“At Franchise Domain we recognize the hard work, commitment and sacrifice which franchisees and business owners make in order to successfully operate their businesses. We also recognise that when it comes time to sell , the process of effectively securing buyers can be a huge challenge and distraction away from your daily obligations. As a result, Franchise Domain is committed to providing a ‘turnkey’ ‘listing’ and ‘sale’ service to assist you in this very important process”
We also offer services such as exit planning, pre-sale preparation, valuation and sales price, marketing and advertising, screening buyers, due diligence and negotiations. As with any specialised service you should always obtain the assistance of an experienced professional to help you with the sale of your business.
Key points to consider during this Sales process are :
- Preparing to sell your business
Proper planning to sell your business will ensure you get the best results. We will talk to you about what you need early in the process and guide you from our first meeting.
- Keep focused on running your business well.
Don’t become distracted with the sale of your business to the extent that your business suffers. Keep focused on your day to day operations so that your sales, costs, and profits are where they should be. Since the selling process could take longer than planned you will need to keep your business running to its peak performance. Declining sales and increasing costs will not help your final sale price.
- Price it right!
Don’t fall into the trap of over-pricing your business. Every vendor wants top dollar but be reaslitic. Potential buyers will not spend the time neccessary to negotiate down an unrealistic starting price. Consequently overpriced businesses will sit on the market longer and perhaps not sell at all. Our consultants will provide guidance to you in relation to pricing.
- List furniture, fixtures and equipment.
All buyers will want a comprehensive list of equipment and fixtures . Equipment should be in fair repair so we recommend that you make time to sort these out before listing your business. Maintenance and repairs completed prior to sale listing will give the prospective buyer less leverage for negotiating a lower price later on and speed the sale process up.
- Freshen up the look of your business before listing
The best looking businesses will usually sell first! Buyers can reduce their offers significantly if they feel that the business needs money spent on it.
- Offer an attractive lease.
Buyers and their banks will seek the longest lease term possible in order to offer the best price. It pays to talk to your landlord /franchisor early if feasible.
- Be fully transparent about the facts of the sale.
Buyers will want to know why the business is being sold. They will want assurance that the sale is not due to business underperformance or some other issue that they will need to deal with. Buyers will appreciate honesty about this and are more likely to proceed in discussions knowing they’re dealing with an honest owner.
Also, make sure that you are completely transparent about any issues which the buyer should be aware of . Most negatives can be overcome if known by all parties from the beginning. Nothing kills a sale quicker than a ‘surprise’ during the sale process particularly if there is a sense that one party is acting dishonestly.
- Be prepared for some flexibility
Don’t fall into the trap of making emotional decisions. Even ridiculous purchase offers will keep the negotiation process moving so that at some point an acceptable offer may be reached. Be willing to negotiate and show empathy for the buyer. Whatever you do don’t offend or be offended by anything in the sale process as very unlikely offers can come good in the end. Try to resolve the toughest issues with objective criteria, independent advice and market criteria.
- Best practices to sell a business is to wrap it up quickly.
Even the most eager buyer can change their mind overnight. Don’t keep your buyer waiting because you’re too busy. After a commitment to buy, get a sale contract out in a timely manner. Don’t stall the process at any stage.
Contact us for an obligation free consultation about how we can assist you to list and sell your business.