Preparedness for sale is a critical component of maximising value on exit and this is why we say business owners should be setting up their businesses for sale from the moment they establish, or purchase, them.
After all, you never know when someone may approach you about buying your business, or when unforeseen circumstances may force you to sell.
In this 'perfect world', well-prepared scenario:
- important business structures, systems and processes would be carefully devised, executed and recorded from day one;
- succession plans would be in place and understood by senior members of the team;
- clearly worded partnership agreements would reduce the chance of misunderstandings on exit... and so on.
A previous JPAbusiness client is a good example of why it pays to be prepared.
This multi-generational family business received an unexpected approach from a potential buyer and was quite unprepared to enter sale negotiations.
They did not have written procedures for many elements of operations, including pricing, project pipeline and marketing.
As a result, these written documents had to be created, complicating and extending the due diligence process which, in turn, delayed the sale.
You can read about the experience in our free ebook: Three sides of the business sale story.
Free resources to help you prepare
We have produced a number of free resources to help our clients and readers with business sale or transition preparation, including:
- How to prepare your business for sale ebook
- Selling a Business Planning Sheet
- Vendor Due Diligence Checklist
- How NOT to sell a business ebook and more…
Take a look at our Resource Library for the full list of free resources and don’t be caught unprepared.
Sale support available
If you feel you would like support with the process, an experienced business advisor will be able to guide you in setting up your business so it is ready to sell or transition at any time.
For more information or advice, contact the team at JPAbusiness on 02 6360 0360 for a confidential, initial discussion.