Preparing for sale

Get ahead, increase value and save tax

Your preparation checklist should include:

Maximising value – download our Maximising the value of your business guide for more information.
Business structure – ensure your business structure isn't too complicated; does it minimise risk; do you need to consider a demerger before sale.
Financials – ensure you have cash flow and profit forecasts and good recurring income and a solid future pipeline.
Contracts – make sure you don’t rely on informal agreements or old contracts, get them up to date. Things like leases, employee contracts, supplier and customer contracts are all important.
Intellectual property – protect your IP if you have some.
Large projects – continue with large projects that add value.
Costs – look at overheads and costs, but don’t start cutting too much that could ultimately risk longer term growth.
Identify potential buyers – consider making a list of potential buyers early and why they may buy your business.
Professional advisors – consider now who you’ll use. Speak to your accountant and their Corporate Finance team and get them involved now in the preparation stages.

Even if you don't expect to exit your business for several years, preparing your business succession should be a continual, ongoing process.