Things To Do Before Going To Market

Selling your business? Here’s 4 things to consider before going to market

You have put years of hard work, time and money into building a business and when the time comes to sell, you want to ensure you maximise the business’ sale price. Many business owners don’t consider how they should prepare their business for sale before they actually start the sale process. Inadequate preparation can undo years of hard work as many business owners only get one chance to sell their business. In this article we outline 4 things you should consider when preparing to sell your business. 

Engage the right advisors

It is important to engage the right advisors from the outset. A good broker, accountant and lawyer will help you plan, organise and execute the sale from pre-sale through to completion and help you achieve maximum value. It is important to seek out advisors who have experience running business transactions and who know your industry.

Maintain and update your financials and records

When you first decide you want to sell your business, it is important to ensure your financial and other business records are up to date and in order. When buyers begin their due diligence process, the first thing they will look at is your financial records as this will form the core of their opinion of value. If a buyer becomes concerned about the quality or extent of records then they are more likely to offer a lower price, demand unfavourable terms or walk away from the sale. 

Be flexible with Payment and Transactional Terms

Seller flexibility with payment and transactional terms can often lead to a higher sale price. Two options to consider as a seller are vendor finance or agreeing to an earn out arrangement. Vendor finance is when a seller agrees to lend the buyer money to help pay for the business in a manner similar to a loan, and this form of finance is common in sale of business transactions. In an earn out arrangement, the buyer provides an initial sum payment and a right to further payments for a specified period after the sale, that are calculated based on the performance of the business during that time. 

Stay Focused – Business as Usual

It’s important that your business continues to operate as normal. When owners begin the sale process, too often they will become consumed by the process and the business will suffer as a result. Staff cannot be distracted, and information should only be shared with key staff and stakeholders when absolutely necessary. The cost of distraction can have a huge impact on the final sale price of the business or even its saleability. 

Find Out More

Groves & Partners are experienced M&A advisors who will be able to assist you with the sale or purchase of businesses with an enterprise value of $1 to $50 million. For a free confidential consultation, please call +61 2 7208 7970 or email

Written by Stephen Groves