Selling Your Business? 7 Steps to Maximise Your Sale Price

Selling your business is likely the biggest financial transaction of your life. The difference between a well-prepared sale and an unprepared one can be hundreds of thousands of dollars. Here are seven steps to maximise your sale price.

Step 1: Start Preparing 12-24 Months Early

The biggest mistake sellers make is deciding to sell and listing immediately. The best outcomes come from 1-2 years of preparation.

During this period:

Clean up your financial records
Reduce owner dependency
Document all processes and systems
Resolve any legal issues
Renew or extend your lease
Address any deferred maintenance

Step 2: Get Your Financials in Order

Buyers and their accountants will scrutinise your numbers. Make sure you have:

Three years of audited or reviewed financial statements
Up-to-date GST returns
Clear separation of personal and business expenses
A clear calculation of SDE with add-backs documented
Management accounts showing monthly trends

The cleaner your books, the more confidence buyers will have — and confident buyers pay more.

Step 3: Reduce Owner Dependency

A business that can't run without you is worth less. Period. Before selling:

Hire or promote a capable manager
Document all key processes in an operations manual
Ensure customer relationships aren't solely tied to you
Cross-train staff on critical functions
Set up systems that automate routine tasks

Step 4: Secure a Strong Lease

Lease terms directly impact business value. Aim for:

At least 5 years remaining (ideally with renewal options)
Reasonable rent increases (CPI-linked, not market review)
Assignment clause allowing transfer to a new owner
No personal guarantees if possible

A business with 2 years left on its lease will sell for significantly less than the same business with 8 years remaining.

Step 5: Present Your Business Professionally

First impressions matter enormously. Before listing:

Refresh the physical space (paint, signage, cleanliness)
Update your online presence
Prepare a professional Information Memorandum (IM)
Have high-quality photos taken
Organise a clear summary of the business opportunity

Use OpenBiz's AI Writer to help craft compelling listing descriptions that highlight your business's strengths.

Step 6: Price It Right

Overpricing is the #1 killer of business sales. An overpriced listing:

Sits on the market and goes stale
Signals to buyers that the seller is unrealistic
Loses the critical first-month momentum when buyer interest is highest

Use OpenBiz's free AI Business Valuation to get an objective estimate based on your financial data. Compare with similar businesses on the market. Be realistic.

Step 7: Choose the Right Sales Channel

You have several options:

List it yourself on platforms like OpenBiz (free to list, maximum control)
Engage a business broker (typically 5-10% commission)
Approach buyers directly through your network
Combination approach

For most small businesses under $500K, listing on OpenBiz gives you direct access to qualified buyers while keeping costs low.

Bonus: Timing Matters

The best time to sell is when:

Revenue and profits are trending upward
The industry outlook is positive
You have a long lease
You're not desperate (desperate sellers get low prices)
The economy is stable or growing

Don't wait until you're burned out or the business is declining. Sell from a position of strength.

Conclusion

Preparation is everything. A business that's well-prepared for sale will attract more buyers, generate competitive offers, and ultimately sell for a higher price. Start early, clean up the details, and present your business professionally. The extra effort will pay for itself many times over.