Thinking about selling your business?
If you’ve decided to sell your business, it pays to plan wisely and early. Here are some questions to consider.
What is your business worth?
Knowing the value of your business is key for both you and your future owner. This will help you understand how much you might make from the sale, and will provide any potential owners with detailed information on how your business has been performing. It helps to conduct your own research into the value of your assets and earnings, and how much a similar business might cost. For a detailed independent understanding of the value of your business, you may want to approach a valuer.
How you will find a prospective owner?
There are a variety of ways to find a suitable buyer for your business. Beyond listing your business with an agent, you may consider signaling your interest in selling the business to your employees, family members, competitors or other contacts. Or you may want to approach investors, business brokers or buy advertising space in a media outlet to advertise it yourself.
What are you planning to do with the money from the sale?
Whether you’re planning on using the profits from a sale for retirement or are looking to put it towards another start up, it’s always good to maximise the amount of money you end up with. As such, it’s ideal to sell when market conditions are healthy for your industry. It’s recommended you get help from a business consultant, accountant and solicitor to help identify the best time to sell, find buyers and work out how to structure the sale agreement.
Getting ready for sale
If you are planning to sell your business to someone you know, or even if you are using a business broker to sell it, you’ll need your business to be in the best possible shape when it goes up for sale in order to get a good return on your investment. Putting in the effort to get everything sorted before you sell is a really good idea.
To find out more information on getting your business ready for sale visit business.govt.nz.