One of our clients recently signed a contract to sell their business at the asking price, just a few weeks after it was listed for sale. This excellent result was due to the owners’ business sale preparation, in conjunction with our team at Dale Wood.
So, how did they do it?
1. Make the working owner the least important staff member in the business.
This is to reduce the risk of the business losing income after the sale. They decided to promote an employee to Manager, outsource the bookkeeping, and reduce the owner’s working hours in the business.
2. Work on improving your net profit to achieve a higher sales price.
We asked our client to increase their prices, remove personal expenses from the business, and reduce their costs through supplier negotiation.
3. Enhance the appearance of the business to make it more attractive to buyers.
Our next advice was to get the owners to organise a new website and signage, de-clutter, and renovate the premises to create a fresh new reception area.
4. Work on your sales and reduce one-off transactions.
The final step was for our clients to work on their sales, which were mostly one-off transactions. In conjunction with a business consultant, they found several corporate clients to give them ongoing work and started a membership offering for their regular domestic customers.
The result was a high level of interest from buyers who were confident the business would continue to run profitably into the future, and a smooth sale process to allow the owners to move on to their next venture.
For further information on preparing your business for sale, please contact Emily Troon on 0410 697 664 or email emily@dalewood.com.au for a confidential discussion.