When is the right time to contact a Broker?

Many people who are thinking of selling their businesses right now are perhaps thinking of getting their accountant to complete their 19/20 accounts and then contacting a Broker in July/August.

Wrong, wrong wrong!

June is the perfect time to contact your Broker and this is why:-

1. You should have enough information already for a Broker to advise you if your business is saleable and for a price that will meet your goals. Another month of trading activity will not add anything material to your consideration.
2. Most business owners work with their accountants each year to minimise their profit to optimise the tax that they pay. However if you are selling your business, your objective is the exact opposite as the biggest determinant in the price a Buyer is willing to pay is your profit. The bigger the profit (as recorded in your official accounts) the more a Buyer will pay. By meeting with a Broker BEFORE your accounts are finalised you can ensure they present your business as best as possible to maximise your sale price.
3. Once you decide you want to sell, there is a lot of work that you need to do to assist your Broker to prepare a Business Profile to market your business to Buyers.Why wait until your accountant has done his work, when you can work on this information at the same time! The result is that you get your business to market in July rather than August or even September. And in the second half of the year, the more time you have to engage with buyers before the Christmas period the quicker you will sell.