Selling your business

Selling a business is not something that many owners or managers do more than once. Unless you have previously sold another business or sought equity investment, you are likely to have little or no experience to draw upon.

Why sell?
Before selling your business or seeking equity investment, you may need to carefully consider your reasons for doing so. Some key questions may include:

• What are my objectives for the business itself? The business might need new investment or capital injections in order to grow.
• What are my objectives as the owner of the business? You might want to realise some or all of your investment in the business to fund your retirement or your next investment.
• What are my objectives as owner/manager of the business? You might want to retire as soon as possible or prefer to keep running the business.
• Who else will be affected and what will they want? Other shareholders, managers and employees, and even key customers and suppliers.

Selling to achieve business goals
Selling part or all of the business may be the best way to achieve your objectives.
In preparing your business for sale, some of the key issues to consider include:

• getting the right advice
• grooming the business for sale or equity investment
• the sales or investment memorandum
• valuing and marketing your business
• getting the right price or equity partner
• the sale and negotiation process through to completion of the deal.

For more information:
VECCI Business Brokers
Tel: +61 (0)3 8662 5172
Fax: +61 (0)3 8662 5201
Email: sng@vecci.org.au