Preparing your business for sale
When selling your business there are several stages that need to be completed in order to achieve a successful outcome. Typical steps include:
- valuing your business
- preparing your business for sale, including taking steps to increase its value
- taking early tax advice to highlight issues which might affect your deal later – vital if you want to minimise the tax burden
- identifying potential buyers
- marketing your business
- meeting and negotiating with potential buyers
- completing legal due diligence with the buyer
- finalising the sale agreement and transferring ownership
In order to maximise the value of your business, it is worth spending some time prior to the sale getting your business into shape. This could include cutting costs, reducing debts and reducing excess stock to get your finances into good order. Potential buyers are also likely to require detailed financial information, including audited accounts and forecasts before they will consider making an offer.
Look objectively at every aspect of the business through the eyes of a prospective buyer. The website, your office building, your factory, your position in the market, your branding, your marketing materials, your staff, contracts, documentation and filing systems Just as in selling a house, it is often the little things that can kybosh a sale.