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Obtaining Top Dollar This is a great time to sell. With unemployment soaring, ex-pats returning, and positive immigration there is increasing demand for businesses with genuine profits or proven potential. Buyers are cautious and conservative so you need planning and preparation to maximise the price you receive – and to minimise any problems in the process. 7 essential steps to achieve the best result are: 1. Have up-to-date financial information and be able to point out those discretionary expenses that are not strictly necessary to produce income, i.e. your “perks”. 2. Identify and protect your “intangibles”. These are where most of the value of your business lies, e.g. brands, contracts, databases, systems, relationships, etc. etc. 3. Understand the “market value” of your business. Price it too high and serious knowledgeable buyers won’t even consider it. Under-price it and you are giving money away. Businesses do not have a precise value, and price may vary from value – but protect yourself with an expert opinion. 4. Have a good reason for selling. “Why are they selling if the business is that good?” is the second question we are asked. If you have a genuine reason and offer on-going assistance and full training the buyer will feel more secure and pay more. 5. Have systems and operation manuals in place. Again, these comfort the purchaser and are one reason why franchises appeal to certain nervous buyers and command premium prices. 6. Top price is a team effort. List with an experienced professional business broker who will liaise with your accountant and your solicitor to protect you – and let you get on with what you do best – running your business. 7. There are only two reasons that businesses don’t sell - price and marketing. Professional brokers employ a multi-pronged strategy to give your business the widest exposure to potential investors. Newspaper advertising is still important, major internet sites, direct mail, and database marketing are all in the mix. We understand the importance of confidentiality and all marketing costs are at our expense, i.e. no sale, no fee. |
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