This is an essential part of the process buying and selling a business. Strengths or weaknesses, possible fails or rouge bookkeeping are all examples of things to watch out for. A broker will analyse the data and brief you on any concerns. Then there is what can be improved on, changed or updated. Growth potential and projections will all be poured over by a good broker.
Presenting The Business in a Favourable Light
A good broker will make the business presentable. Every aspect and every nook and cranny needs to be considered before a sale. You must make your business presentable in order to gain the best offer. A broker will take you through what you should look at and investigate any areas that he or she feels need attention.
You may need to repair some equipment for example. The buyer may feel if something is broken then other things may have not been in working order too. A buyer will want to see love and attention poured on every aspect of the business. This will feed them confidence and boost their appraisal.
Every business depends on employees and staffing to succeed. Contracts and wages will need to be considered moving forward. A star employee may not feel comfortable with the new order. You’re selling the embedded success of the business, the staff are part of that. Any issues with possible loss of the human machinery may put off the buyer.
The same goes for the customers. After all, they are the ones providing revenue and therefore profit. A broker will ensure these customers will stay on and continue in the success of the small business. The buyer may already run a successful business elsewhere and know what he or she needs to thrive. The sale price depends on the little things as well as the big ones. Especially in a bustling consumer area like Queensland.
Business brokers will ensure the operation running will continue as is. You may need to agree to continue in some capacity to grease the wheels of change. A well-established business is attractive to a buyer and that buyer needs to know it will remain highly profitable.
Business Paperwork in Order
You’ll need backdated paperwork for at least 4 years and a minimum 2. The buyer will need to see good figures well presented. The bottom line is key here. A good broker will make sure revenue and profit are clearly defined. Financial statements, tax returns, and legal and compliance are fuel for a broker to ensure you the vendor get the highest price.
Exit Plan Strategy
All this preparation works toward the most important thing. An Exit Planning Strategy. Good business brokers will create a good strategy, this work-up will mean better compensation for the seller and a timely conclusion. The outcome is an award with which the broker goes forth to another client. A broker is a good as the last sale. This means total dedication to executing the deal. Bearing this and statistics in mind, a broker with panache can raise the selling price by up to 20% or more.
If you are planning a business sale in the Gold Coast area we are well-positioned and knowledgeable. We serve places like Southport, Burleigh Heads, Robina, Brisbane and all South East Queensland areas. Marc Phillips can deal with any Gold Coast business sale and all the important things that go with it to bring it to a successful sale. He has 15 years experience in a wide variety of company sales. CONTACT Marc today.