You might not be planning on selling your business for a long time. But it’s never too early to get prepared.
If you are selling the business to an unknown buyer, they will want to see evidence of how the business is performing, and why they should invest in your business.
So, you need to be in a position to provide this information.
To do this, consider the following:
Update your accounts
You should make sure your accounts are in check regardless. But this becomes even more important when selling your business.
If you aren’t already using cloud accounting software to automatically update your accounts, think about making the switch.
This will help to minimise any human errors which could result in gaps in your accounts.
Review your contracts
If you’re not looking to sell your business in the near future, there will be less pressure on reviewing your current contracts.
But keeping a close eye on the terms and conditions of your contracts, such as with clients or suppliers, is good practice.
But you need to ensure you don’t disclose information about the deal to clients or suppliers before you are legally allowed to do so, especially if you are selling to a PLC.
Elevate your business’s performance
Potential buyers will want information on your business’s cash flow position and its projected growth.
But they will also want to know if there are risks that they need to be aware of.
By evaluating your business’s performance in advance, you can put plans in place to minimise the weak areas of your business.
If you are not able to completely resolve them by the time you sell your business, you will be able to demonstrate the steps you have taken to address issues.
Contact us for advice on preparing your business.