Sell a Business
Good preparation and thorough planning are essential to achieve a business owner’s objectives when selling a business.
A typical process:
1. Assess & Improve:
- Determine owner’s objectives
- Assess the attractiveness of the business
- Review historical financial data & market sales data
- Establish a price range
- Establish the appropriate time to go to market
- Improve business:
- Presentation
- Financial performance
- Reduce risk & increase strategic value
- Plan owner’s exit strategy
2. Preparation & Planning:
- Obtain a written “Appointment to Sell” as per Western Australian legislation
- Establish prospective buyer profile
- Prepare “Business Information Memorandum”
- Supporting documentation – financial, legal, human resources & operational
- Prepare a marketing strategy
- Negotiation issues
3. Indentify Prospective Buyers:
- Obtaining a “Confidentiality Disclosure Agreement” is compulsory. Refer to the document (click Here) for details of a “Confidentiality Disclosure Agreement”.
- Direct targeting of pre determined possible buyers
- Action marketing campaign
- Meet with qualified possible buyers
- Communicate with owner
4. Action Time:
- Confirm prospective buyer’s intent
- Buyer negotiations to obtain the most suitable offer
- Present the offer for owner’s evaluation & acceptance
- Offer & Acceptance in place (Agreement for the Sale of Business)
- Obtain deposit
5. Execute Contract:
- Work through “Due Diligence”
- Clear general and special contract conditions:
- Finance
- Lease assignment & extension
- Franchise arrangements
- Trials
- Other
- Facilitate settlement
- Obtain settlement
6. New Ownership:
- Handover
- Familiarisation & training
- Facilitate settlement
- Execute exit strategy for seller
Business owners need to be mindful that a well planned and executed business sale may take from three months to twelve months to achieve the desired result.
Information Required: Refer to the following PDF File for details on the Information Required to Sell A Business – click HERE
