Maximising the Real Sales Value of your business

Maximising the sale proceeds when you sell your business is a matter you can plan for!

If you start preparing for the sale of your business at the earliest opportunity (you might even start as soon as you acquire the business), then this should mean you should be better placed to ensure the proceeds exceed what you paid for it.  This is, of course, a radical approach, but if you think about it, your intentions then should enable you to enhance what you have with a great chance of good gain.  This approach is so important and something you mustn’t overlook.  P-L-A-N-N-I-N-G is the most important thing for you to consider.

It is incredibly hard to sell any business!  Just look at the classifieds in the printed media or on the internet.  In some cases you might even have realised that some businesses simply cannot be advertised for sale – the impact on the business can be severe from employees, creditors, suppliers, customers, etc as that act is seen as being detrimental to the business.  Many businesses are advertised and most do not get sold!  Most actually are closed by the owner simply because NO buyer can be found – not a great way to finish up when you thought that what you worked for was your retirement fund or at least a source of capital that might be useful.  And do not forget that even when the doors are closed, the costs may still come in (rents, etc) and of course the invoices do not always get paid, because your debtor is no longer able to use your services, so their need to pay is diminished – these Mr Business Owner are a fact of life.

It is even harder to sell them for the price you seek, as for getting cash out, that can also be a challenge.  Selling your business can be difficult, even if there are today, more brokers than there has ever been! What does that all mean, in simple terms?  It means you must protect your most important asset by preparing it for sale and doing that well.  Planning for its ultimate sale is the most important matter you should ever consider as regards your business.

The sale is only one aspect to consider, there are of course matters such as continuity; succession; health; death; marriage breakdowns; there are a plethora of matters to consider.  We all age, we get older and get tired, we can’t do today what we used to do.  Not everybody agrees with that, but if youth is on your side, I guess you can be excused.  At Investor Properties Business Acquisitions Division we can help.  We can show you what you might need to consider.  We cover these by showing you options, but you have to consider lots of things.  We can help you plan by:

1. Enabling you to sell your business for all it is worth
2. Succession planning
3. Sourcing businesses to take over or to enhance your business
4. Educating buyers to purchase profitable established business and
5. Showing them how to use OPM (Other People’s Money)

Enabling you to sell your business for all it is worth – this needs to entail a good sound plan.  You will probably have recognised that selling your business is a major event, whatever the business size, be it from a small “mum and pop” operation to a large industrial manufacturer; whatever the type of business – from a professional practice through to a rapidly expanding high tech enterprise.  What you seek from selling it, is the best result as it is likely the most important business outcome you will ever achieve.  We will show you how to be thoroughly prepared to engage in selling your business and to achieve the best possible value possible from your sale.

Matters to consider using our processes are:

• Deciding what / when you want to sell
• Picking the best time to sell
• Doing some market research
• Getting the supporting paperwork prepared
• Marketing your business
• Dealing with enquiries
• Completing the sale
• Any other matters that might arise.

If you aim to sell or retire from your business and your motivation is to release capital; or if it is the need to quit a poor performing business; maybe it’s ill health; what about if you have moved from one project to another or even moved to a new location; or simply it was because you have something better to do, then the way to deal with what you have, is to look at how you might get the best result possible and that is where we can assist you.

Succession planning – all businesses lose good people. Whether it’s for personal or professional reasons; planned on unplanned; losing talented employees can leave a large gap in any organization. Family situations especially, need succession planning to ensure the continuity of the family business.  Filling critical vacancies can prove to be challenging, expensive and time-consuming. That’s why succession planning is vital. It ensures businesses are well-positioned to continue growing and performing, minimizing the impact of losing key talent and leaders.

If you are likely to have an issue in your business in the event of losing people, then you must consider your options so that you can find the much-needed solutions.  The future of your business may be dependent on what you decide needs doing.

Sourcing businesses

Is it time to consider:

• expansion;
• acquiring a technology or a trade or service that you want to bring in-house;
• creating or expanding the income stream to support a start-up or to expand your existing business;
• merging with or acquiring another business;
• perhaps you might look at “bolting-on a complimentary business”;
• even empire building;
• these can allow you to become the big fish.

The reasons for acquiring businesses can be many and varied, but to do this you need to consider all sorts of matters that we describe as Due Diligence – you will need to look at all matters relating to your existing business as well as the business you seek.  Finding the fit; the abilities to work together; all the many and varied reasons that you will be required to consider to make what you want to fit in with what you have.

Educating buyers to purchase profitable established business

Buyers can be educated so that they can understand the whys and wherefores of a business.  Education of buyers is something to be considered by all business owners.  It can be as simple as you taking on a “promising” employer who can see what it is that you have, yet at the same time appreciate that if encouraged to do so, that person could easily be trained to operate your business – working someone through the ranks so that they attain managership, you will always need leadership and mentoring successors is a great way forward, yet at the same time be encouraged to be entrepreneurial is a great one to secure a potentially good buyer.  Your skills and encouragement put together in a mix that generates your buyer has to be a way forward for you.  Getting the person you seek might always be inside your building.  If they aren’t, then with time you can approach this matter in an orchestrated manner.

Showing your potential buyer how to buy using OPM (Other People’s Money)

Wow! I guess this caught your attention.  We presume you know how this works especially if you are a property investor.  Quite simply funding can be provided by a raft of funding sources including the business itself being able to provide the capital to acquire a business – if you know how to purchase businesses using this methodology, you will realise that you have the ability to use your assets to fund the acquisition so that the deal pays for itself.

Want to know more?  Investor Properties Business Acquisitions Division can assist you with any of the above options.  If you are committed to developing your opportunity further, you really need to consider your options.  We are one of a few advisors in New Zealand that can assist you with all or any of the above.  It is important therefore that you contact us at an early date so that we can start work with you to get your plan underway!

Special Offer to SME  valid until 9 November 2018 (Conditions apply)

A Letter of Engagement will be presented to you prior to undertaking the procedure detailing what we will do for you including our timetable.

We will prepare a comprehensive business plan relating to your business.  This will be prepared in accordance with the Letter of Engagement. Our report will be written following a comprehensive review being undertaken of your business.  We approach our task with a plan that incorporates the use of checklists,  acquired knowledge, logic and common sense where required; we will involve you in our discussions on associated matters before preparing for you a comprehensive written report to assist your selling preparation process.

Our fee will for the promotion period is:

• A special “one-off” fee of $6,000.00 (normally $8,000) plus GST;
• You will pay 50% of the fee with your order, with the balance payable 7 days after receiving our report.
• All other charges will be payable weekly – these will include:
  • Car mileage at the rate of 73 cents/km + GST.  Will apply to all driveable locations outside of the Tauranga City boundary (within Tauranga City there will be no mileage charge);
  • Travel and other expenses (if appropriate) will be quoted to you at our cost in advance of the expenditure being incurred and paid for in advance by you.