If you’re about to sell your business, you know it’s a major life milestone and often, an emotional one. After all, you’ve likely poured years of energy, late nights, and sacrifices into building it.

When it comes time to sell, the best way to protect that hard work is to take control of the timing and the process as much as possible.

For many business owners, that decision is taken out of their hands. A sale might be forced by a life event, or they come to the realisation that they’ve simply “had enough”. In these cases, the business often isn’t sale-ready and that can have a real impact on its value.

To make sure you get the most when you sell your business, it’s important to plan ahead. Start by focusing on these six key areas:

 

1. know your pre-sale numbers

 

Start with a clear understanding of what your business is worth, both in the market and to you.

This is where you need to get professional advice. A business sale advisor, accountant or business valuation expert can provide you with a realistic view of what buyers may be willing to pay and highlight any areas for review that could increase the business’s value before you sell.

At the same time, think about what the business means to you personally: the income it provides, the flexibility, or the value it brings to your life.

Knowing both numbers helps you make level-headed decisions when it’s time to talk numbers.

 

2. know your post-sale numbers

 

Once you’ve got an idea of what your business could sell for, the next step is understanding what you’ll actually walk away with – your post sale proceeds.

That means factoring in tax, transaction costs [such as sales commission, legal and accounting fees] and any personal wealth or estate planning considerations. 

This is where solid professional advice really matters, not the kind of “advice” you pick up from your mates over a BBQ. Getting no advice or incorrect advice could cost you dearly. Working with experienced advisors gives you clarity and confidence in your numbers, so you can plan your next chapter with certainty.

 

3. take a buyer’s view of your business

 

Put yourself in a buyer’s shoes. If you were buying your business today, what would you see? This exercise is about taking the steps necessary to present your business in the best light possible. 

It goes beyond having up-to-date financial accounts. Look through your operations from front to back, reviewing areas such as your: 

  • systems,  
  • processes,  
  • staff,  
  • commercial agreements, 
  • plant + equipment,  
  • licenses + approvals, and 
  • client relationships.  

Think of it as a pre-sale due diligence check. Take a critical eye across the business: Are there gaps? Are there inefficiencies or over-dependencies? 

This pre-sale self-audit helps you identify weak spots before buyers do and fixing them can directly improve your sale price.

 

4. have up-to-date financial information

 

If there’s one thing that kills deals fast, it’s delays – especially when buyers are waiting on key financial information.

Work with your accountant to make sure your financial records are current, accurate and tidy before you go to market. Buyers will want to see up-to-date figures throughout the process and being organised not only builds confidence but also keeps the sale moving steadily.

 

5. review your involvement

 

A business that operates smoothly without you is far more valuable.

Ask yourself: how dependent is the business on you? If the answer is “a lot,” that’s a red flag for buyers and they’ll be less willing to pay what you think the business is worth.

Look for ways to delegate responsibilities, systemise operations, and document key processes before you sell.

Demonstrating that your business can operate independently will improve its appeal and sale price.

 

6. have the right team around you

 

Finally, surround yourself with the right professionals.

As touched on earlier, you need an experienced business sale advisor. You’ll also need an accountant and solicitor who have business sale transaction experience and understand what it takes to see a sale through to completion.

These advisors will be invaluable throughout the entire sale journey.

They work on your behalf to:

  • protect your interests,
  • facilitate a smooth transaction, and
  • focus on achieving the best available deal for you.

The wrong advice [or unnecessary posturing] can stall or even derail the sale.

 

we’re here to help you get sold 

So, there we have it, 6 key considerations for you to think about when preparing to sell your business.

As a final reminder, make sure you:

  • know your pre- and post-sale numbers,
  • take a buyer’s view of your business,
  • make sure your financial information is up to date,
  • review your involvement, and
  • have an experienced team in place.

If you’re ready to sell your business or would just like to know more about the process, you can send us an email at B.Dean@businessdepot.com.au or give me a buzz personally on 0417 886 352.

 

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