One in four small and medium-sized Kiwi businesses are expected to sell up over the next decade, as the baby boomer generation retires – according to research by Link Business Brokers.
With today’s unstable business climate, selling your small business might not guarantee the ROI you want. Uncertainty and external challenges could be driving your decision to sell and retire, but it’s worth assessing whether the market conditions are right for a successful sale.
The key is to start planning now and make proactive adjustments to your business model. This will position your business as a more appealing option for potential buyers.
Let’s explore three key ways to boost your sale price and ROI.
Clean up your finances and get some financial clarity:
Buyers will closely examine your financial records and cash flow. Keep your bookkeeping and accounts accurate, clear, and up-to-date. Pay off any debts, reduce unnecessary costs, and show that your business is profitable and financially strong. Professionally prepared financial accounts can help confirm your financial claims and boost buyer trust.
Document your processes and systemise the business
Buyers want assurance that your business can operate seamlessly without you. To achieve this, document all essential processes, procedures, and customer relationships to create a clear “how-to guide” for running the business. Streamline and systemise your operations for maximum efficiency. This not only proves that the business is self-sufficient but also lowers the perceived risk for potential buyers.
Work with professional advisers
Selling a business can be complicated, but having expert help makes a big difference. Business brokers can value your business and find potential buyers. Accountants will ensure your finances and plans are in good shape, while lawyers handle the legal side of the sale. These professionals simplify the process and help you get the best price and return on investment.
Talk to us about preparing your business for sale
Getting your business ready to sell takes time, so it’s important to start well in advance. The best time to begin is now! Speak with our team about your future planning, and creating a clear exit strategy that meets your personal objectives.
