Best Way to Sell Your Business in 2023

Considering selling your business in 2023? Well, you’ve taken the first step towards an exciting chapter in your life by reading this article. Selling a business can be a complex and emotional process, but with the right approach, it can also be a rewarding and profitable experience. As we move into 2023, many business owners may be considering selling their businesses for a variety of reasons, whether it’s retirement, a desire to pursue other ventures or changing market conditions.

According to REINZ back in 2021, over 2506 businesses were sold in New Zealand industries, such as retail, hospitality, manufacturing, and services. Entrepreneurs choose to sell their businesses for a wide range of reasons. Economic, technological, or market changes may make it difficult for a business to keep up, and a decision to sell may be the best course of action. Regardless of the reason for the sale, careful planning and preparation are key to ensuring a successful business sale.

In this article, we will explore the best ways to sell your business in 2023, and how you can achieve a successful and profitable sale that sets you up for a bright future.

Plan ahead & prepare your business for sale

Before you put your business up on the market, it's essential to take the time and get your ducks in a row. Preparing your business for sale can take months or even years, so if you’ve had thoughts on selling, then it’s best to get started with these steps. The first step is to take a good look at your business and where it currently stands and assess what needs to be improved or changed in order to make it more attractive to potential buyers. The planning stage can include steps like reviewing financial statements, identifying assets, identifying any issues that may impact your business sale, and making necessary adjustments to your business to increase its value.

The next thing is to review your financial records. Many prospective buyers would be interested in seeing the financial performance of your business therefore it's important to ensure records are up-to-date, accurate, and organised. Working with your accountant or a financial advisor to prepare financial projections can help you understand how potential buyers will evaluate your business.

Identifying the gaps in your business and making actionable changes can give you a huge advantage. There’s no time like the present so if there are necessary changes you can make to improve your business, then get it done now, and it may just help increase your business value. Simply updating your technology system, improving your marketing strategy or renovating and adding upgrades to your business can help your business appear more attractive to potential buyers and increase the sale price.

Hire a business broker

One of the best ways to sell your business is to work with a business broker. A business broker can provide valuable expertise and guidance throughout the sales process, helping you to navigate complex negotiations and ensure that you receive a fair price for your business.

When it comes to choosing a business broker, it’s important to look for someone with a strong track record and experience within your business industry. A good business broker will have a wide network of potential buyers and can reach out to their contacts in the industry who may be interested in buying your business.

A business broker is like a skilled navigator who knows the in’s and out’s of a business sales process and can guide you through with ease. They have the experience and knowledge to help you navigate complex negotiations, identify potential issues that may impact the sale, and market your business effectively to potential buyers.

In addition to providing guidance and expertise, a business broker can help you achieve a successful and profitable sale that sets you up for a bright future. They can help you to prepare your business for sale, identify potential issues, and make necessary improvements to increase its value. They can also help you to market your business effectively and attract the right buyers, ensuring that you receive a fair price for your business and achieve a successful sale.

Develop a strong online presence

After assessing your business and determining its value, the next step towards a successful sale is to market your business effectively. Again, a business broker can help with this stage but if you were to do this on your own, this would involve creating a comprehensive marketing plan that highlights the unique strengths of your business and targets the right buyers.

One of the most effective ways to market your business is to create a strong online presence. If you don’t already have a business website, be sure you have one set up and include your products and services, an about section on your business, and testimonials from customers. Leverage social media platforms, such as LinkedIn and Facebook, to reach a wider audience and share information about your business. A business broker can help you with creating and executing your marketing plan, as they have experience in identifying potential buyers and tailoring marketing efforts to reach them.

Be prepared for negotiations

When it comes to selling your business, negotiations will be an inevitable part of the process. Being prepared for negotiations is crucial to achieving a successful sale and getting the best possible price for your business. Preparing yourself and your business for negotiation beforehand can help maximise your chances of a successful sale. Here are our tips for you to consider before you enter into the negotiation stage:

• Set clear objectives: have a clear idea of what you want to achieve from the sale of your business. This includes setting a target price, identifying your minimum acceptable price, and determining what other terms and conditions are important to you.

• Know your strengths and weaknesses: Understand your business’s strengths and weaknesses from the financials, your competitive advantage, and any potential liabilities or risks associated with your business.

• Expect objections: Be prepared for potential objections from buyers and have a response ready. This includes being able to address concerns about the business's financials, operations, or industry trends.

• Be open to compromise: Be prepared to compromise on some terms in order to achieve your overall objectives such as being open to alternative deal structures or payment options.

• Work with professionals: Business brokers can also handle the negotiations on your behalf and have your best interest at heart. They can gather the information above and provide expert advice on deal terms and conditions you should be aware of.

If you're considering selling your business this year, don't go it alone. At Kakapo Business, our team of trusted business brokers located in Auckland are here to help you every step of the way. Our brokers understand that every client's journey is unique, and we're committed to meeting your specific goals with professionalism and care. Don't wait any longer to start your journey towards a successful business sale. Contact Kakapo Business and get started with selling your business this year.