Thinking of Selling a Business: Get The Best Price. Call now.
When considering the sale of your business the “well prepared is half done” quote certainly resonates.
The Magnus difference includes talking into considering the sale of our clients’ businesses at some point in time and how to plan and conduct business each and every day in order to maximizes the sale price when that time comes.
To be saleable a business needs to be ready to be sold…………..
Many standard accounting firms use historical data to determine the likely sale price of a business. We know that history combined with vision and business smarts will increase the sale price considerably.
Common questions we are asked include: What is required accounting wise in selling a business? – What other things do I need to consider?
We care about you and your business and we respect that you’ve worked hard to get to where you are and naturally you want the best price for your business
To maximize any business sale price specific factors come to mind and it is these that you can rely on us to focus on.
We take care to:
- Remove all personal transactions from the books of the business. Failure to do so gives the appearance of amateurishness to a potential buyer.
- Document policy, procedure and systems – this ensures the intellectual property of the business owners is documented and “out of the owners heads’.
- Ensure the business is benchmarked against industry standards
- Understand the factors that feed into the multiple of the valuation and maximise these
- Develop an in-depth understanding of the income streams of the business
- Ensure that client concentration is not a risk to the value of the business. EG That you are not generating the majority of your business income from a disproportionately low number of customers. Often referred to as the “80-20 rule”.
- Ensure customer contracts are formal and documented
- Ensure that the business is not reliant solely on the owners input and their personal relationship with clients
- Ensure all aspects of the business are viable and underperforming areas are identified and actioned prior to the sale.
Sadly and too often we hare of people who have worked hard to get their business to the sale point yet end up disappointed at the likelihood of a price way under the owners’ expectations.
Proper planning and having structure in place at all times will eliminate this risk.
You deserve the maximum for your business – call us for a conversation about how to make this a reality!