Steps you can take to maintain your selling price
Are you selling your business? We often see sellers drop their advertised sale price.
Here are 12 items that can assist you in maintaining your preferred selling price:-
1. Information Memorandum (Business profile) – Have a detailed, comprehensive and professional document on all aspects of the business. This cover at least 20 areas of the business and include business history, financials, marketing, systems, sale process, photographs and many other areas. This document should cover questions any prospective buyer will ask;
2. Written appraisal valuation - be able to justify and substantiate the price you are asking with how it has been obtained by providing the method used to calculate the price;
3. Financial Summary – provide a summary of your financials over the last 2-3 years;
4. Addbacks – only allow for reasonable and justified add-backs per industry standards;
5. Truthful and transparent – Be honest and upfront with full details of the business;
6. Marketing and promotion – You need to market and promote the business sale with as many strategies as possible to get to as many possible buyers and investors as possible;
7. Taking of inquiries – have someone independent who can qualify incoming inquiries, ask the correct questions and filter out time wasters;
8. Confidentiality – Ensure all inquiries have signed and agree to confidentiality requirements;
9. Offers – Ensure all offers are provided in writing, and any conditions are disclosed;
10. Form 2 prepared – In some Australian state, any business sale of $300,000 below requires the preparation of a ‘Form 2’ or similar document, part of which is completed by your Accountant;
11. Contract – Have a contract prepared to shorten the period from offer to signed contract;
12. Professional advice – Use someone who is experienced and professional to manage the business sale process and steps.
Whilst some of these actions are small in nature, they can add up and make a big difference. This means you may be able to obtain or get near your desired selling price.
If you'd like help buying or selling a business, raising capital, seeking an equity partner or any other business deal, contact your local Allbiz State Licensee team member at this link - https://www.allbizdealroom.com.au/our-team



