Every business owner, at some stage, will look to exit their business. The average lifespan of a business owner in Australia is about 5 years, at this point, business owners start to consider their options in regards to exiting.
There are many things you can and should consider in order to prepare your business for sale. From our experience, the more information we have about your business when we list it for sale, will achieve a quicker result and often for a much higher price ( than businesses with missing, incomplete, or unsatisfactory information )
It is important for you, the business owner, to consider using a Licensed, Accredited and Professional business broker to achieve a sale for you. Trident Business and Corporate Sales are just that. We have the experience to market and advertise your business. We screen potential buyers and only disclose your private business information to serious purchasers, thereby saving you the time of doing this yourself. As brokers, we have hard nosed negotiation skills and can usually negotiate a price for your business over and above what you may be able to do yourself. One reason for this is that there is no emotional attachment to your business by us, and this comes to the fore during negotiations, especially on price. Since we are not emotional during discussions, we can keep the momentum moving forward and build interest in the sale by various purchasers. We have a database of people who we have screened and identified as serious purchases. Your business will be presented and marketed in the best possible way to ensure the best possible outcome for you.
A typical business sale will include the following stages
- Listing the business and obtaining the authority to sell it.
- Obtaining all relevant paperwork – lease, financials, equipment list.
- Investigating and collating the info – producing a detailed information mem and establishing where the business sits in the market with respect to price.
- Assembling a marketing campaign which is targeted and specific for your particular business.
- Following up leads and inquiries ensuring confidentiality is adhered to at all time.
- Contacting our database of suitable buyers and presenting your business to them.
- Ensuring followup occurs from the interested parties, often liaising with their accountants, lawyers, banks, etc and answering questions.
- Conducting business inspections with buyers and you, the vendor.
- Addressing further concerns and issues while commencing to close the deal if at all possible.
- Liasing with the vendor regarding offers made and possible settlement terms.
- Once an offer is accepted, ensuring momentum continues and parties sign off on the deal as soon as possible. Deposits paid are held in trust until settlement.
- Liasing with the landlord and or franchisor to gain approval for the purchaser. Business sales are almost always conditional on this. Further negotiations and problem solving with lawyers, accountants, and other parties who may be involved in the transaction.
This is simply a snapshot of what is required during the sale and settlement of a business. Remember, if it loses momentum and one small part of the deal is missed, the whole transaction could fail. Every business transaction is different, so make sure you employ a business broker you are comfortable with and will get you the result you are after. Call us now for an obligation free discussion and business appraisal.