Are you ready to sell your business?

The thought of selling your business has interested you enough to stop and read this post, so I would say you have taken the first step in the process of selling your business.

I’m not suggesting you commit to that decision in any way but when the time comes, this article will answer any of the questions you have and make the entire process easy to understand and navigate.

“What would my business be worth if I sell”?

This would no doubt be the first question you would ask yourself – the thing is, to answer this you need to be at a point where you are happy to sell your business for a price that your buyer is willing to pay. What I mean is, if money is your driving force then you may not be ready to make that move. Your opinion on what you think your business is worth isn’t going to be taken into consideration by your buyers, they will want to see value and an opportunity to benefit from their purchase.

If you would like further information on this, please feel free to click here and book in a time for one of our Bonza business sales experts to contact you for a complimentary appraisal of your business and discuss any influence the buyer market place may have on your business sale.

“Do I really want to sell”?

This question is usually answered – yes, if you have a firm reason to sell. Now you have a solid reason for wanting to exit, and can increase your chances of a sale if you can also answer yes to…

“Do I have realistic expectations”?

Once a buyer has shown interest to purchase your business and confirms this by making an offer. The price becomes somewhat irrelevant because it is easier to negotiate price once we have a confirmed commitment.

“What is the next step”?

Before I go into details… go and grab a cup of tea and put your feet up – you have just made a big decision and I’m about to off load some major incite that is going to be of huge benefit.

To achieve a successful sale there are three key points you need to cover:

1. Your exposure to your buyer market – you need to get the word out about your amazing business that is now for sale and the best place to do that is on the leading business for sale websites because this is the place that serious buyers are going to be searching to purchase. These days the first thing that someone looking to buy a business will do is they will jump straight onto Google and type in “Businesses for sale in (selected area)”. Google then brings up a list of the top business for sale websites based on traffic. The biggest in Australia are SeekBusiness and Commercial Real Estate Business Sales.

2. How your business is represented to your buyers – Finding a buyer is the easy part, it just requires investing into the right websites and time. This step is the one that requires the most attention – you buyer needs to see that your business is represented professionally and that their enquiries are responded to promptly, this will be the difference on whether they lose interest or move forward to make an offer. They really need to see your business presented in an easy to understand document, so they can see clearly all the details, which allows them to decide quickly.

3. Price – As mentioned above, the price you list your business for needs to be appealing enough that your buyer sees value or at least feel confident enough to make an offer.
Please do not stress, this is actually a very simple process and requires little to no effort from you. I will let you know how you can do this shortly…

“What paperwork do I need to get in order before I list my business”?

The answer is – None (initially) You can list your business and get it in front of buyers, creating excitement and interest without any financial documents required. Gathering all these kind documents can come later.

Below is a list of documents that would be required to complete a business appraisal:

• Last 2 years profit & loss statements as provided by your accountant or from your accounting software.
• Current year to date profit and loss report from your accounting software.
• Please provide the amount of any owner’s wages and superannuation if these are included in the wages on the above reports.
• The end date for your lease and any remaining options (if you have a premises).
• The approximate replacement value of your plant and equipment that is going with the sale of your business.

In most circumstances eventually, prospective buyers will want to review your financial figures. They will want to see income and expenses, they want to be able to see that they can make payments towards the business as well as make a living. Unless you’re selling your business close to set-up cost, or for simply plant and equipment, if your business is not allowing somebody to make a living, it is going to be hard to find a buyer who is willing to take that risk – unless priced accordingly of course.
There is a lot of information to take in, it is a big step to sell your business – We get it! But it does not need to be hard or expensive by any means. Assistance is available and Bonza are here to answer any questions you have. When the time comes for you to take this step please check out our complete package inclusions, you will be presently surprised to find that we include the full sales service for a fair fee. We also cover all three keys to a successful sale and take care of all the hard work for you.