Audit the business
Even if you do not succeed in selling the business at this point in time, an internal audit can still be a good move. The aim here is to scrutinize and critique every aspect of the business – from how your shop front/website looks to how you report your finances and everything in between. In addition, you are looking to identify opportunities to improve the business, remove redundancies, and streamline processes – finding these opportunities and capitalizing on them will make your company more attractive to buyers.
Shore up your foundations
As part of your internal business audit, you should also look at contracts. This includes property leases, supplier agreements, and employment terms – what you want to achieve here is a strengthening of the overall foundations of the company. If your business occupies an important piece of real estate and the contract is coming to an end, or you rely heavily on two or three suppliers who have agreements expiring soon, then your potential buyer will be reluctant to purchase (and will definitely offer less than you want).
Renew your contracts in advance of any buy-side due diligence, and the company will be much better positioned.
Plan for the future
Another tip that will benefit you even if you retain the business – plan for the future. Build a two, three, and five-year business plan for the company, emphasizing growth and financial forecasting, and both you and your potential buyer will be able to clearly see the path forward. This will be attractive to buyers and can add value.
Correct mistakes
If you have any outstanding legal disputes, then they need to be resolved. Very few buyers will want to take on the responsibility for legal issues that arose when the business was under your stewardship, and if they are prepared to, they will do so for a discounted price. This could include employment disputes, contract issues, or tax problems: whatever the cause of the problem, make sure that you are on top of
