Business Selling Checklist
18/09/2014
If you're thinking of selling a business, we know it's not a decision you'll be considering lightly.
So, when you do decide to go ahead with finding a buyer it'd make life a whole lot easier if you were able to ensure the transaction was as smooth as possible.
In this guide, we've pulled together the five key points you can check off to ensure your business sale doesn't leave you with a headache.
But what if we told you:
There is a way to ensure you can present your business to interested parties to the best of your abilities.
This will minimise the risk of delays or causing the buyer undue frustration.
In this guide we will take you through the 5 points you should tick off before and during the sale of your business to help ensure a swift, successful sale.
1. Organise Your Accounts
If you're selling your business, ideally you will have at least three years of trading accounts available for the buyer to review.
The better prepared your accounts and the more detail you can show, the better chance you have of securing a healthy offer from a buyer.
Unfortunately, a number of business owners try to be deceptive with buyers about their financial figures. However, all of this would come out in the wash when your buyer is conducting due diligence.
So, the more upfront and honest you are from the get-go, the smoother your sale will be.
The reason this is an issue speaks for itself, since accounts where something seems wrong tends to put buyers off as they understandably see this as you trying to hide or manipulate the financials.
When your books are logical and presentable, without any gaps and with plenty of detail, you're good to go.
And speaking of presentable...
2. Gather Your Paperwork
It's selling 101, you'll need to have all of your paperwork together.
So go ahead and sort out your online documents, get in touch with your bookkeeper and dust off those folders in your desk drawers.
All your paperwork should be up to date and available to view on request.
Here are some important pieces you might need:
- Certificate of limited company incorporation
- Statutory books
- Last annual return
- Copy of any maintenance agreements
- Copy of leasing or hire purchase agreements
- Copy of any commercial agreements
- Details of business rates
- Property lease agreements (if applicable)
- Insurance policies
- List of all employees
- Employment contracts
All paperwork should be up to date and to hand for when they are required.
The following paperwork will be required at some point during the business sale:
- Certificate of limited company incorporation
- Statutory books
- Last annual return
- Copy of any maintenance agreements
- Copy of leasing or hire purchase agreements
- Copy of any commercial agreements
- Details of business rates
- Property lease agreements (if applicable)
- Insurance policies
- List of all employees
- Employment contracts
3. Stay Focused
One thing you need to remember: just because you're selling your business doesn't mean you can afford to take your foot off the gas pedal.
It’s all too easy to get absorbed in the sale and lose focus on the day to day running of your business; but it's really important to ensure that your business is running as efficiently and to maximum potential throughout the sales process.
Showing potential buyers that your business is a slick operation will increase your chance of selling at a great price.
4. Review Your Team
If your business is owner-operated, and your business relies on you as a key member of the team, start thinking about how you could change this.
Not all business buyers want to be an integral part of running a new business, so start thinking; do any of my team members have what it takes to be a manager?
If so, start training them now. Your new buyer might be open to a hands-on approach - but in case they aren't, why limit yourself?
5. Have a Clear Reason for Selling
One of the first questions a business buyer will ask: why are you selling your business?
Think about it from the buyer’s perspective... if the business has real potential then why are you selling in the first place?
Get your reason clear in your own mind before you meet with potential buyers for the first time.
That way, you can reassure the potential buyers that the reason you're parting with your business is a sensible one for you and this will put their minds at ease.
Related Guides
Questions to Ask Before Selling Your Business
There you have it, 5 things you can do to ensure that your business is as presentable as possible. Follow these steps and you'll be much more prepared when a potential buyer comes along.
If you are looking to sell your business, did you know you can sell for free with Bizdaq?
There’s no catch - sell your business for FREE with Bizdaq. Follow our simple step-by-step process to create your 5-star listing and be on the market in less than 30 minutes.
