 |
| |
 |
| |
 |
| |
 |
| |
 |
| |
 |
Copyright 2006 Business brokers Kenya | All Rights Reserved Tyc & Associates, Head Office: Nairobi Kenya
Company registrations in Kenya Businesses for sale Business opportunities in Kenya
About us Business partnership consultancy Service to business sellers Service to business buyers
Free incorporation forms Links and resources contact us
About us Business partnership consultancy Service to business sellers Service to business buyers
Free incorporation forms Links and resources contact us
Preparing Your Business for Sale
The Do’s & Don’ts of Selling Your Business
Preparing Your Business for Sale
Business Owners typically contemplate selling their
businesses at different times through their ownership. It
usually happens at the time of "business stress." This
could be anything from employee headaches to
customer problems to real or anticipated downturns or
even health reasons or impending retirement. Or
sometimes you've just had a rough day. It's not a
decision to be made casually, but if, after strong
consideration, the decision to sell is made, certain steps
should be taken.
1. Prepare and analyze the financial statements of the
business.A Buyer will ask for a history of tax returns
and/or financial. It will be most important to be able to
show profits and owner benefits.
2. Be sure to keep your decision to sell confidential.
Employees will be naturally distressed if they are told
too soon. After all, the business may not sell.
3. Seek accounting and legal advice on the tax
ramifications of a sale. It's not what you get. It's what
you get to keep.
4. Take an objective look at your business premises.
Are your offices clean, uncluttered and up-to-date? Do
the facilities need a fresh coat of paint or new carpet?
Potential buyers want to feel comfortable in their work
environment. Now is the time to be aware of the look of
your business.
5. With a serious financial undertaking as this, it is
important to obtain professional assistance. There
are unique rules involved in small and mid-sized
company valuations and sales.
Our goal is to locate the best possible buyer with the
minimum of inconvenience to you, the client, and get
the highest possible price for your exceptional business.
The Do’s & Don’ts of Selling Your Business
In order to ensure that the sale of your business goes
as smoothly as possible, we would like to share with you
some of the do’s and don’ts in selling a business that
we have learned over the years. The sale of your
business will go much more quickly, smoothly and
successfully if you keep these points in mind.
The following list is not in order of importance. In any
given situation, one or more of them can be important.
Do be flexible and keep an open mind. The sale of
a business encompasses many factors. Don’t take an
adamant stand on any one item. Look at the whole
picture. Your best interests are served by working with
us to negotiate a good offer.
Don’t surprise anyone with undisclosed
problems. There is no such thing as a perfect
business. Tell Tyc & Associations up front about any
current or past problems with your business, i.e. Lower
than expected sales or profits, loss of a major customer,
lawsuits, etc. Do not try to minimize them or pretend
they do not exist. This will enable us to explain them in
their best light to a prospective buyer. Almost anything
can be explained satisfactorily to a buyer if they are told
about it early on.
Do continue to operate your business as if it
were not for sale. Since Tyc & Associates only
represents good businesses, we are generally
successful in selling most of our client’s businesses.
However, while we are marketing your business, it is not
the time to “rest on your oars.” You owe it to your
employees, your customers, and most of all to yourself,
to continue to purchase needed equipment and
inventory, seek out new customers, etc.
Do minimize your exposure to a prospective buyer.
Once you have accepted an Offer to Purchase, try to
minimize further contact with the buyer until closing.
You, or one of your employees, may inadvertently say
or do something that “turns the buyer off.” You have
nothing to gain and potentially everything to lose by
being “chummy” with a buyer prior to closing.
Remember, a sale is not completed until it is closed.
Don’t tell your employees the business is for
sale. Most business people are, by nature, honest and
straightforward people. Because of this, frequently they
mistakenly feel they should tell their key employees the
business is for sale. A key employee may look for
another job, or accept an offer he may otherwise have
turned down if he finds out the business is for sale. You
do not want to lose a valuable employee – and neither
does the buyer. After all, he is paying you a good price
for your business because, among other things, you
have key employees in place. The loss of one of these
may jeopardize the sale.
Do try to close the sale as soon as possible.
Frequently sellers who have had their businesses for
many years feel no sense of urgency about the closing
date. They will say something like, “I’v had the
business for 20 years, what’s another few weeks?” The
longer the period between an accepted Offer to
Purchase and the closing, the more chances there are
for things to go wrong.
Do use the services of TYC & ASSOCIATES as
much as possible. We have many years of experience
negotiating the sale of businesses, arranging financing,
transferring distributor agreements, renegotiating
leases, etc. Take maximum advantage of our
experience and expertise. Your time should be spent in
continuing the successful operation of your business,
not in worrying about every little detail of the transaction.
