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Here is a checklist on preparing your business for sale - hope it helps you! We have a Download on this subject that is more detailed - please feel free to download it, but here is a checklist for you. All the best with your sale!


Before Listing

• Check your Business is Transferable. If you are operating from a leased premise, ensure the lease contract states that you are allowed to sell, or allowed to sell without consulting the Landlord and, if you are sub-leasing, that the lease states you are allowed to sub-lease.
  
  
• Sales Don’t Always Happen Quickly. Allow enough time to sell. Typically a sale will take ‘months’ not ‘weeks’.
  
  
• Make the Asking Price Realistic. The value of a business is calculated differently by different people. For businesses sold in leasehold premises, as a rule of thumb, buyers will generally be attracted to a return on investment (ROI) period of around 2 years or less.
  
  
• Have Your Financials In Order. Electronic copies of the profit and loss statements and balance sheets for the last completed three years, and your current monthly summaries of income and expenses will inevitably be needed (usually) before a meeting and/or inspection are scheduled even (at this stage) the company/business identifying names and numbers are redacted.
  
  
• Ensure Your Licenses and Permits are Current. Generally they don’t cost a lot, but if a Buyer knows that your licenses have expired or don’t cover the business adequately, they will use this to leverage the price down a lot.
  
  
• Staff Competency. Ensure staff are correctly trained and that they are competent without your direct and frequent input. Buyers will be cautious about buying a business that is overly reliant upon the current owner.
  
  
• Decide what Assets Stay and Go. Produce a list of what assets are included in the sale. If possible, remove the assets not included in the sale from the premises so as to avoid any confusion.
  
  
• First Impressions Count! Clean and tidy your work areas and fix minor defects. Nobody likes a dirty and/or untidy shop.
  
  
• A Picture Pains a Thousand Words. Consider obtaining some professional photos for advertising purposes.
  
  
• All Advertisements at the Same Price. You should not enlist the help of others to sell and then advertise the business yourself for a lower price. The people you are asking you to help will feel no need to help you at all.
  
  
• Final Check. When you think you are ready to sell, look at your business as if you are the potential Buyer. Consider addressing the problems you see.

• Do Not Pressure Buyers. Buying a business is a big decision for most people. Buyers will generally be suspicious if you pressure them to buy. They need you to be honest with them and give them information and time to properly consider their options.
  
  
• Negotiate Wisely. Where possible, let the Buyer make the first offer and don’t be too quick to reduce the price too much. If you have set the asking price about right, the buyer will know this.
  
  
• Assets NOT included. If there are assets on-site that are NOT included in the sale offer, ENSURE the Buyer knows what assets these are.