Want To Sell Your Business? Here’s How Experts Can Help

Are you considering selling your business? Wondering whether or not to get expert help to sell your business quickly and efficiently? Here at Eden Exchange, we always advocate for using experts (like us!) to help you when trying to sell your business.

As experts in business buying and selling, we’ve consolidated all the reasons we think that working with experts is the best way to sell your business quickly, get the price that you want, and do so in a stress-free manner. Learn more about selling your business with expert help below.

Preparing to Sell Your Business

While the ultimate goal is to sell your business, you must first prepare your business to be sold. This will require a well-thought-out exit strategy. If you implemented an exit strategy when first starting your business, then you’re going to be ahead of the curve here. Many people don’t consider a point where they may want to leave their business at the start, but it can really help when it comes time to sell.

So, how can you prepare your business and make sure that it is seller ready? Here are a few recommendations we always make to our clients when preparing to sell.

Determine a Reason for Selling

Considering your reasons for selling may seem redundant when trying to get a reasonable price and move on from your business, but your reason for selling will help inform the way that you do things in the process. For example, if you want to sell so that you can retire, you will need to ensure you have money set aside to live on and a life plan for once you’re no longer running a business.

If you want to move on to new ventures, you may need capital for investment, which means you will want to get the most out of your business sale so you can start your new venture with as much money as possible. For those who are selling because they feel they have taken the business as far as they can, a specific buyer with certain credentials, experience, and innovation may be top of the list when looking for a buyer.

So, the first thing you need to do is pin down your reasons for selling.

Value Your Business

At the close of the 2022-23 financial year in Australia, there was a net increase of 0.8% in business entries, with a 15% business exit rate. This means there were slightly more businesses opening than closing in the last financial year. When compared with a 7% net increase in 2021-22 and a 3.8% increase in 2020-21, this could suggest a period of economic uncertainty for businesses in Australia.

But what does this mean for selling your business?

First of all, it means that you may be entering a highly competitive selling environment. With more uncertain economic times ahead, people are less likely to be looking to invest in new businesses, so what makes your business different? What value does it have that makes it worth the risk?

These questions are crucial when it comes to valuing your business. If your price is too high, buyers will be put off, so make sure that you’re correctly valuing the business and taking into consideration all of your assets, both tangible and intangible.

We always recommend working with an expert to value your business. The main reason for this is that you are incredibly close to your company and have spent years putting work into it. That means that, rightly or wrongly, you’re likely to value it in a biased way. You may ask for much more than it's worth due to an emotional connection with the business, and this can put buyers off.

Work with a professional to have your business valued and ensure that it doesn’t sit on the market for a long time.

Organise Your Financial and Legal Documents

Anyone looking to buy your business is going to do their own due diligence on your business financials, legal documents, operations, and any liabilities that you have. To save yourself any surprises and to make things easier for leads, get your affairs in order before you even list the business.

This means getting your finances sorted and ensuring you have a detailed history of finances for your potential buyers to sift through. Note: The End of the Financial Year (EOFY) is always a good time to sell simply because you have to have all your affairs in order to complete taxes.

If you have any outstanding litigation or liabilities, you will either need to sort these out and ensure the matters are closed or consider reducing your price and briefing potential leads about said issues. If you’re going to leave them with matters to sort out once they buy, it is only fair that you reduce the price as a sign of good faith.

Lastly, look internally at your supply chain and operations. Are any vendor contracts nearly up? Do you need to reapply for any licenses that are necessary in your industry? Could you streamline processes to make the business look as attractive as possible?

Getting your ducks in a row is a simple and easy way to make your business look as attractive as possible.

Note: while your business finances may not be the most attractive, it is always best not to lie or inflate them. Any buyer is going to look into finances, and they will soon see the discrepancies for themselves.

Market the Sale

The last thing you will need to do to get your business sale going is to market the sale. Let people know that you are selling by listing your business on selling platforms like Eden Exchange or using word of mouth. 

