It is an interesting point. Many owners wish to sell but can’t find a buyer and end up closing their business losing not only the jobs tied to that business but also the know-how, resulting in some cases to skill sets completely disappearing. Not to mention the lost opportunity of making money on the sale and just as importantly leaving a legacy.
With the current changes in employment and pay stagnation across Australia, many more people need to go into their own business to control their future and be able to realize their dreams. In the end it comes down to too many businesses poorly prepared for sale, and too few buyers who know how to buy. Get educated, get an adviser, and get on with it!
According to Australian Bureau of statistics just 21% business actually achieve a sale – that’s just 1 in 5!
When surveyed 4 out of 5 owners expect to sell their business as part of their retirement plan.
You see the problem right? .
Especially when you consider that thanks to the Baby Boomer generation currently around 40% of businesses owners are aged 55 and over . This means that for the next 10 or so years an unprecedented amount of business will come to the market for sale.
So how do you plan to stand out from the crowd?
Now rules of supply and demand mean that values are likely to be impacted but also (and this is important ) buyers will have a far greater choice on the investment they do or do not make. In all likelihood they will choose the best and least risky businesses to invest in.
So if you want to be 1 in 5 that sell their business you will need to have a plan and If you intend to sell in the next 10 years you should be ready to sell NOW
Here is why
1. Timing- You cannot control the marketplace.
It is imperative to seek your buyer when the outlook for sales and growth in your business are positive and are likely to remain so. Put simply – if you do not leave something on the table for the buyer you are unlikely to see the top value in a sale.
2. You Need to Look attractive to buyers –
Sellers see all the benefits of their business but buyers see RISK … To be attractive you need to look less risky De-risking your operation and taking YOU the owner out of the BUSINESS process can take time .
3. Having a strategic approach to finding your ideal buyer. –
Getting on ‘their radar’ is about planning and the right approach.
Strategic selling is the process by which you seek out your ideal buyer based on what is in it for them. A good business sales expert will be proactive and make contact with companies and investors where your customers , services and products add value to theirs.
Contact us for a free 2-hour initial meeting. Or visit our web page below for free valuation and exit planning tools.