Selling a Business

Selling a business

There are many reasons why the decision to offer a business for sale comes about. Regardless of the reasons it is without doubt that you will improve your outcome through engaging professional help along the way.

CPI Business Sales is here to work closely with you and your professional advisors to maximize the opportunity for a successful business for sale outcome.

What is my business worth

Determining the worth of a business for sale should be a reflection of the known facts of the business following review of financials, stock, leases etc. There are several traditional ways that valuation principles have been applied, and the most common today is:

  • Capitalisation of future maintainable earnings (“FME”) or Return on investment (“ROI”)

The real worth of the business for sale is a case by case basis as other factors such as lease terms, contracts; plant etc. may also influence the result.

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How do I exit my business for sale

The ideal way to exit a business is to sell it. You can do this in a couple of ways.

  • Use a Business Broker – This is the most common procedure
  • Sell it yourself – This is not a common process

Other forms of exit may include:

  • Merging with an existing industry business
  • Family succession
  • Close the business and cease trading
  • Forced closure

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What can help sell my business

When you offer a business for sale there are several things a potential buyer will ask.

  • Why are they selling
  • Is there any hidden expenses
  • Are the figures genuine
  • Is the operational side of the business up to speed

Addressing these type of issues either visually, documented or demonstrated will install a higher degree of confidence with the buyer.

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The selling process

Having an idea of the process involved in a business for sale is important and should include the following milestones.

  • Prepare the business for sale
  • Prepare financial and profile information
  • Market appraisal
  • Set sale price and terms
  • Appoint agent through a Business Sale Authority
  • Prepare advertising and business profile
  • Qualify purchasers
  • Arrange onsite meeting
  • Negotiate a mutual sale agreement through the business broker
  • Due diligence
  • Complete pre-settlement conditions such as stock-take
  • Implement post-settlement training etc.

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Need funding? – CPI Finance has experience and access to a range of lenders