The Do’s & Don’ts of Selling Your Business
Preparing Your Business for Sale
Business Owners typically contemplate selling their
businesses at different times through their ownership. It
usually happens at the time of "business stress." This
could be anything from employee headaches to
customer problems to real or anticipated downturns or
even health reasons or impending retirement. Or
sometimes you've just had a rough day. It's not a
decision to be made casually, but if, after strong
consideration, the decision to sell is made, certain steps
should be taken.
1. Prepare and analyze the financial statements of the
business.A Buyer will ask for a history of tax returns
and/or financial. It will be most important to be able to
show profits and owner benefits.
2. Be sure to keep your decision to sell confidential.
Employees will be naturally distressed if they are told
too soon. After all, the business may not sell.
3. Seek accounting and legal advice on the tax
ramifications of a sale. It's not what you get. It's what
you get to keep.
4. Take an objective look at your business premises.
Are your offices clean, uncluttered and up-to-date? Do
the facilities need a fresh coat of paint or new carpet?
Potential buyers want to feel comfortable in their work
environment. Now is the time to be aware of the look of
your business.
5. With a serious financial undertaking as this, it is
important to obtain professional assistance. There
are unique rules involved in small and mid-sized
company valuations and sales.
Our goal is to locate the best possible buyer with the
minimum of inconvenience to you, the client, and get
the highest possible price for your exceptional business.
The Do’s & Don’ts of Selling Your Business
In order to ensure that the sale of your business goes
as smoothly as possible, we would like to share with you
some of the do’s and don’ts in selling a business that
we have learned over the years. The sale of your
business will go much more quickly, smoothly and
successfully if you keep these points in mind.
The following list is not in order of importance. In any
given situation, one or more of them can be important.
Do be flexible and keep an open mind. The sale of
a business encompasses many factors. Don’t take an
adamant stand on any one item. Look at the whole
picture. Your best interests are served by working with
us to negotiate a good offer.
Don’t surprise anyone with undisclosed
problems. There is no such thing as a perfect
business. Tell Tyc & Associations up front about any
current or past problems with your business, i.e. Lower
than expected sales or profits, loss of a major customer,
lawsuits, etc. Do not try to minimize them or pretend
they do not exist. This will enable us to explain them in
their best light to a prospective buyer. Almost anything
can be explained satisfactorily to a buyer if they are told
about it early on.
Do continue to operate your business as if it
were not for sale. Since Tyc & Associates only
represents good businesses, we are generally
successful in selling most of our client’s businesses.
However, while we are marketing your business, it is not
the time to “rest on your oars.” You owe it to your
employees, your customers, and most of all to yourself,
to continue to purchase needed equipment and
inventory, seek out new customers, etc.
Do minimize your exposure to a prospective buyer.
Once you have accepted an Offer to Purchase, try to
minimize further contact with the buyer until closing.
You, or one of your employees, may inadvertently say
or do something that “turns the buyer off.” You have
nothing to gain and potentially everything to lose by
being “chummy” with a buyer prior to closing.
Remember, a sale is not completed until it is closed.
Don’t tell your employees the business is for
sale. Most business people are, by nature, honest and
straightforward people. Because of this, frequently they
mistakenly feel they should tell their key employees the
business is for sale. A key employee may look for
another job, or accept an offer he may otherwise have
turned down if he finds out the business is for sale. You
do not want to lose a valuable employee – and neither
does the buyer. After all, he is paying you a good price
for your business because, among other things, you
have key employees in place. The loss of one of these
may jeopardize the sale.
Do try to close the sale as soon as possible.
Frequently sellers who have had their businesses for
many years feel no sense of urgency about the closing
date. They will say something like, “I’v had the
business for 20 years, what’s another few weeks?” The
longer the period between an accepted Offer to
Purchase and the closing, the more chances there are
for things to go wrong.
Do use the services of TYC & ASSOCIATES as
much as possible. We have many years of experience
negotiating the sale of businesses, arranging financing,
transferring distributor agreements, renegotiating
leases, etc. Take maximum advantage of our
experience and expertise. Your time should be spent in
continuing the successful operation of your business,
not in worrying about every little detail of the transaction.
Tyc & Associates
offers you the best
M & A consultation
services.
A team with all
relevant
experience,exposure
and ability to
provide a top
notch,business
sales service.
We are just a click
away
info@bizbrokerskeny
.com
offers you the best
M & A consultation
services.
A team with all
relevant
experience,exposure
and ability to
provide a top
notch,business
sales service.
We are just a click
away
info@bizbrokerskeny
.com
Business Brokers Kenya
 | |  | |  | |  | |  | |  | |  |