Preparing for Resales
When it comes to selling your business there is a lot you can do in advance to ensure an easier and quicker sale. Failure to prepare can affect your ability to sell, it can affect the price you achieve and can also affect the ability of the potential buyer to raise the finance they may need. Our Re-Sales service ensures this does not happen. It begins by us undertaking an independent financial and non-financial Business Health Check to ensure that when a purchaser undertakes their due diligence you will have reduced the risk of them finding any major problems.
Using a unique scoring system, the results are measured against a set standard to provide an overall measure of the ‘Health’ of the business and the current ‘Saleability Factor’. This is the “likely attractiveness level” to a potential buyer. The Saleability Factor is normally considered to be High, if the business is shown to be in ‘Good Health’, Moderate if it is in ‘Reasonable Health’, Low if it is in ‘Poor Health’ or Very Low to Nil if it is in ‘Critical Health’.
Learn more about how we can help you maximise the sale value of your franchise business
Clients receive a full SWOT analysis (covering Strengths, Weaknesses, Opportunities and Threats) and a prioritised Action Plan to enable you to capitalise on the Strengths and Opportunities within your sales prospectus and eliminate or mitigate any Weaknesses and Threats, so as to improve both the likely sales value and the Saleability Factor.
The process will help you to ensure that you have all the information that the prospective purchaser will need and hopefully enable you to demonstrate positive trends through the maintenance of comprehensive data. We can legitimately redraw your accounts (excluding historical costs which were personal to you) to show what could have been achieved and also prepare a financial forecast in order to show prospective buyers the potential of the business which in turn should help to maximise your sale value.
The flip-side of this is that we will be able to assist the ‘incoming franchisee’ by helping them arrange the finance they need to buy your business. Using the financial information produced, a separate team at Franchise Finance can incorporate this information into a finance proposal and use this to raise the necessary finance for the buyer to purchase and trade your business.