One in four small and medium-sized Kiwi businesses are expected to sell up over the next decade, as the baby boomer generation retires – according to research by Link Business Brokers.

But with the business landscape currently unstable and turbulent, will you get the return on investment (ROI) you were hoping for when you put your small business on the market?

The calm, predictable business waters of preceding decades are over. We’re trading in turbulent times, where every small business is likely to be hit by unexpected external threats. These choppy waters may be one of the drivers for selling up and taking on a more relaxing life in retirement. But if you sell now, will there be a market for the business?

The key is to plan ahead now, and to make some proactive changes to your business model – so your business can become the most attractive proposition to potential buyers.

Let’s explore four key ways to boost your sale price and ROI.

Clean up your finances and get some financial clarity:

Potential buyers will want to scrutinise your financial records and cash position. Make sure your bookkeeping and finances are impeccable, with accurate and up-to-date accounts.

Address any outstanding debts or liabilities and streamline your expenses. If you can demonstrate that you’re a cash-rich and profitable enterprise, this will significantly increase buyer confidence and valuation. Consider a professional audit to validate your financial claims.

Document your processes and systemise the business

Buyers want to see a business that can run smoothly without you, the previous owner, being involved. It’s vital to document all key processes, procedures and customer relationships, so your buyer has a ‘how-to guide’ for running the business.

Systemise all your operations and aim for peak efficiency. This shows the business is sustainable without you at the helm and reduces the perceived risk for the buyer.

Train up a strong management team

If you have key, trusted managers and employees, make sure they're capable of stepping up and running the business once you step down.

A strong, capable management team adds significant value to your business. It shows the business's resilience and reduces the buyer's reliance on your continued involvement. If there are gaps, consider hiring and training potential successors before the sale.

Work with professional advisers

Selling a business is a complex process. Having the guidance of experienced professionals, such as business brokers, accountants and lawyers can make a significant difference.

Brokers will help you value your business and market it to potential buyers. Accountants will make sure your financials and strategic thinking are in order. And lawyers will help you handle the legal aspects of the transaction. Working with these advisers makes it easier to navigate the complexity of the sale process and maximise your price and ROI.

Talk to us about preparing your business for sale

The work to optimise your business starts several years before you intend to put the company on the market. So the time to act is now!

Come and talk to the team about your retirement plans, succession strategy and coming up with a clear exit plan that will deliver on your personal goals.