Selling a business? This is what you need!

• Date
  21 November 2023
• Category
  Guides & Helpful Hints
• Author
  Signature Acquisitions

The process of selling a business could be viewed as an overwhelming experience, particularly for those who have never done so before, having invested years of hard work. However, we are here to guide and simplify this process. To enable us to do so, certain prerequisites need to be fulfilled beforehand, facilitating a seamless transition. This article will detail everything you need to know on how to sell your business successfully.

Accounts

Prospective buyers will require access to a minimum of three years' worth of business accounts. While providing additional years' worth of financial statements would be beneficial, three years is the minimum recommended. If your business accounts contain multiple profits, turnovers, or expenses, it's crucial to separate them. It's advisable to discuss the optimal approach with your accountant. As the accounts are a critical aspect of your business and play a crucial role in determining its value, it's imperative to have them readily available. A transparent and well-organised financial statement would enable buyers to understand the company's financial performance and make an informed decision about its potential.

Images and videos

In the present era, visual content holds significant value as people are drawn towards high-quality images and videos, which could be instrumental in effectively marketing your business. By showcasing your business in a more comprehensive manner, potential clients would be able to understand the complete opportunity of purchasing from you. In the retail space, providing a walk-through of the space from the outside can prove to be beneficial as it gives people an idea of the look and feel of the business. High-quality videos and pictures are also essential for advertising, as they can significantly enhance the reach of your posts. It's worth noting that people tend to appreciate aesthetically pleasing visuals, and by providing up-to-date, high-quality content, you can showcase your business in the best possible light.

Websites

In the case of a business being listed for sale, potential clients usually visit the website first to assess the company's offerings. It's crucial to have an updated website that can provide an immersive experience to the viewers. This gives a clear idea of the business's current standing, which is essential to impress potential buyers. Fortunately, creating a user-friendly website is easily achievable through various online platforms or professional web designers. Even a basic, well-designed website is preferable to having an outdated one or none at all.

Socials

It's imperative that any social media accounts associated with your business are active and up to date. Neglecting them renders them useless. Social media platforms are one of the primary means by which people encounter your business, underscoring the importance of maintaining a positive online presence. Poor engagement and outdated information can negatively impact the perceived value of your business to potential clients. Conversely, a robust social media presence can drive sales and increase traffic to your business. With a staggering 2.76 billion daily active users on platforms like Facebook and Instagram, not utilising these channels can put your business at a disadvantage. In today's highly competitive market, a strong online presence can make or break a company depending on your offering.

Business Valuation

Before placing your business on the market, it's imperative to have it valued. Typically, your accountant can handle this task provided that all financial accounts are current. It's recommended to include a detailed explanation of how the valuation was determined. This is a common question from prospective buyers.

Lawyers/Advocates

Pre-selecting a lawyer in advance for your business sale can expedite the process. Once the sale is agreed upon, there will be less delay if you have already established a relationship with a lawyer. Reach out to your chosen lawyer and provide them with a preliminary draft of the ideal sales contract. This will facilitate the process when the time comes to send the contract to the buyer.

Hand over process

It's important to determine the type of handover process you prefer when selling your business. Do you prefer a clean break, once the business is sold, with no further involvement? Alternatively, would you be willing to serve in an advisory capacity for several months, to ensure a smooth transition for the new owners? It's important to make these decisions upfront and include them in the contract for the sale of your business. This approach will prevent any ambiguity and ensure all parties are on the same page. By deciding on the type of handover you desire, you'll be better prepared to answer these questions and include them in the initial sale document. It's prudent to engage a lawyer to assist in drafting the sale contract.

When considering the sale of your business, it's essential to present it in the best possible light to secure the highest possible sale price. Prospective buyers will evaluate several factors before seeking more information and asking further questions. Therefore, it's essential to make a good first impression to attract their attention.

At Signature Acquisitions, we offer comprehensive support throughout the process of selling your business, from start to finish. Our approach emphasises doing the necessary work before putting your business up for sale, ensuring that potential buyers can obtain the required information efficiently.

If you wish to learn more about our services and how we can assist you in selling your business, please feel free to contact us for a confidential consultation.