It is important that a business is “prepared or made ready” for sale prior to listing it with a Business Broker.
One of the most important and essential elements in selling a business that often sellers fail to realise is that a buyer is primarily interested in buying a business that is showing a profit.
The seller should be able to substantiate the profitability of the business by way of presenting financial statements. In many cases for ‘cash-based businesses’ such as cafes and coffee shops, a ‘trial period’ is often offered as part of ‘due diligence’.
- Due diligence is offered under contract to confirm the sales figures stated are true and correct.
- It is also a good idea to have the following documents ready to prepare the sale of your Business:
- Financial Statements including: Profit and Loss & BAS Statements
- Current Lease Documents – Current Rental, Outgoings, Total Area Leased
- List of Plant and Equipment – Leased and Owned
- Current Staffing and Wages Schedules, Rosters including Directors / Proprietors input of hours
- ABN & ACN Numbers
- Seller’s Solicitors and Accountant’s Details
- Franchise or Licence Agreements
- Special Consents/Permits or Certificates relating to the Business
- Depreciation Schedules
- Product Descriptions and Price Lists
- Business Plan/Profile or History
- Photographs – External and Internal
Remember: Selling your business is a major decision, so choose a broker who you can trust and will feel comfortable working with!