Top 10 do’s and don’ts of selling a business [infographic]
Planning, professional marketing, timing and finding the right match regarding value and terms are...
We’re business transaction specialists and have helped clients buy and sell businesses in a wide range of industry sectors and price ranges, from $500,000 to $25 million.
We tell our clients that selling a business is not an exact science, but there are several critical components that go into a successful sale.
Understanding the fair market value of your business, thorough planning, robust information preparation, targeted marketing and open, transparent communication with interested parties, all contribute to finding the right match regarding value and sales terms.
Part of our selling promise is to provide an independent, realistic view of the market value of your business. We will only offer to undertake a selling engagement after first conducting a valuation or market appraisal of the business.
Exiting a business doesn’t necessarily mean selling outright. It’s about extracting the best value for the client wanting to exit, dependent on the business’s age and stage, the seller objectives and the market appetite.
Options and solutions can include: arranging a staged buyout, a cornerstone investor and senior manager to assist with a succession plan; selling the business outright; winding up the business because it’s not saleable on the open market; providing a plan to drive performance and build value in preparation for sale in three to five years.
A key component of achieving a successful sale is knowing the fair market value of your business before you embark on the sale process. We pride ourselves on giving our clients a realistic view of what is achievable in the market.
Setting a price for your business based on well-founded advice is critical to negotiating the best outcome. You will also have the confidence of knowing our business valuations are conducted by an AAPI Certified Practising Valuer (Business) with up-to-date market comparable and transaction knowledge.
We will help you develop professional, credible information on your business sale opportunity that can be shared with potential buyers. Our professionally prepared marketing documents include past and recent financial and business performance, sufficient to confirm the sustainable earnings of the business and its prospects, and give a willing buyer the confidence to make a fair offer.
Our facilitation service is essentially a ‘match-making’ role that involves helping build a respectful relationship between the buyer, seller and their advisors, sufficient that the buyer feels confident in making an offer aligned to the seller’s requirements and expectations. We facilitate honest, open communication, and deal in a sensitive but forthright way with issues that need clarification. This may include facilitating the sharing of sensitive information, or addressing critical deal terms, risks and issues on behalf of clients.
“James succeeded because he got out there and approached people in similar industries to ours. He actually targeted people and put it right in front of them. He did a good job and just kept following up and following up the whole time.”
Owner, High-voltage electrical contracting business, NSW Hunter Valley, approx. turnover $15M
Services provided: business sale transaction advice and support
The JPAbusiness team has been helping clients buy and sell businesses for over 20 years.
We help our clients plan and gather robust information on potential business purchases in order to ensure the best match with their acquisition requirements.
We can provide a thorough due diligence for business-buying clients and we also assist sellers with vendor due diligence, prior to initiating a sale process.
When business owners come to see us, wanting to sell their business, we often get involved in...
Planning, professional marketing, timing and finding the right match regarding value and terms are...