Selling your business maybe something you have only just started to think about, but it is so important to set these thoughts on the right path. Vendor Business Broking can offer you the advice and guidance you need right now to make sure that selling your business is the right decision. If so, we will guide you every step of the way.
Lets face it, businesses are not like property, they contain a degree of difficulty to promote, and take time to sell. Vendor can help you in more ways than one when selling your business.
Strategic planning and marketing are among the top factors that are going to get your business sold successfully.
Vendor believes in effective marketing and we have the skills to back that up.
When planning your strategy and campaign we will ensure that you have the very best:
We want to see your business running like clockwork, buyers will want to inspect businesses running at their busiest times. Make sure things are tidy, well presented and organised. Excellent external and internal presentation is imperative as is all documentation you present in the process of selling your business.
In the new millennium your website is now your front door. It is the first place people will go to find out more about your business. Vendor Real Estate can help bring your website up to speed and ensure a professional, user friendly and informative site. Likewise with your Facebook and social media activity – we can advise you on what you should be doing and how to do it.
Honesty with buyers is critical, trust is such an important factor when introducing a buyer to a business sale. The buyer will be cagey and sometimes untrustworthy of you from the outset. You must be compassionate and open at all times. If a skeleton comes out of the closet mid-sale, it could jeopardise the entire sale and leave the buyer wondering what else is wrong with your business.
Getting your business market-ready is just part of the process, from here, your Vendor agent will plan a cut-through and effective campaign that will reach potential buyers and draw interested parties to enquire about your business.
There are many factors that will decide the marketability of your business, at Vendor we can assist in assessing the viability of the sale your business taking into account these vital areas:
Certain industries attract certain types of buyers, but if you are in a growth industry, then you are far more likely to attract the keen eye of many buyers. Talk to Vendor about how we can help assess your industry and it’s current and future performance.
Are you a home-based business with virtually no assets? Are you a service business with few assets or a retail or manufacturing business with significant assets? The value of your assets will be a big deciding factor in the price of your business.
Particularly if you are a retail business or relying on the local market and passing traffic, your neighbourhood and its facilities are going to make a big difference to the end asking price.
Your management structure, your staff turnover, the skill levels of your employees will all count when calculating an end figure for your business. Vendor can discuss with you how these factors can affect the price.
Are you in high demand? Is your competition gunning for you or do you just experience a little friendly competition? Perhaps you are in an unstable market? Where you sit in the market is another vital factor that can raise or lower the value of your business.
Do you have a broad range of product lines or are they very limited? How many services do you offer and to how many different types of markets or locations? What about export? Do you deal with international markets or just remain in the domestic realm? You will need to have all this information available when a valuer assesses your business.
The terms of sale you are willing to offer potential buyers will also affect the price of your business, as will the cash required to get a foot in the door. If your buyers are relying on debt to finance the purchase of your business, then the state of debt capital and loan markets are going to have a big influence on a buyers capability of purchasing.
It’s the single most important element in any business sale. It’s the profit margin in your business that will be the deciding factor in your sale, do not lose sight of this. Overpricing your business will slow your sale down. Your asking price should be directly related to your profit margin – the higher that is, the higher you can price your business.
Every business is different and yours is no exception. You need a customised strategy and marketing approach that will suit your business and the type of buyers it will attract.
You want to feel in control when you put your business up for sale. Make sure you’re fully market-ready, open disclosure is the only way to gain buyer confidence and sell your business. Document everything and then act. Don’t procrastinate, when the time is right set the wheels in motion.
You want to know where you stand as far as tax, GST, CGT etc goes. Make sure you have a business savvy accountant who can advise you on all possible tax implications.
Once you’ve made the decision to sell your business, set yourself apart from any emotional attachment you may have to it. You’re selling your business, not your home – emotion doesn’t come into it. Your emotions may tell you the business is worth more, but in the end, it comes down to what the figures and valuation are telling you.
You want the important people in your life on your side before you start this process. To avoid any nasty collisions half way through your sales campaign, make sure you have the full support of your spouse, partner, or important team members right from the get-go.
Start off on the right foot. Trying to do it all on your own usually leads to a bad or no outcome at all. As mentioned earlier, talk to your accountant and your lawyer, and getting the advice and assistance of a non-biased and professional business broker makes absolute sense – Vendor Business Broking is an excellent choice.
