Preparing Your Business For A Sale | 5 Steps

Preparing Your Business For A Sale 5 Steps

The sooner you start preparing your business for a sale, the higher the value of your business when you sell.

Hoping to sell your business in the next five years? We’ll help you get your business in order and come up with a sale plan that delivers the best possible sale price. 

Selling your business is a big move for any owner. You’ve built this company up, scaled it and put years of hard work into making the business a success story. So, when the time comes to sell, you’ll want to know that you’re getting the best price, and the best future for your legacy.

We’ve outlined five ways on how you can start preparing your business for a sale so you can maximise the value of your business, with practical steps for making your company the most attractive prospect on the market.

5 Steps To Prepare Your Business For A Sale

In preparing your business for a sale, the first thing to underline is that selling a business is rarely a fast process. Most owners will begin planning their sale years in advance, working to an exit strategy that sets out all the key milestones. Your aim is to leave the business in great shape, with stable finances, a solid team and a customer base that will continue to provide solid revenues for years to come.

So, how do you achieve these goals when preparing your business for a sale?

1. Assess your reasons for selling and your desired timeline – what’s the key motivation for selling your business? Are you retiring, looking to move on to other opportunities or hoping to unlock your equity? Once you know your reasons, you can decide on some core goals for the sale, and set a realistic timeline for the sale.

2. Get your financial house in order – doing your financial housekeeping’ will mean preparing financial statements, submitting outstanding tax returns and making sure you have access to any other documentation that potential buyers will want to see. You may also want to work with an M&A expert to discover the company’s true market value.

3. Make your business attractive to buyers – any buyer wants to know they’re taking on an attractive business proposition. Making the business feel more attractive means improving your marketing and sales strategies, beefing up your operations and ensuring you have a positive cashflow position. You should also think about creating a transition plan for the buyer, so the handover is as smooth as possible.

4. Find the right buyer – it’s important to feel like you’re handing your legacy over to the right owner – and getting the price you need. This may involve working with a business broker or marketing your business yourself. Make sure you vet potential buyers carefully to ensure that they are a good fit for your business and your existing team.

5. Negotiate the sale terms – achieving your desired price could involve a fair amount of negotiation. You’ll need to sit down with your buyer to discuss purchase price, payment terms and other conditions of the sale. Be prepared to compromise and be willing to walk away from a deal if the terms are not right for you.

How do you increase the value of your business?

To increase the value of your business, focus on optimizing financial management, building a strong brand, implementing effective marketing and sales strategies, enhancing operational efficiency, prioritizing customer satisfaction, fostering innovation, investing in talent management, exploring diversification and expansion opportunities, ensuring legal and regulatory compliance, forming strategic partnerships, and preparing for potential exit strategies. Regularly reassess and adapt your business strategies to align with market dynamics and customer needs, seeking professional advice when needed.

How do you make your business more attractive for potential buyers?

To make your business more attractive to potential buyers, focus on optimizing financial performance, maintaining transparent and well-documented financial records, and demonstrating a strong track record of profitability and growth.

Develop and strengthen your brand to enhance market recognition and customer loyalty. Ensure operational efficiency by streamlining processes and investing in technology. Foster a positive workplace culture and talent management strategy, as a skilled and motivated workforce can be a valuable asset. Diversify your customer base and revenue streams to mitigate risks, and establish a strong online presence. Comply with all relevant legal and regulatory requirements, and be prepared to present a clear and compelling business plan that outlines growth potential and future opportunities. Building strategic partnerships and preparing for a smooth transition during the sale process will also contribute to making your business more appealing to potential buyers.

How do you prepare your business for a sale?

Preparing your business for a sale involves several key steps.

Begin by conducting a thorough assessment of your financials, ensuring they are well-organized and transparent. Address any outstanding legal or regulatory issues and enhance the overall operational efficiency of your business. Strengthen your brand and market position through strategic marketing initiatives. Diversify your customer base to showcase a stable and broad revenue stream. Implement a solid talent management strategy, demonstrating a skilled and motivated workforce. Consider engaging professionals, such as business valuators or brokers, to accurately assess the market value of your business. Develop a clear and comprehensive business prospectus outlining your company's history, growth potential, and future opportunities. Finally, establish a well-thought-out exit strategy, ensuring a smooth transition for both the business and the potential buyer.

Talk to us about preparing your business for a sale

If you’re intending to sell your business in the next five years, it’s important to start planning now. Coming up with a sale plan and a robust exit strategy takes time, as does sorting out the business housekeeping and finding the best possible buyer for the company.

As experienced advisers in many business sales, we’ll help you:

- Get organised, locate the relevant documents and improve your record-keeping.
- Clean up your business and address any legal or financial issues
- Come up with a detailed sale plan and help you market the business
- Expand your business network, to find the best buyer for the company

Following these steps will greatly increase the market value and price of your business.

Get in touch to talk about how you can start preparing your business for a sale.


Sell your business | business.gov.au
Selling your business | business.gov.au

Acro Accounting & Financial Planning (AAFP) offers a one stop solution right from accounting, taxation, financial planning to other business advisory services. As Certified Practicing Accountants (CPA’s) and professional tax advisors, we pride ourselves on being experts with the latest developments relating to business and taxation. We as professional public practice firm, provide high quality taxation and business advice to our clients through a personalised service at competitive rates.

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