If Your Selling or Thinking of Selling – Talk with your Accountant Now
In last months article you would have seen the following:
From 1 July 2012 until the year 2029, there is going to be a constant supply of businesses on the market. The first of the baby boomers turned 65 years old in 2011 and population statistics show the birth rate of baby boomers growing every year for the next 18 years. Therefore it is going to be a buyers market for sometime.
Armed with this knowledge sellers need to ensure they structure their business properly to give it every chance of selling. This includes pricing the business accordingly, financials up to date, secure leases, openness during the sale process and understanding what is motivating the buyer to consider your business.
Good businesses will sell. The market will play a role in the price you achieve, however what influences the sale price and time to sell the most is how presentable, desirable, marketable and financeable you make it for buyers.
Brindabella Business Brokers Sales 2012 financial year
Even though it is a buyers market, it just means you need a broker that will work hard to sell your business. To give you some indication, Brindabella Business Brokers achieved a total of $2.9m in business sales for the 2012 financial year. These sales did not come easy, but in the end we had happy sellers and happy buyers.
This level of achievement was brought about by ensuring businesses are presented properly, talking with buyers on a regular basis, being available to talk on short notice and ensuring we are armed with the knowledge buyers/accountants are looking for – financials and income tax returns.
Talk with your Accountant Now
If you are currently selling your business or thinking of selling your business you need to let your accountant know immediately. Anyone looking at buying a business will put more weight towards one that has its financials up to date i.e. 2012 financial year completed. Therefore you need to advise your accountant you require your business financials and income tax returns completed sooner due to you selling your business.
If you leave it until you have a buyer, you may pay the steepest price of all, losing the buyer as you were not prepared to sell your business.
The less risk you present to the buyer – the increased chance you will have of selling.