Work that begins years ahead.
WHAT TO ADDRESS FIRST
Records.
WHAT THAT MEANS
Accounts prepared properly Tax filings current Bank accounts reconciled Personal and business finances separated
WHY SEPARATION MATTERS
Mixed finances make the business's actual performance impossible to establish.
WHAT ELSE TO ADDRESS
Corporate documents and registers, current Contracts documented and signed Intellectual property assigned to the company Assets registered in the company's name Employment arrangements documented Licences and approvals current
WHY ASSETS IN THE COMPANY'S NAME
Assets held personally are not part of what is sold.
WHAT TO EXAMINE
Anything a buyer would question.
WHAT COMMONLY APPEARS
Undocumented loans between owner and company Family members employed informally Verbal agreements with customers or suppliers Property occupied without a lease Unremitted statutory deductions
WHY THAT LAST ITEM
It is a liability the buyer inherits and it stops transactions.
WHAT TO DO
Regularise all of it.
WHAT TO BUILD
Management information: monthly figures a buyer can examine.
WHY
It evidences that the business is managed.
WHAT TO REDUCE
Dependence on you Customer concentration Any single point of failure
WHAT TO IMPROVE
Margin and predictability.
WHY
They drive value more than revenue does.
WHAT TO START
Two or three years before you intend to sell.
