Feb 8, 2016  Natalie Tanne – Mergers and Acquisitions Specialist

Preparing your business for a successful sale is the key to receiving the financial outcome you desire. Who you engage to advise you, impacts the outcome significantly. There are many advisors from Accountants, Lawyers, Corporate Advisors and Bankers, as well as Business Brokers who are well equipped to assist you. However it’s always important to get more than one opinion as sometimes or most often, what you want to hear is what an advisor will reiterate. The truth can be somewhat different from this. Prepare the business with candid advice. The business needs to show stability in its figures with annual growth. The business needs staff and management in place, so not dependant on one owner. The books need good cash flow forecasts, to assure a new buyer a reasonable upside.

Prices quoted.  There is no bank of information on SMEs to establish averages or for that matter a price for one of your competitors. Often clients have been given prices by advisors or vendors, re rumours on the successful sale. Most times these are not accurate. Do not base your knowledge on what you hear rather base it on sound fact, of your own situation. There are so many successful methods to reach a great outcome, find the right person to work with, as the right team significantly changes your final outcome.

Say what you mean and mean what you say. Be consistent with everyone when entering into a process. Answer questions, however there is no need to hard sell to a prospective client. Let your advisor lead the process as they have the experience to assist this process positively. It is advisable to use an advisor you trust and understand, that they have a bank of knowledge and information they can share, with all possibilities to conclude a valuable sale of your business.

Timing is everything when you have one or more buyers wanting to transact. Don’t take too long, as you will lose momentum and buyers along the way.