How to Prepare Your Business for Sale in Sydney
Sydney is riding high on the success of its fastest growing economy and rising educated population. The capital city of New South Wales has become a stronghold of commercial activity along with Melbourne and is driving the growth of the entire country. Sydney recorded a per capita growth of 1% in 2016-17, while all the other major cities witnessed a slip in the numbers. Most of the Asia Pacific corporate headquarters are located here, and the population boasts of a skilled multicultural workforce which makes it an economic hub. That is why it is probably the best time to invest and make the most of the current financial boom. Acquiring businesses for sale in Sydney is a lucrative alternative for budding entrepreneurs. In 2016-17, the GDP of Sydney touched the mark of $557.9 billion which was 33% of the country’s total GDP. These figures suggest the significance of Sydney as a global commercial centre that is receiving record investments and immense support from the government. It is a world-class city with state-of-the-art infrastructure and health and education services along with low employment and stability.
A significant factor working in favour of the city is that it is much cheaper to run a business here than anywhere else in Australia. People who have become entrepreneurs have been able to leverage access to the best industrial properties, high-quality distribution channels, superior transportation and more. It has a diverse economy which has been making waves in all the sectors ranging from mining and manufacturing to agriculture and finance. The development of suburbs and well-serviced locations has eased the way of operating a business. In fact, the global agencies Standard and Poor’s and Moody’s have bestowed the triple-A credit rating on the state of NSW. With all these factors in their favour, people who wish to start a new venture can easily acquire an established business for sale in Australia to make the most of this financial boom.
This is also the best time for business owners to sell off their companies to make the maximum profit as they can get the price they wish and deserve. This is particularly beneficial for those who aspire to take a sabbatical from work or move to a different field of occupation. In fact, a lot of people who have worked hard to run a business for long yearn to wind up and go on a world tour. Well, then this is the perfect time to pack the bags and leave. However, before jet-setting the business has to be sold and the countdown to cracking the deal starts with a little bit of preparation. There are thousands of businesses put up for sale in Sydney every year. That is why there has to be a strategy in place for cracking a successful sale because better preparation yields better results. Whether it is an independent business or a franchise for sale in Australia, both can prove to be equally productive and money-spinning endeavours for both the buyer and the seller.
Here are a few ways of preparing a business for sale in Sydney:
Arrange the Paperwork
To kick-start the selling process, the first step would be to organise all the documents systematically. These will be the first set of elements to be inspected by the potential buyers. This would include the financial documents such as the balance sheets, tax receipts, loan statements, and budget sheet for the last five years. The lease agreement is another important document that needs to be read thoroughly to understand whether it can be transferred to a new owner or not. In addition, the expiry date, duration of the lease, and renewal options need to be checked once again. In case it is a franchise for sale, then the franchise agreement needs to be reviewed to know how the transaction shall proceed.
Get the Estimates
After the documentation is put in order, the next step is to contact the accountant and do the business valuation while keeping the finances in mind. These figures need to take the future cash flow and tax implications into consideration so that the due diligence process can be initiated. It is also imperative to be aware of the market conditions and the financial health of the industry to which the business belongs.
Set A Price
Business valuation is an important step and it should be realistic. A business broker can help quote the best price that encompasses elements such as the cost of the property, equipment, branding, customer base, sales and profit, credibility etc. It should not be overpriced otherwise, it might not be able to fetch a good buyer and hang in the balance for years. The business brokers have the required experience to come up with a ballpark valuation that suffices for the owner’s needs and helps to make a profit as well.
Plan for the Company’s Future
While selling a business, it is essential to have a growth plan to attract buyers and make it appear like a profitable deal. If there is no such plan in action, then the price of the business can slip. Make sure that the customer base stays loyal and potential clients show the required interest in the product and services to make the conditions favourable. All the business functions should be moving together in the upward direction to get the buyer interested.
Prepare your Employees
The moment the decision to sell the business is confirmed, it must be communicated to the employees to inform them about the prospects and changes in the organisation. Avoid creating any panic and make it a smooth transition process that does not cause any anxiety or exhaustion. Present the change of management as a beneficial and rewarding scenario that will catapult the company to new heights of success.
The Delegation of Responsibility
A while before the business is scheduled to be sold, the owner must start delegating all the duties to the subordinates and the upper management staff to let them run the company on their own. This will make sure that once the ownership is transferred there are no roadblocks in operating the business and the administration is prepared for the exit of the boss.
Advertise Your Business for Sale
The business needs to be advertised among the potential buyers to crack a successful deal. The best way to reach this target audience is through the internet as it is cheaper than advertising in newspapers or other media channels. The reach of the internet is more extensive than traditional media and there are dedicated websites where the ads for businesses for sale can be listed. They can be further classified into industry and location specific category lists to make it easier for the buyers to find the business of their choice.
All of the steps mentioned above can prepare a business for sale in Sydney and gain a reasonable return on investment through the deal. An important thing to remember here is that a company cannot be bought or sold in a day; it takes time and patience to carry out the process. Keep the figures positive and the paperwork in order to avoid any alter
ations or confusion during the negotiations. Make it appear as an attractive proposition and gain from the credibility and popularity of your already established company in the market.