- Description
- Specifications
From the moment that you acquire or commence a business you should assume that one day you will want to sell it or merge it with another business. To enable you to do this so as to generate the best possible return to yourself, you should always keep the business in a "saleable state". The best way to sell a business is ideally over a two to three year period. This period will allow enough time to fine tune the financial results and ensure that appropriate systems and records have been put in place so as to enhance the value of the key intangible asset in the business - goodwill. If you decide to sell your business today and want to list it for sale in six weeks time, most probably you will not be giving yourself enough time to maximise the potential return from the business.
This paper sets out comments on the strategy of selling a business under the headings:
- Plan To Sell
- Know The Life Cycle
- Two To Three Year Plan
- Planning Ahead
- Selling A Business Is Complex
- The Key Asset Is Intangible
- Financial Performance Is Very Important
- Stay In Touch With The Market
- Periodic Valuation
- Management Skills Are Important
- Housekeeping Measures
- Debtors
- Stock
- Creditors
- Intellectual Property
- Lease Of Premises
- Business Systems Manual
- Premises
- Staff
- Signs
- Customers List
- Top 20% Of Customers
- List Of Suppliers
- Quality Assurance System
- Trade Secrets
- Marketing Strategies
- Government Accreditations
- Export Market Negotiations
- Business Plan
- Must Have Proper Records
- Staff Details
- Portfolio Allocations
- Meetings Structure
- Key Employees
- Let Staff Know
- Financial Information
- Future Maintainable Profit
- Income Tax Returns
- Budgets And Cashflow Forecasts
- What Is The Business Worth?
- Asking Price
- Negotiating Skills
- Timing Of The Best Time To Sell