Following on from last week’s article, we thought it only right to cover the other side of the story, and write a post about selling a business.
As a seller you obviously wish to package your business in a manner that presents it to best advantage, consistent with telling the truth. It is a little like selling a house – always make sure the premises are attractively presented, encourage people to call at times when you know the business will be busy, and be prepared to provide the buyer with the type of information that will be required, such as:
- Copies of financial statements
- A list of staff
- A list of major customers
- A list of major suppliers
- A copy of the lease
- Copies of property titles
- A schedule of plant and equipment
- An estimate of likely value of stock in trade
It is well to remember that the buyer may ask your accountant to provide him or her with financial information about your business
At Johnston Associates South we have a strict rule never to release client financial statements to outside parties without the specific consent of the client concerned. You should advise your accountant if you wish him or her to release information to prospective buyers.
Packaging Your Business For Sale
Business owners are sometimes more concerned with tax savings than with reported earnings and financial position – until they are refinancing, going public or structuring their business for sale. Their accounting practices historically may have focused solely on minimising tax. If you’re looking to sell your business, feel free to contact us and we can review your accounts to ensure they are fully prepared, accurate and correct before packaging your business for sale.
If you would like to read more about buying a business, check out last week’s article.