Deciding to sell your nursery business is naturally a challenging and often confusing time, so it’s important that vendors prepare properly. Redwood Dowling Kerr (RDK)’s Andrew Steen gives five pieces of advice to help anyone looking to sell their business successfully.
1 . Choose the right Broker
Choosing to sell through a broker is the best, most effective way of ensuring that not only does your business sell but that it reaches the correct buyer, with many options available, it’s important to research which brokers have a proven track record of success within the sector. Look for a broker that you can trust and rely on to support you throughout the process. In addition, it’s important to choose a broker who exclusively works on your behalf. Not influenced by external bodies such as banks and regulatory bodies.
Mrs. Kain, Vendor of Quality Kidz Nurseries, who sold through Redwoods Dowling Kerr said: “Without the support shown from the Senior RDK Sales Negotiator Sarah Ellison, when times were testing on the sale, I don’t believe it would have been completed”.
2. Prepare your documents
Make sure you speak to your negotiators, lawyers, anyone whose job it is to represent you well in advance to ensure you obtain details of that information you are required to provide. Have all your information prepared and up to date, including all accounts, regulatory reports, planning contracts, and safety. All of this information is crucial for prospective buyers and so it’s imperative that they’re ready to go when in the interested party arises.
3.Prepare for your viewing
it’s important to have your financial information fully up to date and that you prepare your nursery for viewing as best you can. A huge part of the assessment of a business’ potential comes through prospective buyers actually visiting the premises, rather than simply reading about it through other sources. It sounds obvious, but make sure it’s clean and tidy as it can be that everything a potential buyer might be interested in is provided.
Be pro-active and ensure there is a constant dialogue between you and your agent. Any negotiator worth their salt will aim consistently keep you up to date with every stage of the sale, but don’t be afraid to keep picking up the phone. Selling a business can often be a stressful process, but you will find that staying in constant contact with your representative will offer your reassurance and vital guidance.
A vendor who recently sold their nursery with Redwoods Dowling Kerr said: “There were many twists and turns. While I was fraying the edges, my negotiator was in regular contact, supplying up to date information and constantly providing reassurance”.
5. Have a Handover Plan prepared
The work doesn’t stop once the price has been agreed, so it’s important to prepare for the eventual handover of your business to the new ownership. Make sure you and the buyer are on the same page when it comes to logistics, times/dates, staff members, etc. Little details can stall the handover process and make things more difficult for both the buyer and the seller. It’s important that are happy with whoever takes the reins from you, as it will provide a great deal of reassurance knowing that you’ve left it in good hands.
Mrs. Jeanette Threadgold, who wished to retire and therefore sold said: “ I am happy that my preschool, which I have worked in for 33 years, and owned for 25 years, and owned for 25, has been handed on to people who care about it!”
Choosing to sell your nursery will be a big step and it’s not a decision that should be rushed. However, if you decide the time is right for you to sell, then it’s vital that you are prepared, have a clear focus and are willing to communicate.