FREE RESOURCES FOR BUSINESS OWNERS
Financial Statements & Cash Flow Forecast Templates
How to Choose Business Accounting Software
Protecting Your Business Name or Idea
Industry-Specific Free Tools & Templates
PREPARING YOUR BUSINESS FOR SALE
Each business is different of course, but there are some common elements to ensuring your business is well prepared to enter into a sale process. They are common sense, but when you are busy ‘running’ your business it helps to think ahead, and plan what you will need to organise, so that you can ensure an efficient process with your business broker.
You should think about the following:
- Ensure your financial statements for the last financial year-end are prepared quickly, so that you have finalised accountant-prepared financial statements for the most recent closed financial year.
- Ensure your management accounts system is up to date and accurate (for example, Xero or MYOB or your other ERP system).
- Talk to your accountant about the fact that you are thinking of selling your business. They should be made aware so they can give you accounting and taxation advice in relation to this. Don’t keep your accountant in the dark!
- If you have significant plant and equipment, think about how it will present in a sale process. Is the maintenance schedule up to date? Is some equipment requiring repair?
- If you employ people, do you have job descriptions for each job role, and an organisational structure chart? If you work within the business, this includes clearly defining the scope of your own role.
- If you have premises, are they are in good order? Dirty, clearly disorganised premises do not create a good impression, no matter what type or size of business you have.
- Do you have a work health and safety policy / plan for employees? If you are a manufacturing business (for example), have you had a workplace health and safety audit at any time in the past few years? A clean bill of health on WHS matters is great reassurance for potential buyers of your business, particularly in businesses that involve workforces completing manual labour or that involve driving or operating machinery or vehicles.These are just a few things to think about when thinking about selling your business. The more organised you are in advance, the smoother the process will be. But rest assured at Bespoke Business Brokers we will help guide you through the process step by step, to help you make your strategic exit. Learn more about our process.