If you’re thinking about selling a business, don’t leave things to the last minute. That’s the advice from Simon Winter, principal of Raine & Horne Business Sales, who says savvy business owners typically start planning for a sale two or three years in advance.
Winter, a CPA (certified practising accountant), says it’s amazing how many people decide to sell on a Sunday and ring him on Monday morning. “It’s a recipe for a disaster,” he says. “The really good operators plan their exit before they even buy into a business, looking at how they’ll improve it and what they’ll get if they sell.”
The upshot is that the earlier you start planning for the sale of your business, the better. “If you build that process into your business plan, it becomes a strategy rather than a chance outcome,” says Winter.
Adam Smith, a chartered accountant and director of the professional services firm Aurecon, says whenever he’s approached by a client to help them set up a business, he always asks that they start with the end game in mind. “What is the horizon you are working towards and what is the exit strategy?
“Too many business owners don’t take the time to work out where they are going and what success looks like. Planning a sale is something that is generally years in the making. If you are planning to sell your business, I always advise owners to take the time to look inward and understand what their long-term personal objectives are.”
When to sell
This story is from the May 2021 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2021 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.