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What business sellers should be aware of

Posted by BenchmarkBusiness on March 15th Brad Hunt Knights Jersey , 2017

What business sellers should be aware of

Kiss …. And Just Do It !!!!

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 who want 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 major investment decision. Only a small percentage are truly entrepreneurial. For the remainder security and employment will be important ownership motivations.

Business owners need to be aware that most prospective buyers are risk-averse and should prepare and present their company for sale in a manner that given the maximum comfort and security to the buyer.

Below are some time-tested tips we have shared with business owners seeking to maximise the price they receive when they exit their company: –

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 buyerProvide up-to-date financial records – the buyer (and his accountant) will want proof of profits and trends. This includes BAS + PTL’s.Have a good reason for selling – the cautious buyer will want to know why you are selling such a ‘goldmine’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 buyerHave 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 William Karlsson Knights Jersey , or private plantPrepare 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’ operationIdentify 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 Max Pacioretty Knights Jersey , software, websites, supply contracts Oscar Dansk Knights Jersey , customer relationships, trained workforce, licences Paul Stastny Knights Jersey , and a multitude of other valuable assets that do not appear on the balance sheetPresentation counts – clean sparkling premises, a pleasant ambience, and enthusiasm impresses prospectsList with an experienced broker – an experienced specialist can appraise Oscar Lindberg Knights Jersey , 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 and have their company in saleable shape at all times in case the unexpected happens.

Bruce Rylance
Exclusive Broker.

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