3 tips to sell your business easily

From our experiences, it turns out that excessive reliance on the owner-manager often becomes a stumbling block when selling a business. The more a company depends on one person, the harder it is to sell and the more problematic it becomes to determine an accurate value.

Tip 1: Make your business less dependent on yourself

Therefore, our first advice is: "Think about later today."

Start transferring responsibilities as early as today. This process takes time, so create a plan. Document tasks that cannot be transferred and map out the existing knowledge and know-how (such as key clients, suppliers, procedures).

There is no "best time" to sell a business. Some entrepreneurs work solo for decades, while others see their business as a retirement plan or are ready to move on. Even in a forced sale due to health issues, having a well-developed procedure manual is valuable.

Good preparation is crucial. Set personal goals and consider a business transfer within the family, to an employee, or a known business associate. Make such a transfer discussable in time and do not assume that your dream buyer will immediately agree with you.

For the next step, good preparation is required to think about what you want to do after the sale. If you see the sale as part of your retirement, you should clarify what proceeds you expect and whether you want to continue working for a period (paid or unpaid).

The process of a business transfer always takes longer than expected. Talk to trusted people such as your partner, accountant, other entrepreneurs, or a transfer advisor. With concrete sale plans, you can choose to handle things yourself or outsource the process. Overnamemarkt is happy to help you further.

Remember: make sure you become dispensable in your business. This makes your company easier to take over and can result in a better sales price.

Read also: https://www.overnamemarkt.be/nl/adviesopmaat

UNIZO Business Transfer: Tailored advice for small business owners. Professional and affordable advice tailored to self-employed entrepreneurs.

From our experiences, it turns out that low (visible) profitability often becomes a stumbling block when selling a company or business. The more profitable your company is, the easier it is to sell and the easier it is to determine an accurate value.

Tip 2: Show the profitability of your business!

Start negotiating with your accountant today. Where is the profit? Is a correct remuneration being paid to you as the owner-manager? If the bookkeeping has mostly focused on showing as little profit as possible, the accounting rules need to be adjusted. This process takes time, so create a plan.

Ensure a clear accounting system that clearly shows that your business is profitable. Avoid complex structures.

Good preparation is half the battle. Set personal goals and think about what you want to do after selling your company. Do you see the sale as part of your retirement plan? Make it clear what proceeds you expect and whether you want to continue working for a period.

Talk to trusted people such as your partner, accountant, other entrepreneurs, or a transfer advisor. With concrete sale plans, you can choose to handle things yourself or outsource the process. Overnamemarkt is happy to help you further.

Remember: show the profitability of your business. This makes your company easier to take over and can result in a better sales price.

Read also: https://www.overnamemarkt.be/nl/adviesopmaat

UNIZO Business Transfer: Tailored advice for small business owners. Professional and affordable advice tailored to self-employed entrepreneurs.

Tip 3: Be clear about your motivation to sell your business now

From our experiences, it turns out that ambiguity about the owner-manager's motivation often becomes a stumbling block to gaining the necessary trust from potential buyers.

Why do you want to sell your company now? Clearly communicating your motives supports the confidence needed to smoothly sell your business.

Go through the following questionnaire - See also our online Business Transfer Scan

• Why do you want to sell your company?
• When do you want to sell your company?
• Do you want to sell your company all at once or gradually?
• What minimum sale price are you looking for?
• Who would be the ideal buyer?
• What negotiation period is acceptable to you?
• Do you want to be actively involved after the transfer?

The answers to these questions provide you with guidance during the sales process.

Examples of reasons to sell your company:

• Age, end of career
• Securing built-up value
• No suitable successor within the family and/or staff
• New challenge (be specific)
• Family circumstances (e.g., divorce)
• Health (yours or your partner’s)
• Moving abroad

Want to sell your company smoothly? Start with good preparation!

View your company through the eyes of a buyer.

• What are the strengths of your business?
• Where are the growth opportunities?

To give the prospective buyer as much certainty as possible about the continuity and potential of your business:

• Ensure that administration and reporting are in order. Check this yourself via a GRAYDON report.
• Properly document all contracts and agreements.
• Make your company as independent of you as possible.
• Ensure stable or growing turnover.
• Diversify your clients and suppliers.

Measures that positively impact profit and free cash flows and increase your company's value:

• Save costs - the quickest way to increase profit.
• Increase revenue - get more revenue from existing customers, sell additional products or services, or activate passive customers.
• Optimize working capital - get debtors to pay faster, reduce inventory levels, and negotiate longer payment terms with suppliers.

Remember: the process of a business transfer always takes longer than expected.

Talk to trusted people such as your partner, accountant, other entrepreneurs, or a transfer advisor. With concrete sale plans, you can choose to handle things yourself or outsource the process. Overnamemarkt is happy to help you further.

Remember: be clear about your motivation to sell now. With clear motives, you give potential buyers confidence and your company will be taken over more smoothly.

Read also: https://www.overnamemarkt.be/nl/adviesopmaat

UNIZO Business Transfer: Tailored advice for small business owners. Professional and affordable advice tailored to self-employed entrepreneurs.