Selling your business? What should you consider?
When you feel it’s time to sell your business you’ll want the best price for it. And the sooner you plan for sale the better so that your business is in the very best shape to attract an investor.
Lombard Accountants understand that the more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares.
Our practice and staff here at Lombard Accountants means a lot to us and we know that your business will mean a lot to you, but a buyer will have a more rational and pragmatic viewpoint.
Take some time to get your house in order for a potential buyer, so you can present your business as an opportunity. Here’s a list of things to consider from the Lombard Accountants team.
- Invest in adding value – Keep profits in the business, sell assets you don’t use, reduce your personal drawings and plough that money back into the business.
- Work on your documentation and reports – A potential buyer will want to look at your business plan and solid financial reports to ensure they are buying a sound business with attractive profit forecasts.
- Have a proper exit strategy – With a plan that has agreed targets, so you can track and measure whether goals are hit, and a strategy your team can get behind.
- What’s it worth? – The value of something is based on what the market is prepared to pay but the value of a business will also be based on the profit you make, the assets held, intellectual property or what it would cost a potential buyer to build the business up themselves.
- Communicate with the team – Make sure you have communicated with staff and stakeholders for the best outcome.
- Consider where your buyer might come from – Competitors, investors, employees. You may already know your buyer. Make sure you have the help you need to navigate the negotiation process.
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