Published on 13/07/2016 by Punchmedia

How to Get the Best Price for Your Business

When it comes to selling your business there are many questions to answer. When is the best time to sell? How do I get the right price for my business? We decided to ask the experts. Savvy Business Sales Principal, Rod Russell was only too happy to guide us through the process.

Q: What do business owners have to do to sell their business for the best price?

A:

To maximise the price an owner achieves for the sale of their business they need to plan ahead with a good exit strategy. A good exit strategy will ensure the business is attractive to the market and will fine tune key areas. Below are some examples;
  • Financial statements are clean and up to date
  • A good lease is in place with tenure
  • No major investments are required (fitouts or new equipment)
  • Franchise or license agreements have tenure
  • Supply agreements are solid
  • Key staff are well trained and in place
  • Stock is current and at the correct level

Q: Are there some key items/points a business owner must address/do in order to get the best result?

A:

The best result will only be achievable if the seller is transparent with the information that they provide the broker and the buyer. Even the smaller transactions have to withstand rigorous due diligence investigations, if anomalies are found buyers will run, or alternately, they will expect a price reduction.

Q: Is there a best time to sell a business?

A:

Some industries sell better at certain times of the year, depending on when they experience their busy and quiet time. We find buyers like to purchase in the lead up to the busy times and for a large percentage of the businesses we sell this is in the lead up to Spring. This gives them the warmer months, Christmas and Easter periods to get a good kick start to their new venture.

Q: Any other advice?

A:

We recommend all owners have their business prepared for sale even though they may not be considering a sale. Unfortunately numerous business owners have to sell unexpectedly due to illness or reasons unforeseen. This scenario will have a serious impact on the sale price if they are not prepared, so be mindful as you never know what is around the corner.

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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