Selling a Business

You’re not alone. You only have to look in the "Business Opportunities" section of the daily paper on Wednesdays and Saturdays to see a number of business’s for sale.  Buyers can pick and choose from many different types and prices. They all make a profit and are easy to run!!!!  Well.........some are, but how does a potential buyer recognise them? 

Buyers today are better educated and generally more aware of the pitfalls. Buying a business is something they don’t do every day so the logical thing to do is to get professional help when they assess a business. This can involve the Business Broker, Accountant, Solicitor, Finance Broker, Financial Institution and Settlement Agent among others. 

Preparation and planning are the key. Plan well in advance to put your business on the market. This will give you time to compile all the information you need to present to potential buyers. Try and see your business through the eyes of a purchaser and do whatever is necessary to present it in its best light. To give your business the edge over other businesses for sale the following is a list of must haves:- 

At least 3 years full financial statements including Profit & Loss, Balance Sheet and Depreciation Schedule need to be available plus personal tax returns and bank statements. Also year- to-date financials to confirm gross sales to the end of the last month. If your last financial statements are dated 30 June of the previous year how old are they now?

Also, if the purchaser of your business needs finance the more information they can provide a lender the better chance they will have of getting the funds.

For further information on buying or selling a business please contact Tony Romano on 0407 388 139.