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

25 February 2020

If so, here’s some good and bad news. First, 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 experience over the years.

Now for the good news... Right now, more and more money is lining up on the side lines looking for good deals. 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 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 when you put your company on the market? Here’s the greatest 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.

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. 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.