We would need to discuss in detail
your individual needs but the following will provide a general guideline,
PLEASE CALL US
FOR FURTHER ASSISTANCE.
IMPORTANT
POINTS FOR CONSIDERATION.
Please understand
that any information you provide regarding the sale of your business will be
carefully and thoroughly examined by the potential purchaser, their
personal accountants and any potential finance provider, as such it needs to
give an accurate reflection of your business, and its present position.
Be aware that any
major variation between the figures you have provided, and the figures that
your accountant/bookkeeper have provided will need to be substantiated by any
independent accountant providing assistance to a potential purchaser before
they will proceed with the normal sale transaction.
You need to ensure
that the information you provide, which is the basis for the potential
purchaser to assess the net worth of your business, is accurate in all
respects. Any variations for any reason need to be explained either at the
initial contact, or the first available opportunity to ensure that no confusion
or doubt is created.
We need to remind
you of the legal requirements for you as a vendor, and ourselves as your Agent
to make full disclosure on all matters which are, or ought to be, within your
knowledge where it pertains to your business.
There are a myriad of questions in this area and we will assist you
wherever possible to ensure this part of the sale process causes no concern.
Please contact us
immediately should you need any assistance regarding any of the above
matters. While it may appear daunting
initially, the better the preparation
and presentation the better the prospect of a successful sale at an acceptable
price.
One of the first
questions potential sellers ask us is: “What is the goodwill of my business
worth?”
Maximising the
sale price of a business is influenced by a few factors, one of which is the
profitability of the business! Other
factors that will have an impact on the price include:
- The
level of dependence upon a working owner and how systemized the business
is. (That is, how heavily does it rely
on the owner.)
- How
transferable existing clients’ goodwill is to a new owner.
- How
much additional investment in ongoing working capital would a purchaser have to
make to cover items such as debtors and inventory.
- The
handover you can give the purchaser to ensure continuity for the business; and
- The
willingness of banks to lend or partly finance a purchaser if required.
Depending on the nature of your business, there are likely to be other factors in addition to
the above that will have an impact on the sale price.
The better
prepared you are to deal with these areas, the more appealing the business will
be to a prospective purchaser.
It may be advisable to work with your accountant
to ensure that you can provide the best possible details to a prospective
purchaser on the above areas.