Article: Commercial
Managing the Sale of Your Business with Aaron Toresen and Ray Kingston
When it comes to selling a business, research shows that many owners have a limited understanding of the process and often make fundamental mistakes that can seriously undermine the final sale price.
This sequel of articles which will be published in your PropertyPlus magazine over a period of time, have been designed to help you avoid the common pitfalls.
Compiled by industry experts in business sales, it provides a comprehensive overview of all the steps involved in selling a business, from grooming through to the final hand-over period.
It offers tips and insights on how to manage the process in a planned, orderly manner to ensure that sensitive information is protected, uncertainty is avoided and the best price is achieved.
Achieving the best value
For many business owners, selling up represents the culmination of years of personal effort and commitment, rewarded by freedom that financial gains can yield. For others, it’s a time when opportunities have been maximized in one area and new challenges beckon. Whatever your intentions, this sequel of articles is designed to help you along the way. Selling a business has become a complex transaction that is subject to many legal and financial conditions, a number of which have come into force in recent years. The commercial environment is also more competitive than ever before, and sensitive commercial information or intellectual property must be carefully protected. Many businesses change hands every month in a planned, orderly way with owners realizing excellent value. Others are sold in a less rigorous do-it-yourself fashion. This often leads to poor results which are compounded by frustrating delays and ongoing uncertainty. These articles will demonstrate the value of using a disciplined approach to selling your business.
Maintaining confidentiality
Many issues can affect the sale price of your business, and a number of them are commonly overlooked. For instance, confidentiality is critical to maintaining ongoing good relations with customers, suppliers and staff. Should staff discover your intentions to sell prematurely, they may react in unexpected ways and jeopardise the performance of your business at the very time when it matters most. Similarly, customers and suppliers may become unsettled and start questioning their long-standing relationships with your company.
Keeping focus
It is also important that you are not distracted during the sale process from the day-to-day running of your business. If it suffers a downturn during this period, the final sale price could be seriously reduced.
These are just some of the reasons why an increasing number of business owners are choosing to market and sell their businesses with the assistance of a professional business broker.
by Aaron Toresen and Ray Kingston of Link Business Broking Ltd. MREINZ
