SELLING A SMALL BUSINESS WITH SOT BUSINESS BROKERS

There is nothing small about small business. As a small business owner, your passion and determination to build something special is huge. Your hours, your drive, your attitude, your expectations are all larger than life. It’s a big decision to go into business for yourself and an even bigger decision to make your exit when the time is right. There are many factors to consider when selling a small business; when to sell a small business, what is the best way to sell a small business, how to value a small business to sell, how to find a buyer for your small business and how to prepare your company for sale. Continue reading as we delve into all these topics and more.

SOT Business Brokers are highly experienced in both selling a small business and also with larger M&A style transactions. The expert team have experience in selling all types of small businesses including cafes, online businesses, retail shops, automotive businesses, beauty salons, restaurants and franchises.

Many small businesses look to SOT Business Brokers instead of the very corporate style brokers where you can get lost in the big wheels of the machine. SOT Business Brokers have a unique and personalised approach. You will have a dedicated broker and access to a top marketing expert within the team who knows how to package and present your small business for sale. Best of all, we don’t ask for upfront sales fees. We get paid when you do, making our team highly motivated to sell for the best possible price in the shortest amount of time.

When to Sell a Small Business

When is it time to sell your business? Deciding when to sell your small business is no simple task and there are many factors to consider, including:

• Has there been a change in passion or a desire to move in a new direction?
• Was there a goal to sell from the outset? Did you have a plan such as “when I’ve hit xyz objectives/timelines, I am going to sell my business”
• Has the business outgrown your skillset?
• Has there been a change of circumstances such as health, family or lifestyle priorities?
• Is retirement on the cards?
• Is there cash flow or capital restrictions stunting your business growth?

The overall financial picture of a company will of course play a big part in deciding when to sell a small business. Buyers want up to date figures and your most recent year is your most important year. Having your books finalised promptly at the end of the tax year will work in your favour and consider what can be done to finish the financial year on a high. Can you shift some debt, sell off old stock via a clearance sale or get some new partnerships up and running?

Not surprisingly, selling a small business which is experiencing financial growth results in a quicker sale. Buyers will also be more motivated to pay a higher price for the business. If your business is well established (5 years +) and has seen good year on year growth, you are in a fantastic position to sell your small business. If your business is in a financial position ripe for selling, consider selling. Many owners wait until a decline however it’s good to remember a business in a state of growth will sell quicker and for a higher price than a business in decline.

What’s going on in your industry is also very important when deciding when to sell a small business. Is there a big player in your industry causing upset and affecting the trends? Will the situation be worsened in coming years? If numbers are down, there is often hesitation to sell, but it’s important to keep in mind how things could play out if the situation worsened over a longer period of time. If profits are declining, can some changes be made to level out or push the trend upwards? The SOT team has experienced business growth consultants and has even listed businesses on the ASX. Some recommendations can be discussed to improve the overall financial situation with a sale in mind.

On the flip side, is there some hype in the industry which could result in a keenness to buy/consolidate in your sector? We can help you understand where your industry is at and how it will influence selling your small business. Read more about the best time to sell a business.

What is the Best Way to Sell a Small Business?

Selling a business requires full time attention and focus. Small business owners are best doing what they do best – continuing to run the business with an aim to maintain or increase revenue/profit to sell. The selling and buying of a business has various complexities – valuation, negotiation, accessing the right buyers, due diligence and more. Due to the complex nature of the sales process, it is not recommended to try and sell a small business on your own.

The best way to sell a small business without a doubt is to engage professionals who are highly experienced in the art of buying and selling businesses. SOT Business Brokers also maintain strict confidentiality so your competitors, suppliers and employees are none the wiser.

Selling your small business is likely one of the biggest life decisions you’ll make and is without a doubt an emotional experience. By engaging a business broker like SOT, the sales process can be approached as a third party who can offer clarity and objectivity that a business owner simply cannot do themselves.

How to Value a Small Business

Our highly experienced team know how to price a business for sale and understand that getting the best price possible in the shortest amount of time is a priority. Our experts know how to value a small business to sell via our comprehensive appraisal which takes into account physical assets, annual turnover, number of customers, industry trends, market potential, online presence, mailing lists, and more. Read more about how to value a business to sell.

How to Find a Buyer for Your Small Business

Where to advertise your business for sale is an important part of the journey. We have access to a large pool of buyers and we work with top ranked websites for small business selling online, ensuring your business is marketed to the maximum amount of potential buyers.

All interested buyers are pre-screened and execute a Confidentiality Agreement before receiving any sensitive business information. When engaging SOT to be your business broker, you will have an expert in your corner negotiating the best price.

How to Prepare Your Company for Sale: the Legals

If you think making the decision to sell your business is hard, how to prepare your company for sale only gets more complex unfortunately. SOT Business Brokers simplify and destress the process of selling your small business, by supporting with the formalities, procedures and legalities. We’ve got your back in assisting with financial documents, contracts, liaising with accountants/lawyers/banks and more. We make the paper work hassle free when selling your small business.

Let's Discuss the Next Steps On How to Sell Your Business

Our success based commission model means we win when you win, so we are highly motivated to get you the maximum price in the quickest time. Very few brokers work this way.

To learn more about successfully selling your company please get in touch with SOT Business Brokers Perth here.