Exiting your business is a complicated process but rushing it can be costly. It takes time to find the right buyer and go through the process of finalising the sale. If you're looking to sell, you'll want to know what to expect along the way, and potentially how to speed things along without losing value.
It Takes Time to Get It Right
Finding an interested buyer is only one part of the process. Before you make the sale, you should take care to ensure a positive result for all parties.
Marketing can be tricky if you go it alone, but with support from a reputable business broker it's much more manageable. LINK uses world-class marketing tools and research, fine-tuned over years of learning the most effective way to sell businesses. We ensure that business opportunities are advertised in a compelling way without disclosing sensitive or identifying information.
Once there is interest in your company, the screening process can begin. Nobody wants to waste time and resources courting parties who aren't serious, or who don't have the resources to make the deal. It's in everybody's best interest for the business to succeed under the new ownership.
The buyer will want assurances of their own, and the due diligence phase is about making certain they know what they're getting when they sign their name. They'll want as much information as they can get, including the right to see your operation in person, before they commit to taking ownership.
Selling a company requires a degree of patience but taking the time to get a good deal will be worth the effort.
How Long Will It Take?
The timeline can vary quite a lot, based on the economic climate, time of year, and factors unique to your company. If you have your affairs in order, a realistic goal should be to close the sale within six months. However, some businesses take longer to sell than others.
Industry is one of the most important factors. Manufacturing companies, restaurants and convenience stores go quickly, but many businesses aren't in high demand. Niche enterprises are more difficult to sell, but the plus side is that interested parties are more likely to be serious about the deal.
The size of the business also makes a big difference. Large companies may take longer to sell because there are fewer buyers with the resources to make an offer. The bigger the deal, the longer it can take to get it done.
Price is of course a key deciding factor in making a deal. You should take care to sell your business for a fair value and avoid overpricing it.
How to Sell a Business Quickly
First impressions are everything. Something as simple as a fresh coat of paint goes a long way towards making your business more attractive to prospective buyers. Take care of the little things that might lower your market appeal.
The more willing you are to be a part of the process, the faster you can expect to make the sale - especially if you're able to assist the buyer directly. Cooperation increases confidence, and it's a good idea to offer to help ease the transition in any way you can.
Lowering your asking price will increase interest, but it's usually better to be patient. A better option is to finance a portion of the sale price, incentivising the deal and enabling you to reach a broader market.
Generally speaking, now is a good time to sell a business in Australia. You won't be waiting very long if you go into it with a solid strategy.
Let's Make a Deal
LINK goes the extra mile to find serious buyers, and we're with you through the entire process to make sure both sides are satisfied. If you're looking to exit your business through a sale, please contact me at 0434462388 or email me at sabrina.xia@linkbusiness.com.au.
DISCLAIMER: The content of this article was originally published by LINK and republished with permission. Click here to view the original article.