Business Sale Preparation Tips

Preparing to sell your business is a critical step that can significantly impact the success of the sale. Which is why preparation is key! The team here at Core Business Brokers are your go-to Sydney Business Sale team. With decades of experience in Sydney business sales, they know how to prepare! Here are some essential Business Sale Preparation Tips from the Core Business Brokers team to help you get started:

Self-Reflection and Decision-Making:

• Before diving into the process, take a moment for self-reflection. Why do you want to sell your business? Ensure that selling is the best move for both you and your business.
• Decide whether you’ll sell the business yourself or use a business broker. Selling independently avoids commissions, while a broker can handle the process for a fee. For many business owners, the broker’s fee is worth its weight in gold – as they take away stress, handle negotiations, provide expert advice along the way and walk you through the paperwork. For most business owners looking to sell, a better sale price can be achieved by utilising the skills of a professional business broker too, which covers their fees (and much more in some cases).

Professional Assistance:

• Engage professionals early on. Hire a lawyer/settlement agent and an accountant to guide you through the entire process, from preparation to finalising the sale. Our team has a network of trusted Sydney business professionals that we can connect you with to make the process easier.
• When searching for a Business Broker, consider their knowledge, experience in Sydney and greater NSW alongside their past successes within your industry. Here at Core Business Brokers, our team has facilitated successful business sales in a vast range of business sectors – click here to organise a chat with us today.
  

Gather Essential Documents and Get Organised:

• Compile financial records, including profit and loss statements, bank loans, forecast financials, and a breakdown of outgoing costs.
• Organise commercial information such as supplier accounts, registration papers, asset details, and insurance information.
• Update operational documents, including business history, supplier lists, inventory, strategy details, and marketing materials.
• Prepare legal documents related to staff and customer contracts, leases, health and safety guidelines, and franchise agreements (if applicable).
• Round up forecasting documents that highlight intellectual property, revenue growth, or favourable market conditions.
• As we mentioned at the beginning of this blog = preparation is key!

Enhance Your Business’ Appearance:

• While a complete renovation isn’t necessary, consider small improvements. Does your business look like a solid investment? Cleanliness, decor, and overall presentation matter.
• First impressions count, so ensure your premises are appealing to potential buyers. Great business sale preparation begins with how your business is portrayed to potential buyers.

Business Appraisal:

• Determine the value of your business. Various methods exist, but regardless of the approach, you’ll need the financial, commercial, operational, legal, and forecasting documents mentioned earlier.
• Be prepared to justify your asking price to potential buyers. This is where your Business Broker shines. Without emotional attachment, they’ll appraise your business based on performance, assets and market conditions (alongside other variables) to recommend a realistic and achievable sale price.

Non-Disclosure Agreement (NDA):

• Interested buyers will want to conduct due diligence. Having an NDA (otherwise referred to as a CDA – Confidentiality Disclosure Agreement) ready for them to sign can expedite the process. Here at Core Business Brokers, we’ll handle all of this for you – and take you through each sale document step-by-step.

High-Quality Photos:

• Capture clear, quality photos of your business. These images play a crucial role in attracting potential buyers.A quality Business Broker will also facilitate this process, either organising a professional photographer or videographer, or by arranging the photos to be taken in-house.

Business Sale Preparation – Key Takeaways

Remember, selling a business involves careful planning and attention to detail. If you’re considering selling, following these tips will help you prepare effectively. And when it comes to finding the right buyer, consider employing an experienced Business Broker who can navigate the complexities of the sale process and maximise your chances of success. Chat to the Core Business Brokers team today, by giving us a call at  (02) 9413 2977. Alternatively, you can email [email protected], [email protected] or [email protected] to organise a meeting.