For many of us the New Year is a new start, a time when we set ourselves personal and business goals. Quarter 1 is one of the best times of year to sell your business, historically the New Year is a busy period in the business-sale-industry and sees an increase in potential buyers and enquiries.
Lots of us fail to keep our New Years resolutions but where selling a business is concerned, failing to keep those resolutions could mean an abundance of lost opportunity.
Usually, Christmas is a busy time of year and will put your business in a good position to prepare for your sale in the New Year. Even if you are not quite ready to sell, now is the time to get prepared and take advantage of the positive attitude of the new year. Planning and being prepared will lead to a better sale price. On average a small business could take 6-12 months to sell, however during the pandemic we could be looking at longer, so without any time to waste take the first step and explore your options, get a valuation, start organising your financials and prepare your exit.
Whilst we are in the third national lockdown, now is a good time to get your business organised and sale-ready. Here are a few things to look at:
- Get your 2020 financials in order
Business buyers will be looking for a business that performs well financially and had verifiable documentation. Create a list of inventories and equipment that you want to sell with the business, including any intangible assets.
- Assess how Covid-19 has affected your business
It is crucial that business owners can demonstrate to prospective buyers the underlying strength of their business before, during and after COVID-19. Thoroughly quantify the historical impact of your business using a financial forecast, which shows a complete transparency and reassurance to the potential buyer so they can properly value your business.
- Review your commercial property leases
Reviewing with the landlord to see if a new lease can be renegotiated of reassigned to a new owner, many landlords will still want the new tenet to meet certain requirements before they approve the lease. Taking these steps will make the business more attractive to the potential buyer.
So if you are looking to sell your business in 2021/2022 now is the best time to start talking about and planning your exit. Contact our BuyMySalon team here