On March 15, Hill Rogers is leading a keynote session at the Mumbrella SAGE (Secrets of Agency Excellence) conference in Sydney. While SAGE itself is targeted at independent marketing, PR and creative agencies, many of the issues being covered are highly relevant for any business owner – whether you’re actively looking to sell your business right now, or considering it at some point in the future.
A little effort now, a big return later
Every year Hill Rogers helps many Australian businesses prepare for a successful sale. While the idea of selling often seems daunting at first, the rewards can be life-changing when the right tools are in place. With this in mind, the key focus of Hill Rogers’ Mumbrella SAGE discussion is how build value in your business in order to gain the maximum possible return from your sales transaction.
Making your business more valuable
From optimising your operational structures and financial systems, to understanding the latest market trends and even the general business climate, there are many factors that can influence the success of your sale and make you a ‘hot’ target for acquiring companies. While these vary greatly depending on the specific nature of your business, some of the most important areas to consider include:
How much is your business actually worth? It’s typically a tricky question to answer, but one that needs to be asked and ideally backed up with hard numbers and metrics to present a compelling case to prospective buyers. Identifying and quantifying the key factors that make your business valuable is critical – whether it’s your assets, people, IP, systems, stock, marketing or, in every likelihood, a combination of them all – as is understanding the risks involved for the return you’re aiming to achieve.
2) Tax Structures
The matter of potential tax implications in the sale of a business need to be carefully explored from the very beginning. Are you eligible for tax concessions? Should you set up a discretionary trust? While the initial effort required to establish these structures may seem high, experience shows us time and again the long-term benefits can be significant, so it’s well worth weighing up the time and investment to sort out your affairs upfront.
Accessing finance is notoriously difficult for small businesses. It is critical that businesses have adequate working capital for their operational needs and to undertake initiatives that over time create value for the owners. If necessary, Hill Rogers is able to help you audit your current financing structures and look for efficiencies and savings. We can also facilitate introductions to specialist lenders who may be able to provide you with superior options as and when required.
Considering selling, now or in the future?