Did you know that 90% of business owners who sell their business do not receive what they expected or wanted for their business? That is, they did not achieve an adequate profit on the sale of their business.
Profit on the sale of your business is the ultimate prize as the true reward for the effort, energies and risks of being in business.
Why does this happen? Because the business was not sale ready, there was a large gap between what an owner thought his business was worth and what a potential purchaser was prepared to pay.
A business that is not sale ready generally has the following characteristics:
- Inadequate organisation structure
- Owner is in control
- Lacks systems & procedures
- Sales & profits are stagnant, or worse, declining
- No strategic plan
How would you rate your business against these characteristics?
So, how does an owner get their business sale ready?
The most important item is to allow yourself time. It is suggested you allow between 2 to 5 years – don’t wait until you are ready to sell.
Where do you start? By developing a sale ready plan which has the clear objective of bridging the profit gap between what an owner thinks their business is worth, and what a prospective owner may pay for it.
A significant by-product of the sale ready process is to significantly improve the work life balance and it may even reignite an owner’s mojo for their business.
The development of a sale ready plan has four elements:
- Conduct a sale readiness audit to determine where the business and owners are, and its current value
- Determine sale readiness objectives including future value, and timeframe
- Identify sale readiness gaps
- Develop strategies to bridge those gaps which may include:
- Shareholder alignment
- Maximising profitability
- Profit growth
- Organisation & management structure
- Management Information System
- Identify target buyers
One objective of having a business sale ready would be to structure the business around what a prospective buyer might look for.
Simply Business has a program to help business owners have their business sale ready. This includes a price that would generate a profit that justifies the years of effort, energies and risks of being in business.
Your enterprise profit can only be realised once, so give yourself the best chance by starting the process now.
Remember our philosophy; “A good business ready to sell, is also a good business to keep.”
If you would like to find out more about how you can profit from having your business sale ready, or to arrange a no obligations free opportunity assessment, please contact us.
P: 03 9797 0590 | E: firstname.lastname@example.org