| The First Step: |
Before you even think about placing your business on the market, the first thing you have to do is to gather together some essential documentation about the business:
- Three years Profit and Loss statements;
- BAS statements for the last four Quarters;
- A complete list of all Plant and Equipment;
- The Lease and any lease-related documents;
- A copy of the Franchise Agreement, if applicable;
- An approximate value for any Stock on hand, if applicable
Make sure the financial statements of the business are presentable, current and as accurate as you can get them. If you are halfway through the current year, ensure that last year's figures are available plus any for the year-to-date. Don't panic if the bottom line isn't what you think it should be. By the time all of the owner’s discretionary items are added back into the bottom line, the situation may look quite different. | |
| What Do Buyers Want to Know?: |
Prospective buyers want to do their own thing - be in charge of their own destiny! Money is important, but it's not usually at the very top of their wish list. In order to pursue the dream of owning their own business, buyers must have enough confidence in your business to justify the "leap of faith" necessary to risk buying it. Buyer will almost certainly want to know:
- How much money is required to buy the business?
- How much is tied up in Stock?
- Will the seller train and stay on for a while after settlement?
- What makes the business different/special/unique?
- What further defines the product or service? Bid work? Repeat business?
- What can be done to grow the business?
- What can the buyer do to add value?
- What is the profit picture in bad times as well as good?
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| Eliminate the Surprises!: |
| No one likes surprises - most of all potential buyers. Before you put your business on the market, review every facet of it and remedy any problems that could have an impact during the sale process. Whether legal, accounting, environmental, or anything else - solve it now! | |