When to sell your business?

It is not a good idea to sell the business just because you need money.  It is always possible to get banks and others to lend to a good business which makes profits.  If your business is doing badly, then it is better to work hard and improve the business to make profits and then sell for much more price.  If you give up on the business you seldom get a good price.  If you are not very clear about how to improve your existing business, then get hold of your business consultants or send an email to [email protected] or whatsapp 72310395.  Businessmen generally run business in order to sell or in order to pass it on to the next generation.  For both reasons they have to improve the value of the business. 

How to sell your business?

Generally you should prepare a Sale Memorandum giving information about your business.   The information will include CVs of key employees, lease deed, most recent water, electricity and phone bills, estimate of expenses, actual income record for the past at least one year, 3 years financial statements, titlte deed or blue books for the assets that are being sold, list of assets with rough values that may lead to the price expected, etc.  You should procure a confidentiality undertaking from the prospective buyer before parting with Sales Memorandum.  You are allowed to take a deposit from the prospective buyer.  But you normally refund a portion of the deposit if the buyer does not end up buying the business for no fault of yours.  The buyer may ask for an Offer to Sell which you should give specifying the period of validity.

How much to price the business?

This is a million dollar question.  Normally a business is valued at so many times the profits of the business.  You should approach a professional business valuer such as RSM Botswana to get an indicative price for your business or shares.