News Article

10 Key Moves When Selling Your Small Business

Mon, 20 April 2009 AEST

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1. Get on good terms with the tax man. Got an extension for filing your taxes? Pay them now. Ensure that all your taxes, BAS-Statements and rebates are up to date.
   
   
2. With your accountant, review your financial statements for at least the last three or four years. Most small business owners deduct legitimate perks-vehicle use, higher-than-average salaries, and so forth. You'll need to "add back" these discretionary expenses so that a buyer can see what it will truly cost her to run your business. Depending on the buyer, you may need to have your financials audited as well.
   
   
3. If you've been mixing personal expenses with business, stop. At the very least, it's confusing to a buyer, but it can queer a deal altogether.
   
   
4. Spruce up your facility, like you would if you were selling your house. Fresh paint matters. Be proud.
   
   
5. Follow the rules. If your industry is regulated, make sure you're complying with every regulation and that you can prove it with the necessary documents.
   
   
6. Get help valuing your business. Assessing valuation can be complex, especially if your business is unusual. Medici Capital can provide you with a comprehensive valuation of your health practice. Valuations form a core part of our business and we can assist you with the assessment of what your business is worth.
   
   
7. Examine your customer list. If you're relying heavily on one or two large accounts, start diversifying. Dependence on a few large customers is a liability.
   
   
8. Get out of the way! Buyers don't like businesses that will fall apart if you're not there to run everything. Remember, if the goodwill of the business leaves with you, you will not obtain a high sale price for your business.
   
   
9. Create or update operating manuals. Document how you do things so that a stranger can follow the instructions.
   
   
10. Don't insist on an all-cash deal. In some industries, buyers may expect a 20-percent discount for paying 100 percent up front. You may also look to partnership strategies as a form of succession planning - contact Medici Capital about our partnership facilitation programme.
    
    

If you're thinking of selling your business, contact Practice4Sale to find out how you can anonymously list your business for sale; ensuring that it is advertised to professional practitioners in a discrete and confidential manner.

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