5 tips for selling a business in South Australia
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Deciding to sell your business can be a daunting task, especially if you’ve never experienced it before. However, with the right preparation, it can actually be exciting to begin this new venture. If you’re thinking of selling your business in South Australia, there are some things to keep in mind before you start. Today we’re looking at five tried and true tips for selling your business in South Australia.
1. Have your business valued
First things first, you need to have a good idea of how much your business is worth so you can put it up for a realistic price. Your business is your baby, so you’ll often have a warped perception of what it’s worth. Some business owners believe their business is worth more because of all the time and effort they’ve put into it, while others undervalue their hard work. Getting a business valuation will take any of these concerns away and give you an unbiased decision on what you should be charging. An experienced business broker or advisor can help you value your business by using your past, present and future numbers. Having a valuation will also let prospective buyers know that your business is worth the price you’re asking.
2. Consider your motivations for selling
Deciding to sell your business is a huge thing, so it can take time to determine whether your motivations are sound. This is the number one question potential buyers will ask, so make sure you have a good answer! Things like poor performance and plateauing numbers will likely put buyers off, so we recommend fixing these issues before putting your business onto the market. Buyers will see these numbers anyway, so it’s best not to lie or sweep them under the carpet. Working to get the performance up will help you get the best price, but if you don’t want to put the extra work in or simply want to get out quickly, you’ll need to come to terms with the fact that this can hurt your final negotiations.
3. Using a broker
There are two ways you can sell a business – by yourself or with a broker. You can navigate the selling process yourself, but one important thing to consider is that this will take time away from you and how much effort you can put into running your business. Using a broker offers numerous advantages, including more time to focus on your current and new ventures, a larger pool of prospective buyers, assistance in negotiating prices, and experience in closing deals. Brokers will also have plenty of knowledge on the legalities of selling a business, so this is another thing you don’t need to look into. If you’re happy to shoulder all of the burden yourself, it’s a viable option to sell your business on your own – however, if you want expert help and advice, we highly recommend hiring an experienced business broker.
4. Prepare all necessary paperwork
Before selling a business, there are certain documents you need to prepare. These include things like:
- Profit and loss statements
- BAS returns
- Contracts
- Current leases
- Licenses
Buyers will want to see these things to get an idea of the day-to-day performance of your business, as well as get a feel of its financial health and stability. So, as you start getting your business for sale, make sure your paperwork is up to date and organised. If you choose to use a broker, they can also help you with this process and even offer templates for the majority of the more common documents.
5. Find a pool of trusted, prospective buyers
Even if you do all the work and get your business looking sparkling before putting it on the market, it can still be tricky to find the right buyer. The best place to start is closer than you think – tell friends, family, and colleagues that you’re looking to see. Who knows, maybe your new buyer will already be in contact with you! However, if you still need to look further afield, look at the marketplace and where your business fits. A broker will have a list of existing potential buyers and better access to the market, so if you want a quicker sale, this is often the best way to go.
Get in touch with an experienced broker today
Selling a business is a huge decision with a lot of factors to consider, but with the right preparation, you can make it a very lucrative investment. A business broker can limit your stress and effort requirements while also keeping the process as smooth as possible. This will also give you more time to make your business as attractive to buyers as possible. Ready to get started? Then we recommend hiring a qualified business broker in Adelaide. Their team of credible and experienced brokers can offer expert advice when it comes to selling a business in South Australia.
