After years of hard work in achieving success, any business owner will want to sell for the most significant profit. However, the success of this sale is dependent on multiple variables. Business owners can make better choices on the best time to sell their business with professional assistance and the support of sound financial data.
When purchasing such a significant asset, buyers will consider the business and the owner when gathering data for their decision and offering price. This is why when you strive for a successful sale, it is best to approach the process critically and without emotion.
There are several factors to consider when choosing to sell your business. Here are a few boxes to tick to ensure you make a successful sale to the right buyer for the right price:
- Know your business value
Unlike the sale of property or other commodities, business sales offer high value and excellent growth potential. With the correct management, this asset could yield tremendous wealth that will extend further than its existing financial statements.
- Have patience for the time frame of the sale
The estimated time frame for successful business sales is three to five years from the initial selling decision. This lengthy process makes “waiting for the right time” a risky tactic, especially as a growing vs a distressed business is far more attractive to buyers.
- Avoid setting a predetermined price
Although it may seem counter-intuitive, entering the market with a predetermined price can set you up for failure. The price a buyer is willing to pay will always depend on what they are prepared to spend based on their view of your business’s value.
- Maintain good governance
Maintaining strong governance allows you to provide necessary audit trails, and other important financial information, for potential buyers. This will assist you in confidently and successfully pitching (and defending) the potential and value of your business.
- Put the necessary effort into your selling pitch
Do your research to determine the point of interest or differentiator that makes your business worth purchasing. Draw emphasis to these unique selling points to focus buyer attention on the appeal of your business.
- Consider how to replace yourself
To make a successful sale, you need to ensure that your business can efficiently operate without you. Whether you are looking to build your business or be self-employed will determine whether you need to plan for succession once the sale is completed.
At MMS Group, we have a long-standing history of assisting small to medium-sized businesses throughout their lifecycle. We harness our experience and knowledge necessary to help business owners tick the boxes to achieve a successful sale. For trusted accounting services from our team, please get in touch.
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