Before You Decide to Sell

When making the decision to sell it is imperative to prepare.

If you have made the decision to sell, not immediately but in the short to medium term (say up to three years); you may be well advised to develop what is known as an Exit Strategy.

Trade Transfer can assist you with the preparation for a future sale by reviewing your current business and establishing a plan to prepare your business for sale at the relevant time.

Once you have decided to market your business the following points have to be reviewed and where necessary action taken:

           a) Records; financial, legal and employment. Ensuring that they are up to date and
               complete.

           b) Copies of contracts are available, and their transferability established.

           c) Details of your customer and supplier bases, together with any current and past
               marketing materials.

           d) Resolve issues surrounding which assets that will be termed ‘personal’ and
               therefore excluded from the sale.

           e) Also how any personal loans either to or from the business will be settled.

Also you should have ready answers to questions such as:

          a) Why are you selling?

          b) Structure of the deal, a share sale or asset sale; and whether you are seeking
              an all cash transaction.

          c) Are you open to discuss alternatives, and what would you not consider?

          d) Would you be open to involvement in the business following the transfer of
              ownership?

Depending on the trade of your business, there may be licences or agreements that the business should legally hold. Review and ensure that none are missing or have lapsed.

Buyers can become guarded and suspicious if in their view you appear to be ‘making it up as you go along’ and also when questioned your answers seem vague and/or questionable.

Finally you should have a realistic valuation of the business and developed a profile of the buyer you seek.

Trade Transfer as a Business Transfer Agent will assist you throughout the process.

Click here for information on why you should consider engaging Trade Transfer as your agent, or for an insight to the process of selling a business, please click here.

Click here for information on valuations. 

Remember, Trade Transfer’s motto is ‘With you every step of the way'