Manish Khanna is the founder and CEO of Business2Sell.com.au, a website where business owners and brokers can join the service and list their business for sale in Australia for free.
Are you thinking about selling your business? Selling your business may be one of the most important decisions you'll have to make as part of the business cycle. According to the Northern Territory Government “the average life cycle for owning a business is between 7 to 14 years, and many people have thoughts of 'moving on' around then”.
Before you start talking numbers and figures with prospective buyers, or handing over the keys to your business, there a number of important factors that need to be considered. These include:
- Timing of the sale: the timing is a very important aspect to consider. What is the trend of the market, are people looking to buy at the moment? You must only consider selling the business when the general sales in the industry are good.
- Market value of your business: what is the estimated market value of your business? It is a good idea to arrange for a professional valuation of your business. You should make use of a qualified business broker to help you maximize the selling potential.
- Tax implications: it is important that you know the possible tax implications of selling your business. You will need to speak with an accountant to find out all the financial specifics of the transaction.
- Asking price for business: the asking price must be realistic, warranted and must be negotiable with the buyer.
- Feasibility of sale: ask yourself “will the sale of the business improve the current financial position of the business?”
If you do get an offer from a prospect who is interested in buying your business, you should look at this as a positive sign that your business is viable. It means that the potential buyer has been looking at the strong performance of your business and has identified you as a competitor or threat to the success of their own business. It is a good idea that when such a genuine prospect shows up to meet with them, discuss the business, and also show them around the place.
If all goes well and the sale of your business is arranged a deposit of up to 10 per cent should be taken and held in trust by your legal representative or solicitor. The sale must then be finalised within 30 days for which full payment must be made. If you have done your homework and followed the due diligence of selling the business then you are assured to receive a healthy profit from the sale.
- Related Articles
- Related Q&A
- The Pros and Cons of Business Brokers
- Selling Your Business - Why Use a Business Broker
- Business Brokers
- Business Brokering - Why Use a Broker?
- What is a Business Broker?
- A Review of Empire Business Brokers
- Why Do You Need a Business Broker?
- Selecting a Business Broker - Look Out for these Red Flags
Work at Home Guide Review
By: Colon Bolden | 25/12/2009The key to finding a legitimate work at home job is knowing where, when and who to go to. The Work At Home Guide is the largest, most up to date directory available today. A lot of people have not heard of this guide which has over 5,100 work at home jobs listed.
Shaklee Distributors-Read This Before You Do Business
By: Anam Uddin | 25/12/2009Shaklee does $250 million in product sales a year, those figures exist because of the Shaklee distributors who run around being all busy bugging family and friends, prospecting strangers and trying to do business with people who have no business being entrepreneur's. With all this activity on the part of the independent distributors trying to sell Shaklee products it's a shame many don't go on to earn full-time incomes.
What you need to Know
By: Zakie | 24/12/2009Developing a why in your MLM Network Marketing Business is a major reason for success. Have a WHY to make your Cry.
Top MLM companies – What is the best MLM company to join?
By: Jim Green | 24/12/2009We summarize the top 9 most highly rated MLM companies in the network marketing industry. This article summarizes and provides company updates for the choices made by MLMInsider.com, which publishes the Distributor's Choice award each year.
EARN $ 15000/- PER MONTH WITHOUT INVESTMENT
By: Pinki Gupta | 24/12/2009Not earning enough money from a job; a need to have a better work-life balance and need to spend more time with family are some of the main reasons why many people are looking for opportunities to earn money on the internet.
how to distinguish ugg boots
By: aaryn | 24/12/2009how to distinguish ugg boots
Making Cashflow On The Web Fast - Simply As 1 - 2 - 3 As Long As You're Using Article Marketing
By: Dale Dupree | 24/12/2009However, should you be totally green, then the following will still make sense (hopefully) although you may need a bit more directions which is freely available for the asking.The most important step is to write an article using
Creating Money On The Web Quickly - Simply As A - B - C As Long As You're Using Article Marketing
By: Dale Dupree | 24/12/2009I saying notepad due to the fact that it takes all the editing concerns away and you can simply concetrate on the job at hand which is to create a quality article that has new ideas,Google loves this. Be sure to place your keyword phase at least 3 times in a natural way as this definitely helps w..