Are you planning to sell your business? Have you considered what information will be required if you are to sell your business?

Gaining an understanding of your business, collating the right information, and presenting that information in a professional manner is one of the many areas Boyd Ryan Business Sales & Consultants prides itself and stands out over many other brokerage firms.

Supplying the right information is paramount when selling your business.

The equation is quite simple – the more relevant and accurate information you provide to a potential buyer about your business, the more informed that person becomes about your business, and the higher your chances are of selling your business. The potential buyer will have certain criteria they need to satisfy when looking for a business to buy – if the information provided about your business satisfies many or all their criteria, you are well on your way to selling your business.

Providing information in an open, transparent, and factual manner also builds trust, the cornerstone of every business sale. If a potential buyer starts to trust the information being supplied, the broker delivering the information, and the vendor (the source of the information), you are again well on your way to selling your business. Should the information provided be deemed as so thorough and so complete by a potential buyer, you may even avoid the time, costs, and uncertainty involved with a formal “due diligence” process.

Generally, potential buyers will look at multiple businesses to buy. Providing all relevant information in a professional and comprehensive manner will distinguish your business above others and assist any potential buyer in selecting the most appropriate business for them to buy. Providing a potential buyer with the complete picture puts you well on your way to selling your business.

Quite often, and understandably, the vendor is focussed on what the sale will mean for them. However, selling a business is a process that can present many obstacles and hurdles that need to be navigated before the settlement date and handover of the business is even considered. In the early stages, all the focus should be on providing the right information to potential buyers in a concise, but complete, format. The effort involved to do this may seem onerous, but it will make for a much smoother and quicker transaction, will help convert any potential buyer to the actual buyer, and will assist in achieving the best price possible.

What information should you supply? This varies business to business, industry to industry, but will often include:

• History of the business – when it was established, how long the current owner     has owned it, etc
• Owner’s involvement and hours worked
• Operational hours of the business
• Profit & Loss Statements for last three financial years
• Staff information – position held, hours worked, length of service, rate of pay
• Lease – rental charges, term, further terms, annual increases, etc
• Plant & Equipment – owned outright and leased
• Supply agreements – with suppliers and/or customers
• Permits – liquor licence, health permits, etc
• Franchise Agreement (if applicable)
• Photos of the business

To discuss the various steps involved when selling a business and how we can help facilitate the process to achieve the best outcome possible for you, please contact Steven Boyd or Cameron Ryan on 1300 071 226 or info@boydryan.com.au
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