The business of selling your business

The business of selling your business

If you think selling your house is stressful, try selling your business! Graham wades into the murky waters of how to prepare your business for market.  

I've heard it said from several sources that we are about to head into the biggest exchange of inter-generational wealth that the world has ever seen—this sounds exciting. We are about to be hit with a wave of business sales from Baby Boomers who are throwing in the towel on the businesses they’ve invested their lives into. Hopefully there will be buyers. 

What does this mean and what are the opportunities?

Well, firstly, if you are thinking of selling your business in the near future it needs to stand out form the crowd. It needs to be saleable or probably the correct phrase is “it needs to be buyable”. If we relate it to the housing market the same rules apply: identify what sets your business apart from the crowd and display it in a way that is attractive to buyers.

At Velocity, in partnership with IIF, we’ve been running seminars in the business owners’ space for some time and will continue to do so, particularly targeting the art of buying and selling businesses.

Over the next few months I’ll be posting our speakers’ key points.  But lets begin with a few to get the ball rolling:

1. Get your accounts tidy

If you’ve been mixing up personal with business income and expenditure it’s time to tidy this up. Get your accounts to actually reflect what is going on in your business.

2. Get some feedback

Get some helpful professionals to cast an eagle eye over your business and let them point out some things that you, after spending so long in the trenches, have become blind to. A few simple changes could bring about significant differences.

3. Start the sale folder

Start collecting, in one place, all the documents you need for sale: leases, job descriptions, contracts etc.

That's enough to start with. If you need an eagle eye cast over yours or someone else's business, give us a bell for helpful names.

Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.

Have you been to a Velocity property seminar?

Are you buying or know someone that is buying?

Our First-Home Buyers Seminars in Wellington Central, Wainuiomata, and Johnsonville (and anywhere else that will have us) are perfect for getting your head around the process. The sessions include great tips on how to work with lawyers, builders, mortgage brokers and real estate agents.

Are you thinking of selling in the next six months?

Again, we have seminars in Wellington Central and Johnsonville. Our team of knowledgeable experts will give you tips on methods of sale as well as how to manage that dreaded bridging finance. 

Seminars are free-of-charge and are a perfect date night (well, to be honest, you might like to tag on a rom-com after the seminar to keep the other half happy).

Check our link here for venues and times. Essentially, all the time, everywhere!

How do you know if your accountant is doing a good job?

A good accountant is a key member of most people’s financial support team. But how do you know if your accountant is the Steve Hansen to your Kieran Read?

I am lucky enough to know lots of accountants ... also plumbers, lawyers, doctors, musicians, baristas and bar staff ... So how do I know if any of them are doing a good job?

Well, let’s start with six checkpoints for accountants:

1. I don't like accounting surprises, as they are normally not good surprises! Chocolate is way better than tax when it comes to surprises.

2. I want to know how to improve my business.

3. I want to know how my business is tracking compared to industry norms.

4. I want tips on how to save money in my business.

5. I want help with my cash flow!

6. I want advice on how I can buy other businesses.

Okay, so ask yourself, are you getting the above advice from your accountant? And are you prepared to pay for it?

Not all accountants are created equal and you often get what you pay for (often, but not always). If you are only having annual meetings with your accountant then you are missing out on a goldmine of information and assistance. My observation is that those clients I see who invest in good advice from their accountant reap the rewards.

Think you’ll need an accountant change? Please drop me a line and I can give you the address for your local goldmine (a.k.a. accountant).  

Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.