What is Best Practice for Owners Who Want to Sell a Business?
The desire to sell a business will be reached for owners who reach a juncture where the money is more advantageous than the ownership.
Despite this demand for a change, there are some strategies that prove more effective than others as far as securing a tangible deal is concerned.
This is an opportunity to see what is best practice for owners who want to sell a business.
Identify The Right Kind of Help
It is incredibly challenging for entrepreneurs and owners who have control of an enterprise to sell a business all by themselves. There are some case studies where this has been achieved, but they are often the exception to the rule. Holding consultations with accountants, lawyers and commercial agents who have experience with company sales is always beneficial. So long as they are trusted and backed by community peers given their experience and resources, it is worthwhile reaching out to have professionals to navigate the details of the sale before putting pen to paper.
Craft a Workable Timetable
It is advised to constituents who want to sell a business to avoid rushing anything on this front, but the deal is also time sensitive enough that any unwanted delays could quash the move altogether. This is where a workable timetable is recommended for participants that want to put the sale into motion. Sit down with all relevant stakeholders and establish a workable deadline, whether that is designed around a holiday, the End of Financial Year or the end of a week where there happens to be some clear air for a suitable transition period.
Target a Quality Buying Demographic
For operators that want to put their business on the market, they need to be able advertise it to the right people. Who happens to be based in the industry or looking to venture into that space? Deciding to establish an advertisement or network the enterprise through particular channels is essential. If all goes according to plan, then there will be multiple bidders who are able to push the asking price up instead of remaining flat.
Have Legal & Contract Terms Secured
Any discussion held with a lawyer or an accountant for those that want to sell a business will often come down to the contract. What are the terms stipulated? Are they legally secure? Is there room for interpretation? Has it been looked over by other legal counsel? There are insurance and tax implications that are involved with this document as the contract of sale dictates how each side comes away from the deal.
Get an Accurate Valuation
Amid all of the concern about the need to sell a business, ultimately this is a numbers game. Owners will often walk away for the right price, yet buyers know that they will only pay what they need to for the asset. This is where an accurate valuation has to be reached as at least two sets of accountants, lawyers or agencies survey the assets, examine the goodwill and take note of the size of the customer base and track record of the brand. Once all of those factors are brought together, a fair evaluation will be reached.
Make Peace With The Sale
It might sound like an obvious point to make, but there have been a number of cases before where individuals are looking to sell a business, only to walk back the call once they see a high level of interest or external factors force a change of heart. Once the decision has been made, it is important to venture forward with the program unless there is a significant change of circumstances. Prospective buyers will see the indecisiveness and that will impact how they engage with the sale.