The secret in achieving the highest possible price is simple. Without information there can be no value.

Do you want value?

*	Listen to the experts
*	Overpriced businesses do not attract serious buyers
*	Your business is in competition with all others in your profit range
*	It takes hard facts to satisfy a buyer
*	The average business is on the market for 3 months before the seller becomes realistic about his demands, lowers his price and considers terms
*	Very often the first offer is the best offer
*	If your business is on the market for a long time, buyers become suspicious and think there is problem with the business

Confidentiality

The confidentiality of your business is extremely important but once the buyer has been qualified you must supply the information

Price Achieved

Fabulous businesses receive a fraction of their asking price and other ordinary ones achieve high prices. Why? The attitude of the seller. Buyers are not fools - never treat them as such. You as the buyer? What would you expect? What would you wish to see? What price would you pay? Would you be interested if the seller was not prepared to divulge the figures etc? Remember! No matter how good you think your business is, it will take hard facts to satisfy a buyer.

To make a decision the buyer needs:

*	Monthly turnover figures for the last 12 months
*	Breakdown of monthly expenses
*	List of assets with valuations
*	Copy of the lease of the premises
*	List of staff - plus salaries / service / contracts etc.
*	Write up on the business
*	Management accounts up to date
*	Balance sheet/ Income statement for the last 2 years

Delays in details turn hot buyers into cold fish who swim away

Mike Hindle of Aldes Business Brokers, www.aldes.co.za

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