You can only sell your business if someone is prepared to pay for it. If you can't identify strong reasons - that can be easily substantiated - why your business would make a good acquisition, it's likely to be difficult to find a buyer.
Would my business be attractive to a buyer?
Ask yourself the following questions:
- Is the business healthy? A business in trouble is difficult to sell and potential buyers are likely to wait until they can get assets at a knockdown price - although sometimes financial distress can be a motivating factor to a buyer who can see a turnaround opportunity.
- Are the basics in place to make the business attractive? Buyers like well-organised businesses with strong management. See streamline your business operations when selling your business.
- Does the business have a good financial record? Buyers prefer a record of smoothly increasing profits with good growth potential. See show strong financial performance when selling your business.
- Can you identify potential trade buyers and a good reason why they should want to buy your business? Buying a business can be disruptive and expensive. Potential buyers may prefer to concentrate on their existing operations.
- Are the existing management team interested in buying the business? You may find that they are the only potential buyer and that they only offer a modest price.
It usually pays to start planning a sale well in advance. This gives you time to groom the business - fixing any issues which could dramatically affect its value and making it as attractive as possible to potential buyers.
You may also want to get a preliminary valuation before you offer it for sale. For more information see value and market your business for sale.