What business sellers should be aware of

What business sellers should be aware of BY http://benchmarkbusiness.com.au/

Our business plan for 2017 is… “Kiss… and just do it!” Ours is a simple problem-solving business matching owners wanting to sell their business and buyers whowant sound investments. And keeping it simple (Stupid) is our plan for 2017.What Business Sellers should be aware of:70% of business buyers are first-time business owners and for most it is a majorinvestment decision. Only a small percentage are truly entrepreneurial. For theremainder security and employment will be important ownership motivations.Business owners need to be aware that most prospective buyers are risk-averse andshould prepare and present their company for sale in a manner that given themaximum comfort and security to the buyer.

Below are some time-tested tips we have shared with business owners seeking tomaximise the price they receive when they exit their company: –1. Price the business right – businesses do not have a precise value and the price achieved will depend upon the motivations and negotiating skills of the parties. However, an experienced business broker can appraise a reasonable range and allow for the premium buyer2. Provide up-to-date financial records – the buyer (and his accountant) will want proof of profits and trends. This includes BAS + PTL’s.3. Have a good reason for selling – the cautious buyer will want to know why you are selling such a ‘goldmine’4. Offer assistance and security – offering full training and on-going support post- sale plus an extensive non-compete (or restraint of trade) clause comforts the buyer5. Have a complete list of assets – be prepared with a list of plant and equipment that will pass in the sale plus a clear list of leased, loaned, or private plant

6. Prepare operating manuals – document all systems and processes, contacts for suppliers and service providers, and answers to FAQs. One of the main reasons franchises appeal to certain careful buyers is their ‘turn-key’ operation7. Identify intangible assets – these days intangibles comprise the bulk of value in many businesses. The buyer needs to be aware of these. They may include branding, software, websites, supply contracts, customer relationships, trained workforce, licences, and a multitude of other valuable assets that do not appear on the balance sheet8. Presentation counts – clean sparkling premises, a pleasant ambience, and enthusiasm impresses prospects9. List with an experienced broker – an experienced specialist can appraise, market, and negotiate the sale of the business to achieve maximum price while allowing the owner to do what he or she does best – get on with running the business and maintaining it in tip-top condition.

Every business owner should have an exit strategy alongside their business plan andhave their company in saleable shape at all times in case the unexpected happens.Bruce RylanceExclusive Broker.Businesses for sale quick links:Businesses for sale Gold Coast | Businesses for sale Brisbane | Businesses for saleMelbourne | Businesses for sale Adelaide | Business Brokers Brisbane | BusinessBrokers Gold Coast | Business Brokers Adelaide | Business Brokers Melbourne