Business Sale Preparation

Business Sale Preparation

 

Cabrera Partners is the perfect choice to help you sell your business. We have more than 20 years experience in business and we are connected with the right people.

Here are some tips from the professionals.  Cabrera Partners have formed this list from our own extensive experience and based on respected business brokers that have been in the industry for decades.

  • Don't try to sell it yourself.  Statistics say that this is the most dangerous way to sell.
  • Tell the staff.  Cabrera Partners can arrange a facilitation of this meeting.
  • Smarten it up.  Develop an action plan to address key strengths and weaknesses.  This can often be done in a cost effective manner, but don’t be afraid of investing in a higher selling price or a faster sale.  Do the sums yourself.
  • Be prepared to spend the money to promote the sale.  It's almost impossible to sell a secret!
  • It is tempting to embellish the businesses potential to prospective buyers.  Always be completely frank and honest with buyers. 
  • Insist that your broker only brings fully qualified buyers to you.  Have your prospective buyers talk with Cabrera Partners early in the negotiations. They will discover everything they need to know about the business one way or another and it is always more credible to hear it in the right context from an expert source.

Cabrera Partners has compiled this information for you to help you on your journey.  Of course Cabrera Partners can facilitate all of this on your behalf and take the uncertainty, worry and time out of it for you so you can focus on keeping your business on the right track.

Premium quality businesses typically sell within 40 days.  Although this is the norm, once you are committed to sell - stick to it.  It could be a long haul.  If your business doesn’t sell as fast as you like, re-visit your marketing strategy.  Putting your business on, then off, then back on the market too often can devalue it.

Have all of your documentation ready.

Cabrera Partners can prepare a set of financial statements specifically for the purpose of promoting a sale, adding back and adjusting for owner specific expenditure, interest, depreciation, non-recurring items etc.   Have ready the following :

·         Previous 3 years' Profit and Loss Statements

·         Copy of previous 12 months' Business Activity Statements

·         Copy of last 3 years' tax returns

·         List of Aged debtors - 30, 60, 90, and 90+ day accounts

·         Monthly turnover in bar chart form

·         Detailed list of plant and equipment, and fixtures and fittings including full motor vehicle details

·         Signed copy of lease on premises with any deed of assignment, extensions and covenants

·         Signed copies of leases on equipment

·         Copy of any franchise or licensing agreement

·         Full details of all personnel (length of service, qualifications, rate of pay, number of hours worked per week)

·         Business name registration details

·         Australian Business Number (ABN)

·         Australian Company Number (ACN)

·         Brief description and history of the business

·         Selection of photos of the premises

·         A comparative market analysis, a business assessment and selling price appraisal ready 

·         Have a working business plan

·         Have a working current marketing plan

·         As an absolute minimum have a SWOT analysis ready

 

Get Cabrera Partners on board to maximise the value of your business and enhance the prospects of a fast and hassle-fee sale.