The marketing side of business selling is often an aspect that people shy away from. Working with a broker, in this instance, is always a good choice for those who prefer not to do the marketing themselves. A broker is likely to have a list of contacts already available and looking to buy.

If you are listing your business on a selling platform like Eden Exchnage’s DealXchange, then it is essential to write a compelling listing and include high-quality photographs. In addition, platforms like DealXchange often have spaces for you to create effective marketing campaigns and guidance from experts in the field.

Why You Should Work With Experts to Sell Your Business

Selling a business includes a lot of preparation, marketing, and legwork that you may not have time for as a one-person team. But you may shy away from experts, like business brokers, because of the extra cost or outside input.

We understand that selling your business can be a personal endeavour. After all, you’ve spent years building the company from the ground up, and you want to get a reasonable price for all your hard work. It may feel like outsiders cannot see the value that you can in your business, but this couldn’t be further from the truth.

Here at Eden Exchange, we have seen thousands of owners sell their businesses using our platform. We have been facilitating sales for years, and in our time, we’ve seen just what each individual company means to its owners. So, here is why we think you should work with experts when selling your business.

Experience and Expertise

A business selling expert has experience and expertise that you don’t have. While you may be an expert in your field, they have knowledge of how businesses are sold, what needs to be done to get the right price, and the ins and outs of the legal side of business selling.

Confidentiality

Selling your business means that potential leads get to look at a lot of sensitive information regarding your business. This means that confidentiality is of the utmost importance. At Eden Exchange, we have a secure deal room to protect your business in which you can conduct all your due diligence and where screened buyers may look at sensitive documents.

Other experts may use NDAs or a close network to ensure everything is kept safe from prying eyes while you’re selling.

Marketing and Network

Marketing isn’t everyone’s cup of tea, and for that reason, using an expert might be in your best interests. A business selling expert will know which parts of your business to put in the spotlight to make it the most valuable to potential buyers.

Marketing a business is also a lot of work, so working with an expert can reduce this extra stress.

Due Diligence and Legal Compliance

As we have mentioned, business selling comes with a lot of due diligence. Still, the help of professionals like accountants, lawyers, and brokers can ensure that all of your documents are up to date and make your business look as attractive as it can.

Screening Buyers

Every potential buyer you get will need to be screened. You will need to ensure they are who they say, that they have the credentials to take on your business, and that they have the funding to buy it from you. This requires a lot of extra legwork, which a business selling expert can help you with.

Negotiation and the Deal

Business selling experts will have brilliant negotiation skills that help you get the best price possible for your business. They will also be able to complete all the paperwork for the deal to go through swiftly and in a compliant way.

Continuity of Business

Last of all, while you’re trying to sell your business, you will also need to keep running it. If you have hired someone to help you sell your business, you can focus on the continuity of your business while it is on the market.

How Eden Exchange Can Help

Eden Exchange has been changing the way Australians buy and sell business since its inception. It boasts a network of thousands of active buyers who can view your listing from the platform, making selling your business easy with Eden Exchange.

The DealXchange platform is an innovative all-in-one space that consolidates everything you could need to sell your business. With lead generation, custom matches with qualified buyers, a secure deal room for document sharing, personalised NDAs, and a customisable user interface; the platform takes all the stress out of selling your business.

On top of this, when you become a member of Eden Exchange’s network, you can gain access to experts in the business selling industry who can offer insight, advice, and guidance on how best to sell your business.

If you would like to learn more about DealXchange, book a free demo now.

Final Thoughts

Selling a business is only made more accessible when you hire the help of experts. While you may consider the extra expense a drawback, the cost is outweighed by the benefits of working with experts.

Not only do experts provide invaluable knowledge and insight, but they can also take the stress out of selling, help you screen leads, and negotiate the best price for your business.

Eden Exchange is an innovative platform for business sellers. With our help, you can sell your business seamlessly and get the best price possible for your business. 

Want to find out more about us? Contact the team at Eden Exchange today.

Who we are

Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit www.EdenExchange.com and connect with our engaged and multidimensional transaction network today.