Selling a business requires a lot of planning and organisational improvement. Make sure that you prepare your business for sale in Sydney the right way to get the maximum returns.
The world-famous city of Sydney is recognised as the financial hub of the entire Asia Pacific region. Its advanced market economy and extensive global engagement make it a prolific commercial landscape. With over 73,900 local businesses and a GRP of $130.22 billion, the city is a haven for budding entrepreneurs, seasoned business owners, conglomerates, and investors. The metropolis experiences frequent buying and selling of businesses because of its dynamic economy and growing demand from businesspersons. If you plan to put up your business for sale in Sydney, you must ensure that it is well-presented for a quick sale. It is essential to get the best price for your venture and to reap the benefits of your financial, physical, and emotional investment in the entity. So here is how you can prepare it for sale.
When you have decided to sell your business and move on with your life, it is time to sit down and determine the value of your company. You must ask your accountant and the business broker to do the job as you have emotions attached to it and may not be able to put the right price tag on it. A professional will calculate the net worth of the business, taking into account both tangible and intangible assets and liabilities. He will also consider the industry trends and the legitimate return on investment.
You need to make your business appear as a viable and attractive proposition to potential buyers. Therefore, you need to work on sprucing up the office space by carrying out repair and restoration of the premises. Also, you should start delegating your work to eligible subordinates and stay on-board only as a supervisor so that the company is no more dependent on you. Boosting profits before the sale is an excellent way to entice aspiring entrepreneurs. Thus, develop strategies that can help in higher yield in the months before the sale.
Put yourself in the shoes of the buyer and consider the attributes that will make you sign on the dotted line. You must prepare a growth plan which will inform the qualified buyers about the ways of expansion. It must give them a roadmap filled with potential opportunities that can be leveraged with an aggressive marketing plan. Showcase the untapped potential of the business that can be easily capitalised by the right buyer.
The financial documents should be organised professionally for the due diligence procedure. You must have all the profit and loss statements, cash flow statements, tax returns and other vital papers from the past three years ready for evaluation. Besides these, you will have to provide details of the lease agreement, licenses, permits, intellectual property, employment agreements, systems, and procedures, etc. Arrange all the paperwork that will be needed during the handover.
Employees are the most valuable assets of a business and they must be informed about the acquisition before the deal is finalised. The transition period can create insecurity and confusion in the minds of the workforce. Make sure that you keep them informed about their status, which involves termination or transfer along with the business.
Your lawyer and bookkeeper will help in determining whether the Capital Gains Tax and Goods and Services Tax apply to the sale or not. Small businesses can avail CGT concessions and must be aware of the tax obligations that will result from the sale, so that they can be met effectively. If you have any pending lawsuits or penalties related to the business, they must be resolved at the earliest.
The business for sale in Sydney needs to be advertised to be showcased as a flourishing entity. You can take help from business brokers or do it yourself by posting an ad on a business listing website. You can also opt for print ads and send the word out in your circle through your colleagues and friends. Process all the enquiries and screen the qualified candidates after analysing their experience and financing sources.
ConclusionIf you have been thinking about retiring or starting a new phase of life, make sure that you prepare your business for sale with the help of the tips mentioned above. It will aid in a smooth transition and getting the right price for the organisation.
