The biggest frustration for me helping business owners turn their business in to a saleable asset is the beliefs business owners develop around selling their business.
The biggest frustration for me helping business owners turn their business in to a saleable asset is the beliefs business owners develop around selling their business.Very often these beliefs are etched in to their minds by well meaning accountants, bookkeepers, business coaches, friends and the media.
If you want the real facts about having a business that’s ready for sale ….
Attend my half day workshop on the ‘7 steps to turning a business in to a saleable asset’ and preparing it ‘ready for sale!’ Click the button to get more details and to register!
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What are those common beliefs and mistakes owners make?
(1) I’ve had my business for 30 years and my accountant says it must be worth a $million
WRONG! Whilst longevity is a factor it doesn’t affect the market value very much. It may help to make it more attractive to a buyer and therefore easier to sell. On the other hand it can also be a negative if the business hasn’t kept up to date!
(2) My accountant says my business is worth 5 times earnings before interest, tax, depreciation and amortization (EBITDA)!
WRONG! With the best will in the world, very few accountants are able to put a market value on a business. Why not? Because they are not out there in the market place day after day selling businesses. Also, there is no set multiplier (properly called an ROI factor) or ‘rule of thumb’ for different types of business. Yes, the adjusted net profit (sort of EBITDA) is one part of it, but the the risk to that profit determines the ROI factor (multiplier). This is explained in detail in my half day workshop with lots of real examples.
(3) It’s a waste of money engaging a broker or lawyer and using a sale agreement. I’ll just write something up with the buyer.
WRONG! You most definitely need a good business broker or lawyer involved to protect both parties and avoid litigation after the sale. Dollars invested now can save you a fortune and a lot of problems post sale.
(4) My business is a simple one. As long as the buyer offers me the asking price that’s all I need to agree.
WRONG! There are numerous things that need to be discussed and agreed at the offer stage. Then everything needs to be in the buy / sell agreement before both parties sign. Failure to do this thoroughly can end up in litigation after the sale.
(5) That’s it, we’ve signed the sale agreement so I can slow down now and book my flights to Bali!
WRONG! The seller has an obligation to the buyer to keep running the business as they always have until settlement. Many sales fall through because of things which come out in due diligence! Sometimes the buyer will not get finance. It’s not over until the money is in the bank! If you let the business slow down and then end up keeping it …….
This is just a very small list of the things that need to be dealt with when selling a business.
How can you avoid making these mistakes and sell your business in the shortest time, for the least hassle and for the most dollars?
Start by attending my next half day workshop on preparing a business ready for sale!
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I am a business ready for sale coach and business broker and dedicated to helping business owners prepare their businesses “ready for sale” – whether you want to sell or not, because a business that’s ready for sale is well worth keeping!
I tried to sell a business privately and failed because I made all the mistakes! Then I learned the correct way from one of the best brokers in Australia. Since then I have operated as a business ready for sale coach and part time business broker All of that learning and experience is the value add that I can bring to you!
John Denton
What Previous Clients Have Said….
“A few years before I wanted to sell my business, I attended John’s “Prepare Your Business Ready For Sale” course and this was extremely beneficial. I discovered that selling a business was a lot more complicated than I expected. After the course John worked with me as my coach to prepare my company for sale over an 18 month period. When the time came to list I was fully prepared and achieved a very satisfying result. I cannot thank John and members of his BOB group enough for the support and guidance. – Nolan Penning, Former Owner of Magnum Essence
“When it comes time to make big decisions, to bounce ideas off people or have a focus group on a new product, that’s when it can feel very lonely for a lot of small business people. That is where I have found John Denton’s mentoring / business owners board (bob) groups to be invaluable assistance.” – Gary Maynard, Owner – Medichill
