CATEGORY 108 AUSTRALASIAN DENTIST When listing your business for sale, the primary focus often lies in finding the right buyer. This approach is entirely logical. However, it’s equally crucial to prepare for the moment a suitable buyer is found. Almost every buyer, along with their advisors – solicitors and accountants – will conduct a due diligence process, asking similar questions to scrutinise your business thoroughly. Preparing for this process well in advance can save time and money, expedite the transaction, and demonstrate transparency to the buyer, thereby instilling confidence. Deals can fall through due to the lengthy due diligence process. Both buyer and seller can experience deal fatigue, becoming frustrated with the volume of required details. Legal and accounting costs can also escalate significantly due to the extensive back-and-forth communications. So, why not prepare everything in advance before a buyer is found? Preparing all necessary documents and information ahead of time ensures a smooth, efficient, and transparent sale process. This proactive approach not only facilitates a quicker sale but also enhances buyer confidence, potentially increasing the value and attractiveness of your business. Being ‘Transaction Ready’ could give you a strategic advantage in the business sale process. Preparing thoroughly, minimises delays, and maximise the success of your transaction. Here are some of the reasons why this ‘measure twice – cut once’ approach will help you get to the finish line quicker and get a better overall outcome: Finance ready The majority of business sale transactions hinge on the buyer securing financing to complete the purchase. Finance brokers and lenders must thoroughly assess the transaction’s validity before approving the necessary funds. The way a business is presented to a lender can significantly impact whether a loan is approved, rejected, or renegotiated. By presenting your business in a compelling and easily understandable manner, you can facilitate and expedite the financing process. Lawyer ready It is common for a buyer’s lawyer to lack experience in your specific sector. Often, they manage transactions across various industries, necessitating an understanding of the nuances in your field. By compiling all required information into a coherent suite of documents, you can provide the buyer’s lawyer with the necessary knowledge, thereby expediting the transaction from a legal standpoint, and preventing the alternative of receiving a frustratingly long list of requested documents that may often be entirely irrelevant to your sector. COLUMNISTS Are you transaction ready? By Carl Burroughs and Joanna Oakey WWW.CHLOROFLUOR.COM.AU AUSTRALIAN FOR STRONG, HEALTHY TEETH & GUMS #SUPPORTAUSTRALIAN Carl Burroughs
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