Selling your business is a big undertaking. You’ve spent many long hours, over months and years, building a successful enterprise. It’s important to be well-compensated for all the time, energy and effort you’ve put in, and that means it’s important to choose the right team to sell your business.
Yes, it’s possible to sell your business on your own, but appointing specialists to sell the business for you makes the process more efficient and more likely to be successful. It also ensures that you won’t fall into any traps that professionals are used to avoiding. The right team ensures you find the right business broker to prepare an accurate appraisal and, with them, develop the right information to get the best price and conditions possible.
So, who do you need on your team?
A Business Broker
Your business broker is the architect of the process and the marketing expert in your sales team. The broker will work with the other professional members of your team and ensure confidentiality as you put your business on the market. Their databases and resources are accessed to prepare an appraisal so that you can agree on a target value before you commit to the sales process. Their processes allow them to advertise and market your business without letting competitors, customers, suppliers or employees know that you’re planning to sell.
A good business broker will also have a large network of people who are looking to purchase a business. They pre-qualify buyers, ensuring you only need to get involved with buyers who are serious about purchasing.
Experienced business brokers also understand the conditions normally attached to a business sale and both negotiate the sale and prepare the agreement for sale and purchase.
An experienced business broker will help you achieve the maximum price for your business while leaving you free to run day to day operations.
An Accountant
Your accountant should know the financials of your business just as well as you do. When it’s time to sell your business, all that knowledge is going to be essential.
At progressive stages of the engagement your buyer will want to view profit and loss accounts, tax returns, balance sheets, bank statements, the depreciation schedule, accounts receivable and payable and valuations of equipment. Your accountant is the person who can gather and prepare this information while you continue to run your day-to-day operation.
All these details are also important when valuing your business. An accountant can help prepare a financial forecast to show potential buyers how successful the business is expected to be in the future, which may help you gain a better sales price. At the end of the transaction, an accountant can help with the tax implications of the sale and advise you on structuring for the future.
A Lawyer
A lawyer is important at the beginning and end of the process. You should select a lawyer experienced in business sales. The conveyancing lawyer you used for your house sale may not have the specific, relevant experience and skills required for the sale of a business. Choose carefully. Again, there is paperwork that the buyer will want to see. This includes leases, licences, patents and trademarks, employment agreements and records, business registration, insurance policies and any liabilities that may be relevant to the sale.
When your business broker presents a written offer on behalf of a buyer, you will take legal advice before accepting or countering. Your lawyer will double check that the agreement is compliant and that your interests are protected.
Your Bank Manager
Your bank manager knows your business well. It may be that bank advice is useful when your buyer is considering finance or debt arrangements. It is sensible for your bank manager to have a good line of communication with your accountant and your business broker as the sales process develops.
It’s important to continue running your business during the sale process; a well-run and successful business is one that is attractive to buyers. You, the business owner, are the expert in running your business. Bring experts into your sales team to take care of selling your business while you concentrate on having an excellent business to hand over to the new owner.
If you would like to know more about selling your enterprise business, or preparing for maximum sales value, please contact our corporate business brokers today.
