Thinking about selling your business? Whether you’re eyeing retirement, pursuing a new venture, or responding to market changes, selling a business is a significant move that demands careful planning. Asking the right questions early can make the difference between a profitable exit and a costly mistake.
At The Brokerage Connection, we help business owners across Australia navigate the sale process with confidence. This article explores the essential questions to ask before selling your business, how to prepare for sale, and when might be the right time to make your move.
Why the Right Questions Matter
Selling a business isn’t just a financial transaction—it’s a strategic decision. Knowing which questions to ask can:
- Improve your business’s saleability
- Maximise the final selling price
- Minimise risks and surprises during due diligence
- Help you transition smoothly to the next chapter
Key Questions to Ask Before Selling Your Business
1. Is My Business Ready for Sale?
Preparation is everything. From updated financial records to streamlined operations, ensure your business is in its best shape. Read how to prepare your business for sale.
2. What Is My Business Worth?
Get a professional valuation that considers market trends, industry benchmarks, and your financials. This will also help you set a realistic asking price. At The Brokerage Connection, we provide expert business valuations tailored to your industry and goals. Our team uses data-driven insights and local market experience to give you an accurate picture of your business’s worth.
3. When Is the Right Time to Sell a Business?
Timing can greatly affect your outcome. Consider market conditions, business performance, and personal circumstances.
4. Who Are My Potential Buyers?
Identify whether you’re targeting strategic buyers, competitors, investors, or internal staff. Each buyer type comes with its own pros and cons.
5. What Will I Do After the Sale?
It’s important to plan ahead. Are you retiring? Starting a new business? Having a personal goal helps define your ideal sale terms.
6. Have I Engaged the Right Advisors?
Surround yourself with the right team—business broker, accountant, and solicitor. They can guide you through complex negotiations and contracts. Discover what a business broker does.
How to Prepare Your Business for Sale
Preparing a business for sale involves more than just sprucing up your storefront. Consider these practical steps:
- Organise your financials – clean, accurate records are critical.
- Update legal documents – ownership structures, leases, and contracts.
- Enhance operational efficiency – make your business less reliant on you.
- Identify growth opportunities – future potential adds value for buyers.
- Conduct internal due diligence – preempt issues before buyers find them.
For more, check out our guide on The Business Sale Process.
When Is the Right Time to Sell?
There’s no perfect time, but there are indicators to watch for:
- Strong, consistent revenue performance
- High demand in your industry
- Favourable economic conditions
- You’ve hit personal or financial goals
Selling at a high point can help you attract serious buyers and higher offers.
FAQs
How do I prepare my company to sell?
Start with clean financials, strong systems, and reduced reliance on the owner. Get professional advice early.
How to sell a small business in Australia?
You’ll need a business valuation, marketing plan, legal contracts, and ideally a business broker to assist with negotiations and compliance.
What documents do I need to sell a business?
Tax returns, financial statements, lease agreements, employee contracts, IP and asset lists, and business licences.
What are buyers most concerned about?
Sustainable profits, reliable systems, low risk, and a smooth handover process.
How long does it take to sell a business?
Anywhere from 3 to 12 months, depending on market demand and how prepared you are.
What’s the most common mistake sellers make?
Overvaluing the business and going to market unprepared. Learn more in our guide: Common Mistakes to Avoid When Selling Your Business
Should I tell my staff I’m selling the business?
Timing and discretion are key. It’s often best to wait until a deal is more certain, then communicate clearly and honestly.
Can I sell my business if it’s not profitable?
Yes, depending on the assets, IP, or customer base. However, the price and buyer type will be different for a profitable business.
What role does goodwill play in a business sale?
Goodwill reflects brand value, reputation, and customer loyalty—it can significantly impact valuation.
Is it better to sell shares or assets?
This depends on your business structure and tax implications. Always seek legal and accounting advice.
What happens after I accept an offer?
You’ll move into due diligence, negotiations, contract finalisation, and settlement.
Do I need to stay involved after the sale?
Often yes, at least short-term. Many buyers require a handover or training period to ensure a smooth transition.
Final Thoughts
Selling your business is a big step, and asking the right questions will help you get it right. From preparation and timing to understanding buyer concerns, planning ahead sets you up for success.
At The Brokerage Connection, we guide business owners like you through every step of the sale process. We have experienced business brokers located across major Australian cities including Sydney, Melbourne, and Brisbane, ready to support your journey.
Thinking of selling your business? Let’s start with the right questions. Contact us today for a confidential discussion.