7 ways to get best price for your business

BUSINESS BROKER GEOFF BRACEGIRDLE SHARES SOME OF HIS MANY YEARS BUSINESS EXPERIENCE WITH THOSE THINKING ABOUT SELLING THEIR BUSINESS

1. Price it right
If you price your business too high the serious buyers won't even look at it. Price it too low and you are throwing away hard-earned money. An experienced business broker can guide you on what the market is paying for similar businesses to yours and what else is on the market (your competition).

2. Present it right
You will get a better price if your business is sparkling clean and tidy - right from the signage to the interior, office, and storage areas. Your plant and equipment should be in good operational order and repair.

3. Prepare for sale
Buyers (and their accountants) will want to see up to date figures - financial accounts, daybooks, banking, and GST returns. Also, leases should be available for inspection and have a reasonable term to run. Being ready with this information keeps the sale moving along.

4. Allow time to sell
On average, businesses take 3 to 4 months to sell. If you have to sell in a hurry you are in a weaker negotiating position and likely to get less. Sell at the right time for you.

5. Write down your systems
Show the prospective buyer how easy it will be to take over. List your suppliers and major customers, the jobs to be done, the hours of operation, service providers, and what records must be kept.

6. Be totally honest
When discussing the business with a potential buyer, tell it "warts and all". Even if it is only a small fib that the buyer catches you on, you will lose their trust - and probably the deal. Worse, if it is a large lie (a 'misrepresentation') then you could end up in court. We live in an expensive and litigious age and there is all sorts of legislation affecting business sales.

7. Use a business broker
Do what you do best - carry on running your business in the best way possible. An experienced business broker can guide you on pricing, advertise and market your business widely, maintain confidentiality, qualify genuine buyers, protect you from the legal pitfalls, produce offers and prepare contracts - and use their negotiating skills to get you the best possible price.