http://www.informgroup.com.au/wp-content/uploads/2014/04/strategy.jpg 146 146 Wayne Moloney http://informgroup.com.au/wp-content/uploads/2014/04/logo.png Wayne Moloney2012-04-04 13:11:062014-05-30 08:05:216 Key Points when Selling a Business
In a recent article by RSM Bird Cameron six key pints were highlighted when considering exiting a business. The key learnings from the article are:
- 76% of business owners surveyed have no plan to exit their business. This is significant when you consider the value that is generally tied up in a business.
- It takes 3-5 years to prepare a business for sale. Doing this preparation later may cause a delay in exit plans.
- 69% of business owners have never had a valuation of the business.
- 55% of owners were not aware of capital gains tax implications in regards to the sale.
The six key points to consider before selling:
- Prepare for the sale at least five years prior to selling.
- Strengthen ties with key customers and draw up contracts where possible.
- Train staff to run the business without the owner being present.
- Speak to staff about selling the business.
- Prepare documents for sale of business as early as possible.
- Do not sell if the timing is wrong, be patient and be prepared to wait until the right buyer is found.
The full article can be accessed here.