What I am selling?
When vendors are ready to sell their business, they must ask themselves what they are selling and what image they want to project to potential purchasers.
Vendors must have extensive knowledge of the profile of their business along with its strengths and weaknesses. The following few questions can be of assistance to vendors:
- What property am I selling? Is it in good condition? Does it need to be improved prior to the sale? Is my inventory obsolete?
- Are my sales increasing? Are there steps I could take to ensure they continue to improve? Is my company viable and profitable in the medium and long term?
- What is the profile of my customers? Can I line up some new customers?
- What are my busiest periods?
- Does the business have future prospects? What are some new potential markets?
- As the vendor, what does the future hold for me? Do I retain minority interest in the business? Do I get financially involved in the sale?
- Who is my competition? Does the business have any competitive advantages?
If the vendor really knows the profile of his business and puts it all in writing, they will be able to take the necessary corrective action, attract potential purchasers and facilitate the sale or handover of their business.
For the purchaser, it will be easier for them to see exactly what they are buying in terms of fixed assets, permits, any specific regulations to be followed and any threats or opportunities in this particular market.