Bye Bye Business!!
Date: 16th February 2011
When you are planning to say bye-bye to your business it is an emotional, financial and practical process to go through. This process can be filled with apprehension, impatience (everything can take so long) frustration and excitement.
The first step to take is to come and see your friendly accountant – that’s us! We can help you with the steps that you need to go through to make the process manageable and work towards the outcome you desire.
We will help you to prepare an Information Memorandum. This is a summary of all aspects of the business. These are the things that prospective buyers want to know, but it is how this document is prepared that is the key; a good mix of facts, numbers, background and opportunity needs to be presented elegantly. It is this document that can make all the difference to the purchasers perception of the value and knowing exactly what they are getting into. We want to provide as much information as possible and think about satisfying any question or concern a prospective purchaser may have. Of course this is where we present the financial history. We will show you what you need to include.
A good rule of thumb to bear in mind is to sell on emotion and justify with logic. This is speaking in general terms of small to medium businesses where folks may be looking to purchase a business for a perceived lifestyle, are attracted by the specific work involved or chasing the Kiwi dream of working for themselves and making some money.
Most importantly we will ensure that you have the correct confidentiality agreements to provide potential purchasers to ensure that this sensitive information is kept under wraps and top secret.
There are several avenues available to help with selling a business; using a Real Estate firm or business broker, or selling privately. Depending on your industry, size and network we can discuss which road is the best for you to go down.
We can give you an indication of the costs involved with selling, guide you towards some great legal advice and chat with you about the tax implications. This is the getting to the nitty gritty and comes a little ways down the track.
Selling a business is more than just facts and figures. It’s a parting of ways and new beginnings. Timing can be everything, so planning is essential.
So if you have reached a decision that it is time to move on, we say come and see us, we can have a cup of tea and map out a plan. Sometimes in our network we might have heard of people looking to purchase or merge.
We look forward to help you sell!
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