A Quick Guide to Preparing your Business for Sale
Sales Don’t Always Happen Quickly
Allow enough time to sell. Typically a sale will take ‘months’ not ‘weeks’
Do Not Pressure Buyers
Buying a business is a big decision for most people. Buyers will generally be suspicious if you pressure them to buy. They need you to be honest with them and give them information and time to properly consider their options
All Advertisements at the Same Price
You should not enlist the help of others to sell and then advertise the business yourself for a lower price.
Make the Asking Price Realistic
The value of a business is calculated differently by different people. For businesses sold in leasehold premises, as a rule of thumb, buyers will generally be attracted to a return on investment (ROI) of around 2 years or less.
Offers will be made through your broker. Let the buyer make the first offer and don’t be too quick to reduce the price too much. If you have set the asking price about right, the buyer will know this.
Have Your Financials In Order
Electronic copies of the profit and loss statements for the last completed two years, and your currently monthly summaries of income and expenses
Decide what Assets Stay and Go
Produce a list of what is included in the sale. If possible, remove the assets not included in the sale from the premises
Ensure Your Licenses are Current
Generally they don’t cost a lot, but if a buyer knows that your licenses have expired or don’t cover the business adequately, they will use this to leverage the price down a lot
First Impressions Count!
Clean and Tidy your work areas and fix minor defects. Nobody likes a dirty and/or untidy shop
A Picture Pains a Thousand Words
Obtain some professional photos for advertising purposes
Ensure staff are correctly trained and that they are competent without your direct and frequent input. Buyers will be cautious about buying a business that is reliant upon the current owner
When you think you are ready to sell, look at your business as if you are the potential buyer of it. Consider addressing the problems you see
Enlist the Help of a Professional
Contact us today by email – email@example.com, or by phone during normal office hours on +66 2 001 9847
Written by John Walker, for Asian Business Brokers © 2015
16 December 2015