Face it openly
It's my baby. Why
would I walk away?
But I don’t
want to sell
Whenever you talk to
entrepreneurs about exit
strategies, they almost
The only way
You may never want to
exit your company, but
making it ready to sell
will guarantee a good
Top 5 for a healthy
• Invest in your web side
• Invest in your content
• Invest in marketing automation and
• Create a real-time dashboard of your
• Develop a formal sales process
• Are you ready to sell your business?
• Is your business ready to be sold?
These are not the same questions although
the answers must be consistent.
Are you prepared to let go of your business -
to get out now?
• Do you have a history of consistent sales and proﬁt
• Do you have at least 2 years of clean ﬁnancials?
• Do you have a foundation of robust systems,
processes and structure and are they fully
• Do you have projections showing increasing value
for the buyer long after you exit? Do you have
projections showing increasing value for the buyer
long after you exit?
Is you business ready to be sold
• Are you ready to make the necessary changes to
make the business “buyer attractive”?
• Do you know what makes your business “buyer
• Do you know what makes your business successful
in your market?
• Are all your stakeholders prepared for the
Many prepare themselves for their exit and
forget to prepare the business
can make for a very tough transition for
the business, clients, team, and suppliers.
Challenges are totally avoidable
- prepare the business for the exit transaction
- prepare yourself for your exit transition
PLAN AND PREPARE – and DO
You need quickly decide on two things:
1. How much do you want to sell for?
2. When do you want to sell?
able to do what you want next in your
As soon as possible?
But will you get the ﬁgure you are seeking?
To Maximize your exit
• Quantify your business value
• Eliminate worthless inventory and
• Tidy up ﬁnancial records
Best to Maximize
• Audit your books
• Install and improve Systems
• Prepare your management team
Make it attractive
• Plant and equipment
• Business premises
sell all obsolete or slow moving stock items
look at your premises with the eyes of a potential buyer.
Clean up, maintain, and paint the premises where necessary.
sell any redundant or obsolete plant and equipment,
machinery, spare parts, and scrap that is no longer required.
• Commercial premises leases
Ask your staff to take their leave and other entitlements.
Retaining key employees after transfer to the new owner.
Review business premises leases and ensure the lease
does not expire or require renegotiation during the time
when you plan to sell the business.
• Valuing your business
• Return on investment (ROI)
• Asset value-going concern
ROI = Net Annual Proﬁt x 100/price
Price = Net Annual Proﬁt x 100/ROI
Right price - are you
• Market value
• Cost of creating the business from
• Obtaining professional advice
- Get more qualiﬁed buyers
- Finer points
- Emotions : Having a professional working will
eliminate the stress and emotion
You need to decide whether to sell your business
yourself or to engage a business broker to do it for you.
Put your business on the market
Get a business broker involved
• Qualifying buyers
• Finalizing the sale
Get a signed Conﬁdentiality Agreement before supplying private
ﬁnancial records to any potential buyer
negotiation terms: what do you want?
anticipate compromise: what will you compromise on?
your walk away position: when will you stop negotiating and walk away?
to minimize the occurrence of any problems and to ensure the sale is
valid involve a professional business broker
What about Franchise
the desire to move on to
Before Making any
... draw up a list of all the problems you are
experiencing in the business
sit down with your franchisor and go over
them one by one
... speak to other franchisees
1. Review franchise agreement to be sure
you are allowed to sell your business &
transfer the agreement to a new owner
2. Consult with the franchisor beforehand
Company will likely want to approve
the new owner
Most franchisors have a ﬁrst right of refusal
What to do?
Consult franchisor: if it doesn’t wants to buy,
get proof of this waiver in writing
• read over the section in your franchise
agreement on post-term covenants
• make sure you know the rights and
duties you have
Be careful again
signiﬁcant role in any business plan
you may have down the road
recommended that you bring your
business broker or lawyer in to help you
Inquire whether or not there are other
franchisees in the system who may want to
take over your business.
This could prove to be the
fastest way to an exit.
To Exit your business
BCI Business Brokers
Tony Arena (Managing Director)
3/1 Alexander Street, Crows Nest, NSW, 2065
Phone: +61 2 9439 3399
Mobile: +61 411888148
We can help you