1. Sell Fastest At The Highest Possible Price
You only get one chance to sell your franchise business; do it properly from start to finish. The longer your business is on the market, the more the price will drop. Trying to sell your business yourself, having the franchisor sell your business for you, or hiring a generalist business broker with low fees can result in an unsold business or receiving a lower selling price than is possible. Finn Franchise Brokers are experts in selling a franchise business.
2. Detailed Information Preparation
Once you make the decision to sell your business, it immediately becomes a product competing against thousands of other businesses for sale. Prepare information about your business performance that can be presented to potential buyers and their banks. The Finn Franchise Brokers Business Profile Document and Due Diligence Package is the foundation to the marketing of your business containing everything necessary for potential buyers, their accountants and banks.
3. Get A Professional Appraisal
A professional appraisal is one of the most important aspects of selling your business. Pricing your business correctly allows banks to lend your buyer the right amount of money. If you have not correctly appraised your business, the bank may not lend your buyer the money needed, and the deal can fall over. Get An Appraisal >
4. Marketing Your Business
The first three months that your business is on the market is crucial. Advertise heavily, but remain conscious of how much you are spending; you don’t want to unnecessarily spend your marketing budget. The Finn Marketing Program is the most comprehensive on the market designed to advertise your business extensively online, in print, to our buyer database and at Finn Seminars.
5. Keep Sales Growing
Just because your business is on the market, does not mean the day-to-day operations stop. You want to handover the best performing business to your new buyer. Ensure that you are spending enough time at your business to guarantee your sales stay constant. Most franchisees don’t have enough time to manage the sale of their business and continue to run the business. Finn Franchise Brokers are involved in every stage of selling your franchise business.
6. Maintain A Relationship With Your Franchisor And Specialist Franchise Broker
Maintaining a positive relationship with your franchisor and specialist franchise broker will make the entire selling process much smoother. Your franchisor and specialist franchise broker will give you advice about selling your business, ensure all specific franchise guidelines are met and have a database of shared knowledge. Ruining these relationships, can drastically decrease the sale price of your business.
7. Tell Your Staff About The Sale
Your staff deserve to know about an ownership change that is going to occur sometime in the near future. Tell your staff just as your marketing commences. It is best to tell your staff face-to-face in a group meeting. Don’t inform your staff by email, and don’t let the news leak out gradually. Your Finn Franchise Broker has experience with many other business sales and can help you to decide when and how to deliver this information.
8. Consider A Silent Listing
A silent listing is ideal if you are in no hurry to sell. It is particularly suited to very high-profit franchisees that may be under management. Your business will not be actively marketed, but will be mentioned to suitable buyers. It may take a while to get your business sold, but that is to be expected with no marketing program in place.
9. Prepare For An Exit Budget
Your exit budget will be about 10-15% of your sale price. This budget includes: setting a marketing budget, paying a lawyer for guidance on contracts, franchise agreements or lease assignments, paying your accountant for advice on tax planning, paying commission to your specialist franchise broker and preparing your business information for presentation to potential buyers.
10. Reaching A Settlement
Once a buyer is found and a price is agreed upon, allow 2-3 months for a complete settlement. Stock-take is done on settlement day, with a separate cheque written for the stock value, at cost. Deals can fall over, but don’t lose your motivation. The right buyer is out there waiting to be found!