So, you’ve thought about your business and your next stage. You’re ready for the next big adventure and you’re prepared to cut the cord with your current business. There are no natural successors interested in taking on the business. You’ve worked through the options and the best one is to sell. Now, how do you maximise your return?

To realise the best possible return your business, you need it to be in the best possible shape for market. Like a house, ideally it needs to be solid from the foundations up, look good and smell of freshly made coffee and new-baked bread…metaphorically speaking. In a competitive market, you can be sure that any prospective buyer will look into all aspects of the business. Be prepared. And the best way to have a business that looks good is to have a business that is good.

Research
Look into the market so you understand what would attract a prospective buyer. Think about the kinds of questions they will ask to satisfy themselves that there is a winning opportunity for them in acquiring your business.

Review
Have a plan and work through so that every facet of your business is attractive to a buyer. What is the face of the business you want to market? Ask the basic questions first: will a buyer be most attracted to a venture that, while it has a lot of promise, isn’t delivering on that promise yet? Or a venture already yielding solid returns while promising more room for growth in revenues and profit? Or one that, while it is delivering good margins now, is flexible and lean enough to change direction with a new owner? Or will your primary selling point be that your business is mature, delivering good yields consistently, with established markets and suppliers and an experienced team?

Remedy
Next, work on the underpinnings of the business to make sure they can stand scrutiny. For any issues that might put off a prospective buyer, set targets and put together an action plan to remedy any problem areas.

When you have worked through all aspects, you have what you need to put together the information or sales memorandum for your business. This is essentially a marketing document for your business. However, while ‘marketing’ may mean smoke and mirrors to some, the information memorandum should be grounded in hard facts, clear and to the point. Your main purpose here is to present to a buyer how easy it would be to run, grow, or improve the business.