So, you’ve decided that the time is right to sell your business. Your thoughts may well be shifting to ideas of how to go about it. Do you need to start reaching out to potential buyers? Should you be nailing up ‘for sale’ signs on the front of your premises?

In truth, you needn’t worry about any of these things until your business is actually ready to sell.

Just because you’ve decided it’s time to let go of your company, it doesn’t mean that it’s the best time to sell it. Usually, there are a number of things that can be done first to enhance the value of the business and make it more attractive to buyers.

We asked Rick Smith, managing director of business exit specialists, Forbes Burton, for his top tips on how to make sure your business appeals to investors. By considering some of the following steps before putting your business up for sale, you stand the best chance of not only finding a buyer, but also receiving the best price possible.

Does your business function without you?

One of the first things you should consider is whether the business is actually viable without you. If a talent agent leaves their company, for example, will the business survive without the contacts and skills they took with them?

You’ll need to ask yourself if anybody else in the business would be able to instantly step into your shoes and perform to the same standard should you leave tomorrow. If the answer is no, you’ll need to work on a succession plan that sees you train up a member of staff. If you don’t have any staff to hand over to, however, then you probably don’t have a sellable business.

Are your financial records in order?

You may know that your business is healthy and profitable, but if your financial documents are messy and difficult to navigate, any potential buyers won’t.

Disorganised financial records make a very bad impression that can mar the rest of your business. The goal of almost every business is to make a profit, so if something as essential as financial records aren’t in order, questions can rightly be asked about how the rest of the business is run.

Messy documents that make it hard to determine a company’s financial state can even lead to suspicions of something being hidden. Trust is a key component of any deal, let alone one as expensive as a business acquisition. As such, any hint of information being concealed will cause interested parties to quickly look elsewhere.

Ensure your company isn’t overexposed

Does the majority of your work come from one client? If so, your business is at serious risk if that customer decides to go elsewhere.

While lucrative contracts can add great value to your business, they can’t be relied on to last forever. Without an adequate amount of other work coming from multiple clients, an unrenewed contract can have devastating consequences.

This applies to suppliers too. If your business is dependent on one supplier’s products, it has nowhere to go if they decide to hike the prices up. Interested investors will be looking at how resilient your business is to future risks. If you can lessen your exposure, then you stand a much better chance of securing a buyer.

Apply a fresh coat of paint

It sounds inconsequential, but first impressions count for a lot. If your premises are looking tired and neglected, it can portray an image of an owner cutting corners. When you’re trying to paint your business in the best light, this assumption is far from ideal.

There’s no need to rip everything up and go for a full-on renovation though. A simple touch of paint and replacing of worn carpets can work wonders. Any small repairs that have been waiting to be done should be sorted too.

New chairs and desks can be had for relatively inexpensive prices too. While any investors are chiefly interested in the financial details of companies, sellers underestimate the value of a well-presented premises at their peril.

Start building a relationship with your rivals

It’s a good idea to get on speaking terms with the owners of similar businesses in your area or industry. This is because your business will be most valuable to those who want it out of their way.

If you can provide a competitor with an extensive client base and a foothold in a different region, then your business becomes even more attractive to rivals.

Be careful if you’re hoping to keep your plans to sell confidential though. An unscrupulous competitor may not think twice about causing you problems by leaking the news early. This can create issues with staff and clients.

Are your staff settled?

Workforces are included in most business acquisitions, so any interested parties will be keen to see what they’re potentially taking on.

If you employ skilled staff, buyers may appreciate the fact that they don’t have to hunt for appropriately trained employees. If you have any workers that you consider especially important to the business, it may even be worth arranging a meeting with them to try and secure their future service.

Make sure that any issues among the staff or between the company and the workforce are resolved before going to sale. Investors will find potential legal cases an instant red flag.

Speak to a specialist business sales team

There are myriad legal and tax implications that are triggered when an owner starts to sell their business. If you don’t have the experience of completing a business sale recently, then it’s strongly advised that you enlist the help of a team of specialists that deal with such things on a regular basis.

Forbes Burton’s business sales team have helped countless owners to exit their businesses successfully. They can guide you through the whole process to ensure that not only can your business command the best price possible, but also that it’s put in front of thousands of genuinely interested buyers.

Visit the Forbes Burton site to receive a free business valuation, or get in touch for no-obligation advice on the best way forward for you.