Is Now the Right Time to Start Selling A Business ?

Is now the right time to start thinking of selling a business?  The answer is not a simple yes or no because there are factors to consider.  One factor is the reason for selling a business in the first place.  This is why it is at your best interest to assess your reasons first,  before moving forward with the selling.  Is it part of your exit strategy? – To cash in and start your retirement?  Do you want to embark on a different business venture?  Or you just think you need a break and selling just seems like the best move. Or you have acquired too much personal debt that you need to liquidate your assets. Your reasons for selling will somehow dictate the business’ selling price you will be happy with, regardless of its true value.  It will also determine  the selling time frame.

Right timing when in selling a business  is also determined by the current economy.  How many investors actually trying to  acquire a business?  What is the average market price that they find reasonable? Another factor is whether your business is ready for the market.  Selling a business takes certain preparations in order to be able to sell it at the right price.  Business valuation is not simple either. But it is possible to improve the value of your business.

These are just a few things you can work out with your business broker. Things such as determining your goals, and evaluating the current status of your company – your product or service, your cash flow, business structure, financials and your current clients.  When selling a business, it is good to be open with the person who will represent you and your business, and that is your business broker.  He or she will be able to market it well if there is open communication. 

Selling a business successfully therefore, is not just about the right timing but whether you sign up with the business broker who is experienced enough to see you through – from initial preparations to the close of the sale.  This means that the business broker is able to assess whether there is a current market for your business at the price you are asking for.  He would be able to direct to the proper valuation companies, prepare marketing strategy plans, prepare contracts and mediate for you.  And most of all, is able to determine which prospective buyers are the right fit for you based on the goals you have set.

Preparing To Sell Your Business and Dealing with Business Brokers

 

If you own a business in Sydney or the anywhere in the NSW, and is thinking of putting up your business for sale, you need to prepare before you contact any of Sydney’s business brokers.

Plan Ahead

Businesses merge and are sold all the time and for varying reasons.  Sometimes it’s the only choice for it to survive, and sometimes it’s because the owner needs to be more liquid to chase another business venture.  And sometimes, the offer is just too good to pass up and you have another business idea up your sleeve anyway.   No matter what the reason, it is better to be prepared for any eventualities, questions and documentations that may be required.

Identify realistic targets

Before you talk to your business broker, do your homework first.  Sydney has a number of great business brokers but it is important to do our part. All the preparations should be geared towards making your business as saleable as possible.  And in business, careful planning is a good way to go.

Planning begins with a goal. A goal gives you a reason to move ahead, planning gets you there.  Set your target timeline and have set reasonable target price.  It takes a year or two to prepare your Sydney business into marketable one, especially if your financials is not up to date.  A year or two is enough for you to build a good financial profile that can help your Sydney business brokers sell your business and the buyers to make decisions easy.

Make your business look good on paper

Consider then, what makes businesses look profitable? Buyers look at the company profile, steady cash flow, marketability of the product and service.  Your company profile should be well written, straight forward and should have important facts which include your perceived market share, your client base, summary and overview of cash flow and inventory levels.  Your financial statements should be as comprehensive as you can make it. 

Look for the best business brokers

Once you have prepared yourself, it’s time to choose from several Sydney business brokers, its better to deal with local business brokers as they know the market well.  It is better to look around when you are not pressured to sell your business immediately.  A decision made in haste is always a bad one.   It is important to sign up with Sydney business brokers you are comfortable with and gives you the guarantee that they can make a sale within a given amount of time.  Be wary of those who promise that they can sell at a high price, you may end up waiting for a long time.