When It's Time To Cash In

You’ve worked hard to establish a successful venture and now you want to sell. But be patient: it takes time and careful planning to achieve the best result

- Anthony O' Brien

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