When the time comes to exit your business you will need to be surrounded by a number of professionals who can help you transition out of your business. Whilst real estate is quite straightforward, selling a business is a bit different. Finding the right buyer for a business can take a fair amount of time and skill.
The most important thing a business owner needs to remember, it takes time to advertise a business for sale, and sell. You need to be prepared for the 6-12 months it can take to find the right buyer, perform due diligence, negotiate and reach a settlement. Surrounding yourself with the right people will make this journey easier and put you in the best position when selling.
The best place to start is with your accountant. They will be able to help prepare your financials and give you a financial appraisal of your business worth. Remember an accountant deals in numbers and financials, they have very little understanding of the current market conditions and what similar businesses are selling for, this is why you need to also have advice from a business broker.
Accountants will help you understand the financial position of your business, how to limit your tax, review your capital gains obligations, prepare financial summaries and more. Some are skilled in the process of selling a business, but generally, accountants are focus on your tax obligations and financials. But they are a great starting point when starting to sell your business.
Whilst houses have real estate agents, businesses require a different skillset and require business brokers. Understanding business is very important when selling a business. The agent you engage needs to have an understanding of numbers, negotiations, business plans, clientele and so much more.
Business Brokers are the experts at selling businesses. They have the ability to assess your business, provide a valuation, advertise the business for sale, negotiate with buyers and ultimately get your business sale over the line. They do this day in and day out, so they understand the process and what you can expect during the sale. Selecting the right broker is important.
Bsale has a special ‘Find a Business Broker’ section that allows you to look for a specific broker which has the skillset you require to sell your business. Whether it's a cafe or a manufacturing business, finding the right broker to assist you is important.
To make everything legal you will need a solicitor. They will be able to prepare the necessary legal documents required during your sale. Documents such as a Non-Disclosure Agreement, Heads of Sale Agreement, Contract or Sale and any other documents needed to make your sale are legally binding. Engaging a solicitor is vital during the process.
Deciding when is the best time to sell your cafe can make a big difference to the final sale price. Its important to consult with business coaches and exit strategists to determine when is the best time for your, and how to get your business ready for sale. It could involve a 6-month plan just to get the business ready so you can receive the optimal price. There are specialised cafe and restaurant coaches that can assist you.
The team you surround yourself with can make a massive difference. So, create an epic support team that can help make your business sale a success!
Tags: selling a business
Vanessa is the current manager and CEO of Bsale Australia. Over the past 11 years as a business owner, she understands what it takes to grow a ...