Page 7 - SEll Your Business Booklet

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STEP 1. Planning Don’t wing it. Planning

Preparing your Let us sell your

business better.
business for sale

Stay or go? Checklist
A business is more attractive if its TIP Review leased Working with your advisors, LINK can help you
success isn’t solely dependent on and financed assets – prepare the following information, to ensure it’s
the owner’s operational know- you may be better off presented correctly. Financial information must
how, technical skill or personal owning them outright. be current and accurate. If you’re selling halfway
relationships with clients or through the year, ask your accountant to prepare
suppliers. Having an experienced, half-year accounts. (Not all of these will apply to
reliable management team Invest for success your business.)
demonstrates that the business
will remain successful post sale. When looking at a business, Brochures/marketing information of your
buyers will factor in both its debt products or services
Most buyers expect the seller level and asset quality, particularly
to keep working in the business in manufacturing operations. Business organisational chart
for a handover period following Generally, we recommend you Business plan
the sale. This could be anything continue investing in the business
from two weeks to up to a year as if you weren’t selling. Competitor analysis
or longer, particularly if you’re Copy of franchise agreement (if applicable)
critical to the business. This can Will you offer finance? Details of any major strengths and/or
be negotiated and included in the commercial advantages
Sale and Purchase Agreement. To help you achieve maximum
You may wish to stay involved in value when selling, consider GST returns for the current trading
the business indefinitely. Consider leaving some finance in the year to date
what might work best for you, business. It gives the buyer Historical background on the business
before you prepare to sell. extra confidence, knowing
you’ll continue to have an interest Identify non-recurring or non-business-
in maintaining its success. related expenses
Lease details including rent, term,
renewals, outgoings etc.
Profit and loss (P&L) accounts for 2 to 4 years
Schedule of abnormal and/or non-recurring costs
in the accounts
Schedule of plant, equipment and any
equipment leases
Staff employment contracts including
Employee Protection Provision (EPP) clauses
Staff levels, including part-timers
and contractors
Stock value estimate within 10 to 15%
SWOT analysis
Trademarks, patents, licences,
agencies or IP details

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