Selling a business can be a confusing affair if you are not familiar with the process.
To help you off to a good start, here are 5 tips to maximise the value of your business:
- Be prepared to sell
Make appropriate preparations so that relevant information is available when a suitable buyer is found.
- update financial records and documents
- ensure all tax and/or government returns are completed
- Recruit a professional
Recruit a business broker to sell your business faster and increase your return.
A broker will:
- Correctly present your business
- Create tailored marketing
- Access a network of genuine buyers
- Set a realistic price
- Plan ahead
- Seal the deal
- Provide post-settlement support
- Increase efficiency and reduce stress
- Maintain consistent practices
The sale process can take time, so while your business is on the market, continue to operate as per usual.
- Aim to continue improving the business
- Ensuring that business remains steady and growing preserves its value
- Maintain a healthy relationship with both customers and employees
- Set the right price
It is essential to set the right price with room for negotiation, as setting an overly ambitious price will detract potential buyers. Recruiting a business broker can greatly help in this process as they are more familiar with the market state.
- Price paid to purchase or set-up your business is not relevant to buyers
- A broker will recommend the highest achievable price with justification
- Buyers must feel that they are being offered good value to maintain interest
- Market your business
Marketing is an essential investment when selling your business.
- The longer your business is on the market, the more its price will drop
- Listings in newspapers yield very few enquiries and are virtually obsolete
- Online marketing using websites is an effective strategy, many top-performing sites only allow listings made through a broker
- Networking a database facilitated by a business broker is also a relevant method
If you are interested in finding out more, do not hesitate to contact us at First Choice Business Brokers. Simply call or email to obtain a strictly confidential, obligation-free business appraisal.