Selling a business is a complex and often daunting task for those who have never sold a business before, which is why it makes sense to use a professional brokerage like Hallmark to transact your sale. Our goal throughout is to achieve a successful sale with a win-win situation for all parties involved.
Step 1. Knowing What Your Business is Worth
We are often asked about business valuations and the ‘secret formula’. Whilst some industries have a ‘rule of thumb’ business valuation technique, there are many variables which need to be taken into account.
To establish the current value of your business you will need to supply:
- 2 years (minimum) accountant’s figures
- Interim Financials (dependent on time of year)
- Owner’s / Director’s roles
- Plant & Equipment and Stock value
- Lease Arrangements
- Suppliers/distributors/manufacturing payment arrangements.
- Relevant market information
- Trademark details
We can prepare a written market business valuation report upon request, suitable for exit plans, partnership buy outs, family law matters or growth strategies. Please contact us for information on our fees for business valuations.
If you would like a general business appraisal with a view towards creating an exit strategy or are thinking of selling your business, we do welcome your enquiry and can give you a consultation on what your business may be worth.
Step 2. Preparing A Summary of the Following
Business valuations need to take into account past performance as well as future sustainability.
To enable us to do this we will need you to give us a good insight into your business operation, and we suggest preparing the following:
- Past growth patterns
- Identify current staff capable of promotion
- The current owner’s role(s)
- Future opportunities
- Licences or permit requirements
- Main competitors
- As much additional quantitative information as possible (e.g. monthly sales data, receivables and payables, reconciliations, etc)
