How do i prepare my business for sale?
No matter how small or big your business is, if you intend putting it on the market for sale there are a few rules that will make the process easier and ensure you obtain the maximum sale price.
- Have a plan and a strategy in place
- Know your financials and make sure there are strong processes in place
- Have a clearly articulated vision and business plan in place
- Understand and mitigate any risks
- Ensure your corporate structure is optimised
- Make sure personal assets are separated from business assets are separate
- Ensure your key staff and leadership team are in place to continue operating the business
- Seek professional advice from your lawyer and accountant
An important tool in the sale process is a well prepared information memorandum. The contents of each such memorandum will vary depending on the nature of the business. Some of the matters that will be addressed in a well drafted memorandum include the following in relation to the business:
- Industry and Market
- Products and Services
- Customer Base
- Assets – Plant and Equipment
- Employee/Staff Data
- Intellectual Property
- Service contracts/Leased equipment
- Financial performance
- Asking price and terms.
At FC Lawyers we have prepared hundreds of businesses for sale in a range of industries.
If you would like to discuss the possibility of selling your business, an information memorandum, and what is needed please don’t hesitate to contact our Business and Corporate team.
Back to Blog