Page 6 - SEll Your Business Booklet
P. 6
STEP 1. Planning
Preparing your
business for sale
To maximise the value to a buyer, Timing it right Business or pleasure
planning for the sale of a business If you can, sell when the business Review how unreported cash
should start on day one. is running at peak efficiency, with sales (if any) are managed,
a solid record of profits trending along with any personal items
That’s in an ideal world. But even if upwards. Have you trimmed costs, paid for by the business, such
you’ve never thought about selling increased sales and margins, as travel or entertainment.
restructured and/or reviewed other
before, there are steps you can (and variables to get you there? Separating personal and company
expenditure can make a big
should) take to set you up for success. difference to the selling price.
Are your records in order? For example, a $20,000 trip paid
From cleaning up your records, to for by the company is essentially
avoiding unnecessary spending and For some business owners, their $20,000 off the bottom line and
impeccable, detailed accounts
succession planning – your goal is to are a source of pride; for others… could reduce the sale price by
three to four times that amount.
maximise profit and structure the less so. If you fall into the latter
business to enable you to transfer category, now is the time to get Accounting for taste
them shipshape. This includes
ownership with minimum impact on records relating to contracts, Accounting policies vary widely
operations and profitability. customers, staff, leases, asset – and yours may differ from other
ownership and more. The checklist businesses within your industry.
on the opposite page may help. They may be tax-driven policies,
Ensuring your books are up to resulting in conservative profit
date – with supporting facts and recognition, or earnings driven,
projections – gives a buyer a to maximise profit. Making sure
clear picture of your operation. your accountancy policies conform
We can help you prepare a set to those generally adopted by
of ‘normalised’ accounts to show your industry can increase the
maximum operating profits, as market value of your business.
well as your actual accounts.
This means adding back expenses
or purchases (sometimes personal)
that are not directly related
to operations – and being
7k+ potential buyers.
prepared to discuss these with
owners have trusted
LINK to sell their businesses
4 SELL Y OUR BUSINESS, SMAR TER
