The process of selling a business looks simple; run an ad, answer the phone, negotiate a deal.
But, like most things in life, it’s never that easy.
At BPS Advisory, we start by conducting a detailed analysis of the business that includes:
- Review of current business plans
- Review of current contracts and tenders in progress
- Examine business structures
- Consider fixed and variable costs
- Examine product costings
- Identify potential areas for savings
- Identify scope for growth
- Identify any “quarantined areas” and eliminate them from calculations
- Review the industry and consider likely purchaser profiles
Then we follow these 10 steps to sell the business:
- Consider the potential to sell the business assets separately
- Consider and, if necessary, prepare a brief strategic plan for the business to demonstrate growth potential and the likely investment required to access that growth
- Value the business
- Prepare a a vendor due diligence kit
- Prepare an information memorandum
- Prepare an advertising strategy and implement
- Receive enquiries and obtain non-disclosure agreements
- Negotiate a deal
- Arrange for contracts to be prepared and check them to ensure that they accurately reflect the deal
- Participate at settlement as required – for stocktakes, employee entitlement calculations etc.