Prepare to sell – No Surprises:
In order to achieve the best result from the sale of your business it is imperative that you ensure it is “sale ready” when it goes to market and there are no matters left undisclosed or untidy.
Many sales have been lost by business owners because of lack of preparation or having unresolved issues or simply not advising the Broker from the outset of any matters of concern resulting in the buyer “walking away” from a sale.
There are many aspects to having your business “sale ready” but some of the main items are:
Minimum of 3 years Full Accounts including:
-Profit and Loss account, Balance Sheet, Statement of Cash Flows.
At the very least you need to have the most recent years Profit and Loss Account and a current and accurate Schedule of Plant and Chattels being sold as part of the Going Concern.
If the financial year is well advanced you may need to get your accountant to prepare “management accounts” from Balance date to as near as practical to the date the business goes to market.
All internal systems and records including staff employment contracts need to be up to date and fit for purpose.
Various supply contracts, licenses, franchise agreements’, leases (including permitted uses), etc, relevant to the business, and any and all rights and obligations or necessary approvals for assignment should be reviewed by your legal and/or, financial advisors to ensure a no hassle transfer of the business to the buyer at settlement.
Stock, if any, needs to be checked for age, condition and salability.
How long are the current owners prepared to provide assistance to the buyer post settlement?
This will vary between different businesses and current owner and buyers needs, however the outgoing owner has an obligation to make themselves available, usually post settlement for a period sufficient for the new owner to understand how the business operates.
There are other important matters that owners need to attend to before the business is “sale ready”.
Robert can review and advise on these matters with you.