{"id":80,"date":"2016-05-12T13:32:21","date_gmt":"2016-05-12T13:32:21","guid":{"rendered":"http:\/\/blog.nsw-business.com\/?p=80"},"modified":"2016-05-12T13:34:02","modified_gmt":"2016-05-12T13:34:02","slug":"how-to-prepare-your-business-for-sale","status":"publish","type":"post","link":"http:\/\/blog.nsw-business.com\/index.php\/2016\/05\/12\/how-to-prepare-your-business-for-sale\/","title":{"rendered":"How to Prepare your business for sale"},"content":{"rendered":"

You never know when you will want to sell your business and the majority of businesses I have seen for sale on the market have not been prepared for sale.<\/p>\n

If you own a car or a house your would have a better chance of selling it if you make it presentable to prospective buyers wouldn’t you? so why don’t business owners do the same thing?<\/p>\n

If you have secured the services of a business broker they will help you with this if they are experienced in your type and size of business.<\/p>\n

Here are some questions that may help you.<\/p>\n

Q. How long in advance should I start to prepare the business for sale?<\/p>\n

A. This will depend in part on the age of the business but let’s say the business is over 5 years old, you should have it prepared for sale not less than 3 years prior to your planned or unplanned sale<\/p>\n

Q. What a buyer is looking for!<\/p>\n

A. There are 2 main areas as a starting point<\/p>\n

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  1. A good summary about the business this is known as an IM (information memorandum) this document would normally be adjusted based on the type and size of the business but between 6 to 20 pages in length<\/li>\n
  2. Organized financial statements – made up of the Balance sheet and Profit and Loss Statement for the last 3-5 years<\/li>\n<\/ol>\n

    Q. What are the other main details a buyer will need to know?<\/p>\n

    A. This is a never ending question so lets list a few items on the priority list<\/p>\n