How to Prepare your Business for Sale
Preparing to sell your business? Think carefully about your reasons for selling, your goals for the future and how you can pull your business into shape before the sale (if it isn’t already). You’ve worked hard and deserve to be rewarded by achieving a fair price.
A good strategy is to give yourself plenty of time to prepare your business before you advertise it for sale.
You could focus on:
- Showing year-round profitability.
- Reducing your costs.
- Building a strong management team.
- Maintaining high-quality products or services.
- Developing a unique product or service.
- Expanding your online presence.
- Creating a strong customer base to reduce your reliance on 1 or 2 large clients.
- Maintaining premises and making sure assets are in good condition.
- Signing shorter-term or longer-term leases – whichever makes your business more attractive to buyers.
- Using formal, written contracts rather than informal handshake or verbal agreements.
- Developing comprehensive business, marketing and succession plans to enable your staff to run the business when you sell it.
- Settling any outstanding legal or tax matters (e.g. warranty claims).
Improving these areas should strengthen your business, and make it easier for you to attract serious buyers.
Written by Noel Currie, SBAA member and Director of Australian Business Sales Corporation Pty Ltd.
If you would like help and advice when selling or buying a business contact Noel and his team on 1300 722 556 or email firstname.lastname@example.org