of your accountant to clean up the books and provide all the business tax returns receipts for the past three years which are arranged in chronological order. As a seller, you must also check the credit-worthiness of the buyer before transferring the lease.

 

  1. Boost Your Sales

Your business brokers will advise you if it is the right time to sell your organisation or not. Usually, people think about selling when the sales are going down, and things are looking bad. However, this is not the best time to put the enterprise up for sale. No seasoned investor or first-time buyer will try to save a sinking ship. Every buyer is looking for a venture which is thriving and promises to grow exponentially in the future. Thus you will have to ensure a positive bottom-line and amplify the marketing efforts to generate more revenue. Make operational changes to get the desired results like changing the menu of your restaurant or getting new equipment in your office. Just get it ready for a profitable sale.   

 

  1. Market Your Business And Screen The Buyers

It is common knowledge that newspaper ads are no longer getting the required enquiries. To find a huge number of buyers in one place and attract them to your proposition, you need to go online and place a business listing. These online sites provide you with professional business brokers who advertise the venture on the site and entertain all the enquiries. They pre-qualify the buyers to ascertain whether they will be able to secure the financing and run the business independently. They connect you with motivated buyers who have the intention of making the purchase. 

 

  1. Negotiate The Deal

Let the professional business brokers in Australia takeover this task of negotiation. The broker will ask the buyer to make an offer and provide the proof of funding along with the same. Prior to the negotiations, both the parties must undertake due diligence to check each other’s financial stability and assess the figures mentioned in the documents exchanged. Both the parties must agree on a number of factors such as the asking price, the settlement period, the deposit amount, training period if required and arrangements for the employees. Usually, the brokers are proficient in closing the deal at the threshold point or above it so that there is no sense of loss in the transaction.          

 

  1. Draft The Purchase Agreement      

The purchase agreement must have all the necessary clauses and must be reviewed by the lawyers of both the parties. It must have accurate and up-to-date details of the assets being transferred, the liabilities and lease of the location, transfer of employees, conditions of dispute settlement, etc. You will have to take care of Capital Gains Tax and Goods and Services Tax if it is applicable to your business. There are certain CGT concessions available for the sale of a business. So keep a tab on the taxes while selling the business.   

 

Conclusion

A little bit of preparation and guidance from the business brokers can make the process smooth and effortless. They can objectively present the business in front of the buyers and get the best price through effective negotiations. So make sure to follow these steps when you plan to put you business up for sale. 

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