SO YOU WANT TO SELL YOUR BUSINESS – HERE’S 13 KEY QUESTIONS TO CONSIDER FIRST
If you are thinking about selling your business, there are a number of things to consider first.
It should never be a ‘knee-jerk’ decision when it comes time to sell. You need to decide on things like if you actually should sell, when is the best time to sell, and what you need to consider before selling, among many other considerations.
Here are 13 key points to consider when starting to think about selling your business:
1) Start your planning early. The sooner you start, the better your chance of a successful outcome.
2) Is it the right time to sell? You should be looking to sell when your business is on the ‘up and up’…not when it is declining.
3) You need to have a clear understanding of your goals. What are your financial needs in the future, how will the sale impact on your family, do you intend to keep your family members in the business and what will be the impact on your employees?
4) If family members are to remain in the business what positions would they hold? Would there likely be sibling rivalry to consider?
5) Do you want to be involved in the business once it has been sold. If yes, then how long are you prepared to stay involved?
6) Who is most likely to buy your business?
7) What key staff should you retain to transition through to the new owner? How do you do this?
8) Do you want to retain a financial stake in the business?
9) What are the key value drivers in your business? How do you identify these?
10) Do you have a strong management team or a 2IC who can run the business without you?
11) Do you have my systems, processes and procedures in written form? If you went on holiday for three months would the business still be functioning the same as you left it?
12) Is your business reliant upon one key customer? Could the business survive without this customer? How do I diversify my customer base?
13) Do you have any unresolved issues which could be ‘deal-breakers’ and interfere with gaining a successful sale?
Remember that selling a business and selling a house are similar in a lot of ways -- and most people wouldn’t ever let people tour their home without making some cosmetic changes and cleaning up before offering it for sale.
So, if you need help to get your business ‘sale-ready’ call us first. We can help you to plan your exit and address all these issues, and more. There is no obligation to call us for an initial chat. Just follow the link and book a 15 minute appointment that suits you.
We look forward to hearing from you soon.