TOP
TEN TIPS
1.
Keep immaculate records, especially accounts. Anyone buying
your business will want to go through a due diligence process.
Make sure you declare all the takings and expenses. Any
discrepancies in your book-keeping will only serve to give
the prospective buyer more ammunition when negotiating the
price of the business.
2. Ensure
your business is accurately priced for a sale. There is
little point in putting an inflated price on your business
and hoping that someone will pay over the odds. It is important
to remember that purchasers are not fools; most potential
buyers of kennels and catteries will have looked at a number
of businesses and will know if your business is not in line
with the general market.
3.
Introduce technology. Computers are now used far and wide
for invoicing, stock listing and accounting purposes. If
a buyer is already computer literate, your business will
immediately become a more appealing proposition.
4.
Employ the best staff you can. Many prospective buyers like
to come into your business disguised as a customer to gauge
the atmosphere and efficiency of the business before indicating
that they are interested in buying. It is also true that
a lot of new business buyers will want to retain existing
staff to ensure the smooth running of the business. Therefore
it is important to always view staff as a key business asset.
5. Staff,
clients and suppliers can all be unsettled by the impending
sale of a business. Although many owners sell their business
on a confidential basis for precisely these reasons, retention
of staff and suppliers may be important to prospective purchasers
and incentives should therefore be considered.
6.
Review your involvement in the business. Ensure the business
can operate without you - both in terms of management and
client loyalty, and that clients are loyal to the business
and not just to you. You might want to consider offering
to stay on for a hand-over period or perhaps to advise the
new owner on a consultancy basis.
7.
Consider how to maximise your profits in the period leading
up to the sale, but do bear in mind that potential purchasers
may be wary of sharp increases in profits as the result
of stringent cost-cutting exercises. They will need to know
that any increases in returns are as a result of sustainable
growth, not just a flash in the pan.
8.
Many purchasers will want to know the reasons behind the
sale of any business. Therefore you need to have a clear
motive for selling - whether retirement, to finance a new
venture, or perhaps you have developed the business as much
as you want to - against a set of pre-defined criteria.
Make sure you have all the answers to hand.
9.
Once you decide to
sell, you should appoint a professional to do it for you.
There is always the temptation to do it yourself, but a
Business Transfer Agent will market the business professionally,
carefully vet potential purchasers and liaise with all parties
throughout the negotiations, leaving you free to run your
business. Appoint an Agent to handle the sale of your business
who gives you the confidence that they understand the market
and will sell your business for you.
10.
Do remember however that the highest offer isn’t necessarily
the best if it doesn’t result in a sale, and be sure
that any potential purchasers are thoroughly vetted by your
adviser - particularly for their financial ability to proceed
- before accepting their offer. An experienced adviser will
be able to do this for you.
