Preparing your business for sale: Start early, sell smart.
Selling your business is one of the most significant decisions you’ll make as a business owner. In this episode of Less Than 15, we sit down with Gary Nugent, Managing Partner at DFK Nugent in Melbourne and Chair of DFK Australia New Zealand, to discuss how to prepare your business for sale.
Gary shares why it’s crucial to start planning 3 to 5 years in advance and provides practical advice on how to increase your business’s value before you even think about selling.
If you want to ensure you’re not leaving money on the table, this episode is a must-listen.
Key Takeaways:
Start with the end in mind:
Most business owners leave it too late to start preparing for a sale. Gary recommends starting at least 3 to 5 years in advance to ensure you have enough time to make necessary improvements and position your business for the best possible sale price.
Avoid common pitfalls:
The biggest risk of leaving it too late is that you’ll end up selling your business for less than it’s worth. If you don’t have enough time to lock in key people or fix issues within the business, it may appear less attractive to potential buyers and you could become a “price taker” rather than getting what your business is truly worth.
Focus on key areas for improvement:
Gary highlights the importance of focusing on core areas like brand strength, system documentation, key people, business plans, and client relationships. Think about what makes franchises successful: a strong brand, documented systems, and clear plans.
Create a transferable business:
It’s not about selling you—it’s about selling the business. Make sure you have systems in place that allow the business to run independently of you. This means empowering your team and ensuring your processes are well-documented.
Different avenues to market:
From selling to a competitor to engaging with brokers or attending trade fairs, Gary outlines multiple pathways to selling your business. Each comes with its own risks and benefits, so it’s important to choose the right strategy based on your goals and timeline.
Why you should listen:
If you’re a business owner thinking about selling your business—whether it’s in 3 years or 10 years—this episode provides invaluable advice on how to maximise your business’s value and avoid common pitfalls. Don’t leave this important decision to the last minute. Start planning now to ensure a successful and profitable sale.
Guest information:
Gary Nugent is the Managing Partner of DFK Nugents in Melbourne and the Chair of DFK Australia New Zealand. With extensive experience in advising businesses on mergers, acquisitions, and sales, Gary is a seasoned expert in preparing businesses for sale and ensuring owners get the best value for their hard work.
