News
Are you a business owner looking to sell your business and embark on a new chapter? The process of selling a business can be complex and overwhelming, but with the right guidance, you can set yourself up for a successful sale.
Below, we'll explore the essential steps to prepare for selling your business, including where and when to sell, how to navigate joint ownership, the key steps in the business sale process, and how your accountant can support you throughout the journey.
Before putting your business on the market, it's crucial to determine its value. However, valuing a business and this can be a challenge for many. To arrive at a fair valuation, it's recommended to employ forecasting models informed by external economic data, conduct due diligence, and emphasise current cash flow. Working with the Attune team’s specialists can ensure that you reach an accurate and realistic valuation that attracts potential buyers.
When it comes to selling your business, you have options.One approach is to engage a business broker who will act on your behalf, working to secure the best price, ensure legal compliance, and make the selling process as smooth as possible. While brokers typically charge an upfront fee and take a commission, their expertise and industry-specific knowledge can be invaluable.
Alternatively, you can choose to sell your business independently, leveraging technology and doing the legwork yourself. This option requires organising your financials, advertising online, handling enquiries, and arranging a contract of sale with the assistance of a lawyer and your accountant (that’s us!).
Timing plays a crucial role in maximising the sale of your business. Just as winter is the prime season to sell coats, every industry has its peaks and troughs. Consider variables such as seasonal trends, the local economy (including cash rate status), industry-specific events, competitor movement, and your cash flow and financial history. Understanding these factors will help you determine the optimal time to put your business on the market and attract potential buyers.
As part of our work with your business sale, we can provide some insights and guidance on timing the sale of your business.
If you co-own your business with someone else, selling adds an additional layer of complexity. Ideally, you will have a shareholder or partnership agreement in place that outlines the respective shares of each owner, processes for exiting the business, and dispute resolution mechanisms.However, if such an agreement doesn't exist, it's crucial to address questions like what happens if you want to sell but your partner doesn't. Working with a solicitor and the Attune team can help you navigate these complexities and ensure a fair and smooth sale.
Once you've defined your sales strategy, including the desired price and the approach you'll take, it's time to proceed with the business sale process. This involves advertising your business through appropriate channels, organising your paperwork (financial, loan, and tax statements), negotiating the sale price and terms, obtaining a professional contract of sale, communicating with your employees about the impact of the sale, exchanging funds on the settlement date, transferring lease agreements and assets, signing over directorship, and notifying relevant parties about the sale.
Even if you choose to handle the sale on your own, partnering with the Attune team is crucial for a smooth and successful transaction. Here's how we can support you:
Selling your business is a significant undertaking that requires careful planning, expert advice, and meticulous execution. By partnering with Attune Advisory, you can ensure that your sale is optimised for success. Our experienced team will work closely with you to guide you through the entire process. Set yourself up for a smooth and rewarding business sale by contacting Attune Advisory on 1300 866 113 – you won’t regret it.
