Having a strong understanding on how business buyers will make their final buying decision can be a critical element in selling your business.
You may already realise that you are selling the location, fitout, profits, brand, lifestyle and years of hard work building the business as the business owner.
Ultimately, what the buyer is actually purchasing is much simpler and it’s often not the “independence” or "lifestyle" promoted to get their initial inquiry, the final buying decision will culminate in the due diligence or research process as part of the sale.
This research process is a detailed and technical process and realistically reduces what a buyer is looking at into its most simplest form.
The business buyer is predominantly buying the future maintainable profits of the business, for which the seller can demonstrate, under predictable circumstances, they can and will be sustained for the next 3 to 5 years.
Of course, elements such as the lease, location, fitout and lifestyle are very important, however, it all comes down to the ability to demonstrate continued future profits.
You as a business owner needs to prepare the business for sale, regardless if you are thinking of selling now or in 3 years' time.
Legal and financial documents form the basis for any due diligence that a buyer might conduct, and without a solid method of verifying your profits, turnover and tenure, serious buyers will simply walk away.
If you can eliminate uncertainly, risk or doubt in relation to your business you will earn buyers confidence and the positive is they will be more likely to proceed with the sale.
This process, if conducted successfully, is also likely to attract a better sale price in a shorter time frame, which is the perfect scenario when selling any business.