Firstly assess your motivation to sell:
You have clearly identified the reasons why you are selling, and not just because, if you get a good price for the business, you will sell it. It is a tough market out there, and selling isn’t an easy walk in the park, so have a plan, and a dream of what you will do after you have sold.
Books are in Order:
If you haven’t had updated financial figures from your accountant, then you should do so. However, ask your listing agent, as this is dependent on what time it is in the financial year. Buyers and their accountants will want to see up-to-date figures – financial accounts, daybooks, banking and GST returns. Being ready with this information keeps the sale moving along smoothly.
Price it right:
If you price your business too high, serious buyers won’t even consider it. Price it too low and you are throwing away hard earned money. In order to do a fair market appraisal, a business broker will need from you -
- 2-3 years of profit and loss accounts.
- A value for the assets (fixtures, fittings, equipment, furniture)
- Average value of stock
- Details of your lease (what time is remaining on the current lease; next rent review etc). Buyers will want to view your lease so have that document ready.
List down your suppliers, client database, systems that you use; and any day-to-day information relevant to running the clinic.
How profitable is the business:
One of the most relevant things to a buyer, is what income the business is providing to the owner. In most cases, this is the ‘working in the clinic’ owner. You want to show healthy turnover and profit, in order to achieve a good price.
The net surplus or net profit, is what money is left over after all expenses and running costs are taken out – usually the owner’s wage. If the net surplus is providing less than a buyer would earn by working as an employee, then this isn’t a favourable situation for them. When you are wanting to sell, avoid unnecessary spending in your clinic, as this will increase your expenses and reduce your cash surplus.
First Impressions Count:
The golden rule to selling anything. A first impression on entering your clinic will have a big impact on a buyer. Your business should look professional, organised, clean and tidy. By getting paintwork touched up, some new towels, bed linen; maybe a dramatic curtain, will make a buyer think “well this is nicely presented, and I won’t have to spend a lot of money instantly”. It may also create an emotional buy from the purchaser. Check all equipment is in working order, as assets are important part of the purchase in a clinic.
Getting the right person to sell your Clinic:
A specialist broker that handles business sales in the beauty therapy industry is the right person for you. They understand the industry well, as some of them have been beauty therapists themselves for many years. Also, a specialist broker will have a portfolio of buyers who have enquired in this industry.
Invest in marketing:
Remember, “You can’t sell a secret”. Website marketing is where the majority of enquiries come from these days. A business broker specializing in Beauty Clinic Sales will get maximum exposure for you as their standard marketing is on 7 different ‘businesses for sale’ websites. This way you will get enquiries off every single site.
Don’t take your foot off the throttle:
Keep working the business while selling is crucial, as a buyer will quickly see that turnover is decreasing if you don’t. Working 40 hours a week on, and in your clinic doesn’t allow the time for dealing with buyers and negotiating a good price for you. Using a professional broker, frees you to do what you do best – running your business.
Preparing in advance for the sale of your business by maximising its efficiency, earning potential, structure and presentation can lead to this success story ……
- ready for sale
- suitable buyer
- offer presented and negotiations
- due diligence (verifying all information provided is correct)
- Settlement and handover
- “FREE TO FOLLOW YOUR NEXT DREAMS AND ADVENTURES”
|Article supplied by Lisa Lloyd.
If you are thinking of selling your business, please contact Lisa today at:
Freephone: 0800 225 999
Mobile: 027 685 4556
Bay Business Brokers Limited – Licensed REAA08