Whatever your reasons for selling your business, your greatest ambition will be to achieve the desired selling price. Selling a business is not always straightforward which is why you should consider a few things to help make the process work better for you
1. Ensure all your financials, tax compliance, and company administration is up to date
This will leave prospects feeling confident without delaying the due diligence process. In addition, have an NDA (non-disclosure agreement) handy for potential suitors to sign prior to showing any financial data.
2. Prepare a list of insights into your business, as well as the future of your industry
List opportunities for growth and how these could be executed in the future. Some good examples include, but are not limited to, demonstrating a low turnover of staff and legally binding contracts for your clients. This secures future business with the personnel to deliver.
3. Review your company profile
Your website is generally the first destination of an interested prospect who is doing early-stage research and it is the easiest way to gain or lose credibility instantly. It is essential to ensure that you have service offerings, company information is up-to-date, and that the site promotes an identity that reflects your business.
4. Don’t leave it too late
It can be consuming being a business owner, but you should always be aware of your exit opportunities. Try and diminish your role over time and consider the structures of your business to ensure it can grow without you.
5. Know your reason for selling
Be articulate and assuring.
6. Understand your terms
Terms can have a tremendous impact on price. Are you willing to stay on and run the business? Are there family members who you would like to continue in a capacity? Would you be comfortable with deferred payments? Would you accept an offer of an Asset sale? Terms are always negotiable, but it is important to clearly understand what you would be willing and able to accept prior to entering a negotiation.
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About the Author
Jean-Pierre Pharo left the corporate investment banking life in London, to follow his passion as an entrepreneur. After a few years in Johannesburg, running a family business, Jean-Pierre decided to relocate to Cape Town. This decision brought a slew of questions. How to sell the business in Johannesburg? Where to look at opportunities to invest in Cape Town? Through a frustrating search process on how to initiate the selling and buying process, coupled with a total lack of relevant marketing, the idea of BizList was born. As the co-founder of the company, Jean-Pierre takes care of its national growth and business planning. Follow BizList on Facebook.
