Are you thinking about putting your franchise on the market? Begin by asking yourself some of these key questions.
Why Do You Want to Sell?
A potential purchaser of your franchise will be curious about why you are selling – be honest about your reasons. There are many reasons for sales; your franchise may have been a short-term plan, to start a new business venture or to begin retirement. It might be the case that the sale is not planned – sudden illness or change in circumstances may force a quick sale.
Additionally, it could be the case that the business is not the right fit for you; therefore, it is not performing as well as it could be. Whatever the situation may be, you need to have a realistic plan that you can present to a prospective buyer. If a buyer cannot see the potential – they will not invest.
What Are the Variables of The Sale?
Ensure that you understand what you are selling, as well as how much you want to sell for. Begin by putting together a list of assets connected to your business that will be included in the sale. You should also consider whether your business will be sold as an Asset Sale or a Share Sale. Value the assets that you have and make sure everything is in order before you enter the market.
If you are unsure about how much your business should sell for – enlisting the help of a broker is vital. We will help you to value your franchise; we analyse current market trends in order to give you a realistic price for your business.
Finding the Right Time and The Right Buyer
When deciding on the best time to sell, consider whether you need to complete the sale sooner rather than later. A sale can take up to 18 months to complete due to a variety of factors, therefore, where possible it is important to allow enough time for the process. To ensure a smooth sale once you find a buyer, you should make sure that your business is in order.
You then need to consider where you are most likely to find a buyer. There are numerous possibilities here, as well as the many ways you could advertise your business for sale. Alternatively, enlisting Franchise Resales to manage your sale means you can have a smooth sale from beginning to end, as well as advice on how best to prepare your business for the sale.
Have a professional Prospectus of Sale
Providing a professional sales prospectus will allow prospective buyers to ascertain the information they need about your business; this is essential. Include the business potential, it will allow a buyer to envisage what they will benefit from acquiring your business.
A prospective buyer will perform their due diligence on your business – if you exclude any important information, a potential buyer will find out. Being open and honest is the best way to sell your business
For a free market appraisal contact us on 01522 246811.