How to sell a business in Australia
Selling a business can seem like a daunting task, but understanding the steps in a business sale can make it much more manageable. Here’s a straightforward overview of how the process typically works:
Understanding your ideal Outcome
The first step in selling a business is to clarify your goals and desired outcomes. Do you want to sell quickly, or maximise price, or are there specific criteria you want met, especially in terms of how your business and staff will be treated post-sale? Also, considering your selling price goals and any other expectations you have from the sale.
Preparing for Sale
Before you put your business on the market, it needs to be prepared for sale. This means ensuring your financial records are up to date, any legal issues are resolved, and your business is looking its best both online and offline. Think of it like sprucing up a house before selling it.
Valuing your Business
How much is your business worth? This is a critical question. Licensed business brokers like us who are part of the Australian Institute Of Business Brokers will be able to analyse your business and use comparable recent sales to figure out a fair price range.
Marketing your Business
Now it's time to let your potential buyers know your business is for sale. A high quality professional broker can help you market your business to a wider audience of buyers than a doing it yourself via their network, social media ads, buyer lists and more, all while maintaining your business's confidentiality.
Handling inquiries and screening buyers
Not everyone who shows interest in your business is a serious or suitable buyer. Your broker will help manage enquiries, weed out the less serious ones, and find the ones who are a good match for your business.
Negotiations
When you find a potential buyer, there will be some back and forth about the price and terms of the sale. This is where a qualified broker's negotiation skills really come in handy. They'll work to get you the best deal possible on price and terms.
Due Diligence
The buyer will do a thorough check of your business, called due diligence. They'll review your financial records, contracts, and other key documents to make sure everything is as you presented it.
Closing the Sale
Once everything is agreed on, and the due diligence is complete, you'll move to the closing phase of the sale. This usually involves signing paperwork to transfer ownership and handle the financial transactions. Your broker and legal advisors will guide you through this sale process to ensure everything goes smoothly.
Transitioning
After the sale, you might need to help the owner get acquainted with the business. The length of this transition period varies depending on what you and the buyer agreed upon.
Selling a business is a big step, but with the right preparation and guidance, it can be a smooth and rewarding process. It's important to note that each business is unique, so the process may vary slightly based on your specific situation.
Are you thinking of selling your business?
Contact us on 1300 405 597 for a confidential conversation about the saleability of your business in today's market.