Cash takings that don’t flow through the books can’t be substantiated. When businesses sell for a multiple of earnings, owners would be better off paying the tax and GST, showing higher profits and having a higher value.
Purchasers want to know there’s more upside to come, selling on the way down is hard.
“It’s all in my head” is not a good answer! Purchasers want to know that systems are documented, current and accessible. Quick plug for our provider www.waywedo.com
Business sales can be complicated when leases need assigning. Amount, term, options, outgoings and a positive relationship with the landlord are all key.
Working with your best mate sounds great – just make sure that you also employ the right professionals.
Know the market (or engage an expert who does!)
Pricing, offers, negotiations, employees, due diligence, satisfying conditions, earnouts – all enough to send the sanest person crazy!
Don’t want to, different skills, parents need the money etc etc. Often Plan B will be third party sale – time to prepare!
It’s hard running a business when you are sick. It’s even harder selling a business when you are sick and haven’t planned your exit.
You don’t have to leading edge but businesses that ignore technological change may be left behind and become worthless.
“Show Me the Money!” Potential, reputation, location, contented staff and many other factors make a business attractive but ultimately the key thing investors look for is a history of profitability. As Jerry Maguire shouted “Show Me the Money!”