We are at that wonderful time of year…. the Christmas decorations are up, the carols are playing, and depending on your business it is either organised mayhem or quietening off as people head for the shops! For many SME owners this is also the time that you start looking at selling your business in January.
So, if you are one of the lucky owners who now finds that you have time to think about selling your business, what do you have to consider? As with all you business transactions preparation is the key to success.
What to remember when Selling Your Business in January
Listed below are some of the things you may wish to start organising in preparation, pull this together in a ‘Purchaser File’ and keep updated. This will save time (and panic) should a buyer come along straight away.
- The last 3 years accounts plus the draft accounts for this current year to date.
- VAT returns to date.
- A mini operating manual – ie office admin, order booking/invoice procedures
- A short overview of where you see the business going in the next 3 years plus a business plan if that is prepared.
- Anonymous details for your clients/customers, invoice amount, postcode, and feedback received.
- A copy of your standard terms & conditions of trade.
- List of memberships to professional / trade associations.
- Copy of any finance agreements (if applicable).
- Full inventory of fixtures & fittings included in sale
- Details of any computers and software.
- Details of purchase ledger including subcontractors (again anoNymous) showing skills, contracts / terms, spend to date.
- Press articles or independent reports.
- Website, internet names and certificates.
- Insurance policies and details of claims.
- Details of Lease, floor plans and any relevant planning permission.
- Details of stock & work in progress.
- Details of trademarks, patents and design rights.
- Details of vehicles including all V5cs, service records and MOTs if applicable.
- Copies of marketing / sales brochures.
- Full inventory of assets.
- Full list of staff again anonymous.
Prepare as much as possible on simple white paper with no reference to your business name. Also note, a lot of the above list will be for the purchaser to look at but not remove from the meeting.
This list is not exhaustive but by pulling together this information when you have a moment or two to spare now, in a potentially quite time, will reduce the pressure on you when you are selling your business in January.
If you would like further assistance with the sale process, do not hesitate to get in touch: firstname.lastname@example.org or via our contact page.