Tips
Whether you are buying or selling a business in Melbourne, Dan Carelli has the experience to guide you towards a successful conclusion.
What you can do now to add value and increase the marketability of your business
To maximize the fundamental value of a business, key value drivers must be identified through each step of the selling process. These drivers should be measured on how they contribute or detract from the value of the business. Once identified, some become opportunities for improvement. Here's a few examples for before you list:
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Assemble a stable and motivated management team. Preferably non-family members.
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Establish effective financial controls.
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Make sure financial statements are accurate and up to date.
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Set and meet realistic budgets.
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Prepare procedures/operations manuals.
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Diversify your customer base – don’t have all your eggs in one basket.
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During the sales process, additional value drivers will help increase what the market is willing to pay for the businesses’ product or service. Buyers will ask these questions.
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Is the facility appearance consistent with the asking price?
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Are the operating profits margins as good as the industry average?
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Is there a realistic growth strategy?
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Are the profits still increasing? (Don’t let the business suffer. work just as hard as you would if your business wasn’t up for sale)
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Pay as little as possible in capital gains when the company is sold or transferred.
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Your business broker, along with an experienced tax adviser, will help you structure the sale for optimum net proceeds.
When you remove yourself from the day to day operations, and look at your business through the eyes of potential buyers, what do you see that would cause them to pay more or less for your business? Create an action plan or goals that prioritize what needs to be done. Psychologists at Harvard University identified that the one thing all successful people did was to create a set of written goals for themselves and then pursue those goals.
If you have a topic you would like to know more about, or know anyone who you think would benefit from this kind of information, send Dan a message by clicking here !