Ask the experts

Do you have a burning question that you would like the answer to? Or maybe you’re looking for some advice to help your business? In each edition some questions will be shared and answered by some of The Business Bulletin experts.

Q. How do I go about selling my business? A. I’d recommend anyone selling a business to have a good accountant and tax advisor to work out the best most tax efficient way of selling. I’d also recommend a lawyer who is experienced in business sales.

A key to selling a business is the legal structure and documents. There will be either a share purchase agreement (if you’re selling shares in the company) or a asset sale agreement/business transfer agreement.

The buyer will want the seller to give warranties on as many things as possible. A warranty is saying something is true/correct. The consequence is if it turns out to be inaccurate or untrue they will withhold money or sue you.

So a seller’s solicitor will want to minimise your exposure to onerous warranties. There may be restrictions in the agreements. Depending on what you’re plans are, these may be agreeable or something to water down. And what about payment. You want to make sure you’re going to get paid. If any element of the purchase price is deferred you want to make sure you do get paid.

There are so many legal aspects to consider when selling your business so the top tip has to be: have a great team of advisors around you.

Steven Mather, Nexa Law

A. Selling a business is a big decision for most business owners and it’s important to get it right. It’s also a decision that most people leave until the last minute and my advice is always to consider your business exit strategy at an early stage and plan how you are going to go about it.

If you’ve never given any thought to selling your business then the first two questions will probably be:

■ Is my business sellable?

■ How much is it worth?

The quick way to get an answer to both questions is to ask a professional. An accountant or a business transfer agent would be a good start. There are also online portals selling businesses like Daltonsbusiness.com or Businessesforsale.com and a skim through the listings will give you a sense as to whether there are other businesses like yours on the market.

If you decide that your business is sellable and you want to go ahead and sell it to a third party (i.e. not an employee, business acquaintance or family member) then my first advice is to get it ready for sale. Just as you wouldn’t try to sell a house in poor condition then there are steps you can take to ensure your business is seen at its best such as getting your accounts up straight.

Your main decision then is whether to try to sell the business yourself or whether to appoint an agent to sell it for you. The first option is cheaper of course and I’ve given you the names of the two main portals.

On the other hand, appointing an agent will allow you to get on with running your business whilst it’s being sold and the majority of the agent’s commission will only be paid if a suitable buyer is actually found.

Mike Ainsworth, EMF Group

Q. How do I go about choosing a business coach?

A. I think when considering a coach the first question is what do you want out of a coach.

Do you want someone to help with a specific area of expertise? For example financial management? Might it be better to get an FD? Marketing? Maybe get a marketing expert onboard.

For many, people want a coach just to bounce ideas off and chat through problems. For some they want accountability.

In choosing a coach I’d suggest you go with someone who can demonstrate they’ve achieved something and “walked the walk” rather than just someone who has read “Think and Grow Rich” or brought a franchise and thinks they’re a coach. Not dissing franchise coaches at all, some I know clearly know their beans! But just think about who it is you really want and why.

Steven Mather, Nexa Law

A. Firstly I think every business owner should have someone as an outside advisor to help guide a business to ensure that the business meets its goals and is successful.

It doesn’t always have to be someone you pay for. There are probably a number of people in your network who would be open to have a regular session with you talking about the opportunities and problems that your business facing and give you an independent opinion of how to capitalise on the opportunities and overcome the problem.

When choosing a coach, a proven track record is important – so you know they can “do what they say on the tin”! Look at references, maybe ask if you can speak to any existing clients to get feedback on what the coach has achieved. It is not just about qualifications but business acumen and experience. Also, in my view, you need someone that you can trust and relate to – that you have a rapport with and are totally confident in sharing your business issues with. There is no point in holding back on what is going on in your business, warts and all – holding back will only limit the ability of the coach to help.

So think about who you could turn to as a person whose ear you can

bend and shoulder you can cry on when you need to.

Paul Green, The Business Community

A. One of the first things is ideally to use someone you know or who you have been referred by word of mouth recommendation. One of the most powerful things is the fact that someone has worked with that coach and has been successful. They can give you some background history and knowledge on that particular coach.

Outside of that, how ever you have found them (ideally not a random Google search!), research how qualified is this person. What is it that they do? What have they done to get to where they are – running their own coaching business?

Also consider if they are investing in their own learning, growth and development. The industry isn’t regulated, so you need some sort of benchmark of their history and how they became a coach.

Finally, look at the relationship that you have with your coach. It is vitally important you look to build rapport early on, right from day one. It’s not just about - does this coach have all the experience? It’s about - is this the right coach, for me? Is this the right personality? Is it the right fit? That coaching relationship can be a very intimate relationship.

You’ve got to have that trust. You’ve got to have that strong connection.

Dan O’Connor, Clock and Compass Coaching

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