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Looking To Sell Your Business This Year? Read This First…

If you’re looking to or thinking about selling your business this year, here’s some good and bad news.

First, here’s the bad news…

If you’re looking to sell within the next 3 – 6 months, you probably won’t get full value, as it takes a good year of preparation before you can actually put your company on the market.

That’s been my general experience over the years.

Now for the good news…

Right now more and more money is lining up on the sidelines looking for good deals. We’re through the worst of the financial crisis and people are now looking forward.

Plus, if you actually use the right process to prepare your company for a sale, you’ll more than likely jump to the top of a ‘savvy buyer’s’ short list.

You see people that buy businesses often don’t just look at one deal.

On the contrary… they look at a whole bunch of them.

And your advantage is knowing that most sellers don’t do the proper “prep” to make the sales process easy and transparent for the buyer.

In other words good deals get left on the table because the seller just hasn’t created enough ‘CERTAINTY’ IN THE MIND OF THE BUYER that their asking price is fair value.

So how can you best set yourself up to get the best deal?

So how can you best set yourself up to get the best deal when you put your company on the market?

Here’s the best  insight I can give you from the years I’ve been helping business owners do exactly that… SELL YOUR BUSINESS IN THE SAME THE WAY AS YOU’D SELL A HOUSE.

Selling a house and selling a business have quite a few striking similarities… and most people wouldn’t ever let any potential purchaser near their home without cleaning up before they arrived!

The same should be true for your business.

To guarantee yourself the best chance of getting the optimum price when you exit you’ll want to run for the next year with a strong focus on the financials and systems. In other words keep your numbers bang up-to-date and document everything.

Using cloud software such as Xero accounts and Receipt Bank will really help in this area and save you hours of manual input.

And when it comes to pulling out KPI’s you can use something like Fathom that automatically feeds into Xero.

A common mistake that’s easily made in this area is getting non-commercially minded staff to collate the financial information during this phase. Instead get someone who is experienced at preparing a business for sale to work with you during this period.

When it comes to the people side of your business, outline the tasks of each role and include key performance targets that clearly establish what is expected within each role and department.

You’ll also want to make sure you’ve got all your key client and employee contracts up to date so a buyer can see you’ve got all the bases covered.

So if you’re serious about getting the best price for your business… first things first…  get your “house” in order over the next 12 months.