Practical accounting and advisory support from a team with firsthand experience in business sales
Selling a business is one of the most significant financial events a business owner will go through. The businesses that achieve the best outcomes are almost always the ones that started preparing well in advance, not weeks before going to market, but often a year or more.
At Middleton Holland, our Director Darren Knight has significant personal experience buying and selling businesses, as well as working alongside clients through the sale process. We understand what buyers and their advisors look for, and what can unnecessarily undermine a sale if it has not been addressed.
For a confidential chat please feel free to contact us.
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At M&H we understand first hand what being in business is all about.
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What good preparation looks like
Well-prepared financials
Buyers and their advisors will scrutinise your financial records. At a minimum, you want two to three years of clearly prepared financial statements that show the profitability and performance of the business in a straightforward way. If there are unusual items in your accounts that need explanation, these should be addressed and documented before you go to market.
The right structure
The legal and ownership structure of your business affects how a sale is structured and can have tax implications for both buyer and seller. Getting structure advice before you begin discussions with buyers is important. Your accountant and your solicitor should both be involved in this conversation early.
Reducing owner dependency
If your business would struggle without you personally, that is a risk factor that buyers will factor into the price. In the period leading up to a sale, building systems and demonstrating that the business can operate independently strengthen your position considerably.
Realistic timing
Timing a sale to coincide with a strong period of financial performance makes sense where possible. We can help you think through when the numbers are most likely to support the outcome you are looking for.
Frequently asked questions
How far in advance should I start preparing to sell my business?
As a general guide, starting at least 12 months before you want to go to market gives you time to address any financial or structural issues that might affect the sale price or process. For more complex businesses, two years is not unreasonable.
Do I need a business valuation before I sell?
You are not legally required to have one, but it puts you in a much stronger negotiating position and helps ensure you do not underprice what you have built. See our Valuations page for more detail.
What is the difference between an asset sale and a share sale?
In an asset sale, the buyer purchases specific assets of the business rather than the company itself. In a share sale, the buyer acquires the shares in the company, taking on its history and obligations. The right structure depends on your circumstances and has different tax implications for both parties. This is a conversation to have with your accountant and solicitor early in the process.
Can you help us find a buyer?
Our role is on the accounting and advisory side of the transaction rather than business brokering. However, we can point you in the right direction and work alongside whichever professionals are involved in the sale.
Start the conversation
The right preparation can make a substantial difference to the outcome of a business sale. We provide practical advice to help business owners navigate the process with confidence.
Call us on (09) 415 2334 for a confidential discussion.