When it comes to selling your business, it’s important to understand the process and actions required for a seamless and successful transaction. Selling a business in Queensland includes multiple stages including appraisal, drumming up interest, negotiating, and more. Today we’re looking at the process of selling a business to help you in your newest venture.
Is selling the right option?
First off, consider why you’re selling your business. Not only will sellers often ask why you want to sell in the first place, but you also need to be sure you’re happy with walking away from the business you built. If you’re selling for negative reasons such as poor performance or financial difficulties, be prepared for this to influence the final price. However, if you’re walking away for a lucrative opportunity, this might make the sale even more valuable.
Are you willing to shoulder all of the burden?
When selling a business, there are experienced people out there who are waiting to help. Consider hiring a reputable business broker to assist with your sale, who can help you understand the legal and regulatory requirements, offer advice, and provide market insights. You can certainly do it alone, but consider the time required - which will be taken away from running your business. A business broker lets you continue day-to-day operations without stretching yourself too thin.
Why do you need to value your business?
Valuing your business before a sale gives you and your potential buyer invaluable information that’ll help you both going forward. Getting a professional valuation looks at multiple factors to determine how much it’s worth, as well as projections for the future. This means that you can put an accurate asking price to make sure you’re getting the right price. You’ll also know what your business is worth without worrying about over/ underselling yourself, making you less likely to accept lower deals.
How do you attract potential buyers?
You can’t sell a business without a number of reputable buyers who are actually interested in what you’re offering. Unfortunately, putting a business up for sale also often attracts plenty of time wasters, which can be frustrating when you’re trying to navigate the selling process alone. This is one of the areas where expert brokers shine - they can help pick out true buyers from the people who aren’t actually in the market. Brokers also often have a list of prospective buyers to notify of your sale, which can usually attract a buyer much quicker if you were to do it all yourself.
How should you navigate negotiations?
Negotiations are one of the most important parts of selling a business - and they can be the most daunting, too! Being a good negotiator doesn’t always come naturally, so it pays off when you work on this skill. You can practice with a partner, your broker, or even with yourself in the mirror. When negotiating, make sure you provide only accurate and truthful information to avoid misleading your buyers. It’s also important to comply with any state and territory requirements in regard to the information you provide to buyers, so research this before beginning the process. An experienced broker would be able to help you with negotiations, too.
How do you plan for the transfer?
Once you’ve successfully sold your business and all the contracts are signed, it’s time to get ready for the transfer! This includes managing your employees, informing them whether they’re transferring with the business or not, addressing tax and legal issues, and more. Leases, licenses, and permits will need to be transferred. You remain responsible for lease agreements and obligations until they’ve been successfully transferred, so don’t forget to look after these until the sale is completely finalised. Once this happens, you’re free to walk away! Congratulations.
While you might think the work ends after agreeing to a sale price, transferring everything from your name to the new owners takes a lot of time and effort. A broker can help you with this, so you can focus on your next move instead of your old venture.
Get in touch with an experienced broker today
Selling a business is hard work, but sometimes it’s best for you and your business. A business broker can help boost the outcome of your sale, while also freeing up your schedule to focus on making your business as attractive as possible. If you want to get the best deal, check out Brisbane based business brokers. They offer expert advice and tailor-made support for selling businesses in Queensland, helping you negotiate the best price for your hard work.