“How to Sell my Business” and Other Frequently Asked Questions Answered
We briefly answer questions, such as “is a checklist available if I want to sell my business?” below, helping you to prepare your business for a seamless selling process.
What is The First Step if I Want to Sell My Business?
To ensure a hassle-free marketing and selling process, prepare the financial records of the entity to help the buyer assess the value and potential of the venture. A lack of up-to-date records and accurate information can cause the sale transaction to fail. Make sure you have proof of profitability. Once the buyer is satisfied with the information provided, he gives a letter to the broker to confirm his agreement.
Why is it Important to Meet All the Requirements of the Purchase Agreement if I Want to Sell my Business?
Every purchase agreement has suspensive conditions. Unless these conditions are met, the contract cannot be valid. These conditions are listed under the Memorandum of Agreement. If you are unsure about the meaning of the conditions or wording, ask the broker to clarify. It is essential that you understand the contract wording. If you do not agree with a particular condition, consult with the broker who can negotiate with the buyer on the terms before you sign.
Do I Need to Perform a Stock-Take Before I Sell My Business or Can It Wait Until The Buyer Takes Over?
Though a second or even third stock-take is advised for when the buyer does their due diligence and on the day of takeover, it is essential to perform one before you market the business as for sale. The stock-take forms part of the valuation process. The broker can advise you on how to arrange and perform the stock-take.
Why Do I Need an Asset List If I Already Have A Stock Inventory List When I Want to Sell My Business?
The stock includes items that are used in the daily operation of the venture, and which can be sold. The asset list contains full descriptions of all the equipment, including fridges, computers, cash registers, vehicles, security equipment, and the likes. If a vehicle is included in the sale, make sure it is roadworthy to enable the transfer of the vehicle to the buyer’s name. You are, by law, obliged to inform the buyer of any defects in equipment, including vehicles, before the sale is finalised.
What About Equipment That I Lease or is Still Financed?
You must inform the buyer about equipment that is not included in the sale. In addition, you need to inform the buyer about equipment still under finance and the same for assets that you rent. You will need to assist the buyer in taking over hire purchase agreements, as well as equipment rental agreements where relevant. Where possible, settle hire purchases or arrange to have such settled upon the sale of the business. Consult with our brokers about the best route to follow.
Do You Have a Checklist That I Can Use When I Sell My Business?
Yes. Use the Buyers checklist on the website and get in touch for professional help in preparing and selling your particular venture.