Just quietly, I'm now selling my business

“Iconic Cafe now in liquidation” …another business has slipped off the rocks. Another article reporting the owners struggle and how no one wanted to buy it.

“There are two key issues here; one the cafe is no-longer in a “sale-ready” state, and two; it was never marketed for sale. No one knew, and now it’s all too-late!” says Richard O’Brien, Director of nzbizbuysell.

It’s always easier to sell when your business is going well, and you have control over the process. Once you have decided to sell your business, plan it well. If one of your objectives is to get the best price, then you’ll need to consider who the likely buyer may be, and have strategies to target this group. By having your business “sale-ready” and managing the marketing process you can maximise your buyer exposure and price while maintaining confidentiality.

If you want to sell, and want a good price, then you’ll need to tell all your potential buyers you have a business for sale! One or two poorly targeted ads will only expose your business to a small buyer pool, and you could be missing out on your best prospects and a sale.

Promoting your business for sale with the wider market is important for getting your best result. After all, you cannot sell a secret.

Take care with your ad copy and the process, as you may not wish to alert your employees, customers and suppliers yet that the business is up for sale. Selling a business will be one of the most important things you’ll do - you get a single chance to put a price tag on possibly years of effort - and once you sign the sales documents, it’s over.

If you make an effort to understand the steps in selling, of who your likely buyer may be, then careful planning - with the help of a professional advisor, will get you well on the way towards negotiating a price and terms that are suitable to you.

Key points to consider when selling your business.

• Buyers will be looking at cashflow, and to quantify the value in your business.
• Choose experts (experienced professionals) to help you through the process, avoid any pitfalls - legal/ethical or financial.
• Valuing your business - determine a realistic price considering your buyer, the market, and the condition of your business. This is generally a job for the experts.
• Finding a buyer - Create a marketing plan (you may enlist a broker to help), to target your potential buyers. Don’t just tell the guy next door! You need to manage the process, tell people, and promote your opportunity widely through the main “business for sale” websites and any appropriate off-line channels - after all, you want the best prospects for a successful sale.
• Structuring the deal - Identify options as to terms - be it what is being sold, vendor finance, training etc., paying attention to any tax implications. Your accountant and lawyer can help here.

Businesses can take some time to sell - influencing factors include price, type, ease of finance and market conditions. If you’re under financial pressure, don’t wait until it’s too late.

If you would like to know more about how to build the value within your business so you can sell for more, and quicker, then visit nzbizbuysell.co.nz and check out the resources on selling a business.