What you need to know about selling your business in 2023
There’s no denying it. Talks of high interest rates, tougher lending criteria and even a recession had become common watercooler topics by the end of 2022. But in 2023, the most important question is: What do all these things mean for you? We sat down with LINK Waikato’s Sales Manager Rick Johnson to delve a little deeper.
“Businesses have always followed cyclical trends generally driven by a number of factors. They could be environmental, economic or as we’ve seen over the past few years, a mass global event” explains Rick, adding “The key to getting the result you want is to be prepared, well in advance.”
Throughout 2022, we saw huge activity in terms of businesses coming to market. The key driver for this has been ongoing work between business owners and LINK Business Brokers. “The brokers are working with a lot of vendors, providing appraisals and giving advice around how to best prepare your business for sale” says Rick.
If you’re looking to exit your business in the next 1-5 years, here are some Rick’s top tips:
- Get your books looking good. You’re making a steady profit now and you should be able to clearly show a purchaser that this will survive the sale process.
- Involve the pros, early. Have an up to date financial report and let your accountant know you are considering selling. They can often provide advice on taxable considerations that can affect the final sale price.
- Find out what your business is worth. One of the most important parts of any sale decision will be the value question. Working with a Business Broker to get an independent value appraisal goes a long way. They can also work with you on strategies to maximise the future value of your business.
“A lot of LINK Brokers have had their own businesses and business operational experience. They are also experts in their own industry segments. So, we’ve got a very wide coverage with experienced brokers with industry specialisation across all the aspects of businesses”, Rick mentions.
Your LINK Business Broker can provide an independent appraisal based on LINK’s proprietary valuation tool, comparative business sales and their own experience. LINK also has an in-house Business Finance Broking team. Spring Loans are experts in business loans and have helped secure finance for countless successful sales. This makes LINK a ‘one-stop-shop’ for preparing your business for sale, getting the best value and making sure the deal is done the right way from the start.
So, if you’re thinking about selling your business in 2023, talk to a LINK Business Broker today!
