How to Make Your Business Easier to Buy

How to Make Your Business Easier to Buy

If you’re trying to sell your business it’s highly likely that any potential buyers are also looking into other businesses for sale as well.

After all, at any one time, there are thousands of other businesses on the market, all competing for that elusive buyer.

One way of ensuring your business is more attractive to any potential buyers is by making it easier for all parties to access, to understand, and to respond to, all of the necessary financial and legal documents.

This transparency of process not only engenders confidence in potential buyers…

…but because there’s no time wasted chasing documents, it also helps you to sell your business faster.

The Advantage of a Cloud-Based Data Vault

The Advantage of a Cloud-Based Data Vault

When you’re selling your business via an innovative and proactive business for sale website, it just doesn’t make sense to be chasing an old-fashioned paper trail and sitting around waiting for documents to be manually signed and posted.

Which is why an important part of our Brilliant Businesses 5-step Complete Business Sale Solution is the creation of our unique cloud-based Data Vault.

Our Brilliant Businesses’ Data Vaults are an innovative and secure document storage system central to every one of our business-for-sale websites. The Data Vault keeps all of the stakeholders informed, as well as providing them with real time access to important documentation.

Respond to Questions in a Timely Manner and Keep the Information Flowing

Respond to Questions in a Timely Manner and Keep the Information Flowing

Even though the Data Vault provides all of the stakeholders with secure real-time access to important documents, there will still be questions potential buyers need to ask you.

Once you have a buyer on the hook and interested enough to ask questions about your business, responding to questions in a timely manner and keeping the information flowing not only shows the buyer you’re genuine about selling and reassures them things are as they should be, and the business is genuinely ready for sale…. it also speeds up the entire sale process!

Prepare a Digital Non-Disclosure Agreement

Prepare a Digital Non-Disclosure Agreement

When you’re satisfied potential buyers are serious prospects (and not competitors trying to get your intellectual property) and you are happy for them to view a business report or Information Memorandum containing some preliminary financials, ask them to sign a NDA (Non-Disclosure Agreement) .

An NDA is a document seeking their commitment not to disclose any confidential information to a third party.

This contract creates a legal obligation to privacy and compels those who sign it to keep any supplied information top-secret or secured.

If that obligation is ignored, you’ll have legal recourse and might even be able to sue for damages.

Because your NDA is stored in the Data Vault it can be signed electronically, saving the need to print out, sign and return it. The data vault makes the process of signing an NDA very quick and easy, as it enables legally binding documents to be signed digitally and returned and lodged automatically.

Your digital NDA ensures a seamless and secure online process, eliminating any potential security concerns and time delays that can occur when sending confidential documents by post or courier.

Anthony, a buyer, particularly loved the Data Vault concept.

“There had obviously been a huge amount of work done – there was easy access to the information. Being able to start the Due Diligence process with everything there was really good.”

Present Your Financial Results Visually

Present Your Financial Results Visually

How you present your financial reports can be as important to the success of the business sale as the actual figures themselves.

Spreadsheets, the traditional method presenting numbers works well for buyers who gather information analytically (such as accountants) but for the majority of the population (and specifically those ‘big picture thinkers’ with entrepreneurial traits) visual communication really is the way to go.

So, if you want to showcase your numbers in a way that will appeal to the majority of the population, you will need to present your financial results visually using pie charts, graphs and diagrams.

Use these visual representations to pick out the important numbers and trends that reinforce the value of the business opportunity. Steady turnover growth, increasing profits and income from multiple sources, will all support your business valuation and enhance its appeal.

Of course, the business report shouldn’t focus solely on financials. Though results are obviously crucial for an evaluation, data on company structure, trading agreements, sales pipeline and marketing plans are also important factors in determining the viability and value of your business.

 Use a Broker to Mediate Price

Use a Broker to Mediate Price

Sooner or later the discussion will inevitably turn to asking price, and this  is where it can get tricky. It’s important to have a cool head by your side once you reach the pointy end of your business sale.

Clearly you want to maximise the price you receive for your business, but equally you don’t want to set the benchmark so high it puts any buyers off too early.

On the other hand, any potential buyers will understandably try to negotiate the lowest price possible, which is why a broker’s input is invaluable.

Closing a deal can take time and it’s very normal for discomfort to be felt on both sides – agreeing a fair price is always open to interpretation. But because your broker is removed from the emotion of the decision they actually become a mediator in the negotiations, bringing your buyer and yourself together at a mutually acceptable figure.

And though your broker is working for you and trying to achieve the best possible financial outcome for you, at the end of the day it’s their job to help get a deal over the line.

So if your buyer feels they’re paying a bit too much, and you reckon you’re selling too cheaply…

…the reality is that the proposed purchase price is probably fair, and your broker’s done their job correctly.