MAXIMUM SALE VALUE TIPS
1. HAVE A GOOD REASON FOR SELLING
No doubt the first question you'd ask when buying a business would be “How much”? This would be closely followed by “Why are they selling”? Knowing that you're going to be asked this question make sure you have a logical answer ready to address the query.
2. BUYERS EXPECT VERIFIABLE FINANCIAL CLAIMS
Buyers expect that you are able to prove the revenue you claim. If you can't substantiate the income buyers will not want to pay for it.
3. HISTORY IS HISTORY
Buyers are interested in the performance of the business at the time of sale and the immediate past performance of the business to determine value. Growth trends help improve value so providing this information can assist with buyer confidence.
The truth is always going to surface, so be upfront about everything from the beginning. ·
6. BUYERS PAY FOR PROFITS, NOT SIMPLY SALES
Sure, revenue figures may sound good, but when it comes down to it the only number that matters is the profit or “cash surplus” to a working owner that a business makes. ·
7. NON – COMPETITION
Expect that the buyer will insist on all directors and shareholders entering into a non-competitive clause, often called a restraint of trade, that ensures that directors and shareholders will not compete in the same industry. ·
Buyers will want to know exactly what they are buying before they make an offer.
8. KEEP YOUR BUSINESS WELL MAINTAINED
Once you make the decision to sell make sure you keep your business rolling and up to date.
9. PREPARE YOUR LANDLORD FOR A SALE
Landlords can be deal killers. Buyers need to know if the lease will be assigned or a new lease needs to be negotiated. ·
10. LIST WITH A REPUTABLE BUSINESS SALES COMPANY