So, you want to sell your business quickly. Maybe you need to sell your company quickly for personal or financial reasons. Perhaps, the market for your products or services have changed, and fierce competition has lowered your profit margins, or you have another venture opportunity that needs to be acted on quickly. Whatever your reasons, selling a business quickly in Singapore can be financially rewarding when approached in the correct way.
But first, it’s important to have a good idea of how long it will take. There are many factors that go into the sale of a company, and each one will have an impact on your timeline. Finding an interested buyer is just the first step in the process to sell your business fast.
Singapore is a ‘business friendly’ market, for both buyers and sellers.
Renowned for its robust legal, corporate, and tax systems, the city-state offers a business-friendly environment that will help you sell your business quickly. The well-established governance framework created by Singapore’s Accounting and Corporate Regulatory Authority (ACRA) ensures a transparent and trustworthy environment.
Singapore’s commitment to providing readily available information, including publicly accessible financial data further accelerates the due diligence process, to enable quicker decision-making to selling your business quickly.
How Quickly Can a Business Sell?
Understanding the timeline for selling a business is crucial, as there’s no one-size-fits-all rule regarding its duration. The pace of the process hinges on various factors, including the business’s size and industry classification.
Selling a business involves multiple stages. Initially, you’ll need to assess the business’s value, locate a potential buyer, and negotiate the sale price. Subsequently, numerous due diligence and legal procedures must be fulfilled once the initial agreement is reached.
On average, this entire process typically spans six to twelve months. However, some transactions conclude sooner, while others extend beyond this timeframe. It depends on how quickly you and the buyer can reach an agreement and complete all the steps.
Strategies for Expediting Business Sales
While selling a business can be a time-consuming endeavor, there are actionable steps you can take to sell your business quickly.
For those seeking a quick business sale in Singapore, here are our top 5 recommendations.
1. Prepare Your Business Documents & Data: Prioritize preparing your business for a quick sale by ensuring it is well-equipped with necessary documentation before initiating the search for potential buyers. It’s essential that you be ready to furnish interested parties with comprehensive information regarding your company.
This includes:
- Recent financial records such as updated accounts, tax returns, profit trends, and sales history
- Existing contractual agreements with suppliers and customers, property leases, title deeds, licenses, loan agreements, etc.
- Identification and disclosure of any existing or potential risks, as well as past or ongoing litigation matters
- Remember, it’s imperative to guarantee that your business can operate seamlessly in your absence, and that all employees have received adequate training and if necessary, prepare training materials for new employees.
2. Business Valuation: An essential aspect of selling your business quickly involves establishing its worth. Given Singapore’s transparent business landscape, most M&A transactions, including sale prices, are readily accessible through desktop research. Remember that the more you understand about market prices and conditions, the more likely it is you’ll get a fair price for your SME.
3. Investor Presentation: edenX recommends crafting an investor presentation as a key strategy for effectively promoting a business.
This presentation serves to spotlight the business’s strengths and advantages, aiming to captivate potential buyers and investors. Ensure that it is professionally written, meticulously edited, enriched with pertinent graphics, and photographs of the property and operations. And remember, a concise video presentation illustrating the business’s ownership benefits may help your business sell quickly.
4. Finding Buyers and Sellers: The conventional approach of researching and contacting potential buyers is notorious for its time-consuming nature. Therefore, here are two faster alternatives for you to consider:
A: Utilizing online marketplaces dedicated to buying, selling, and listing businesses for sale. Through these platforms, sellers gain access to a pre-existing pool of buyers actively seeking business acquisitions.
B: Hiring an M&A Advisor brings several benefits that expedite the process, including their expertise in navigating complex negotiations, accessing a broader network of potential buyers or sellers, and streamlining due diligence procedures. However, advisers often charge a relatively higher fee, so you will need to ensure that the value they add is more than what they charge for their services. In absence of which you may see your financial gains diminish.
5. Engaging with Professionals: It’s important to involve a lawyer and accountant with specific experience in buying or selling businesses. While an accountant is not necessarily considered essential throughout the process, a lawyer is typically engaged towards the end, especially when legal documentation becomes a focal point.
Leveraging the tips and recommendations outlined here, along with Singapore’s distinct efficiencies, governance, and protections, promises to expedite the business selling process. By capitalizing on these advantages, you can navigate the process with confidence, ensuring a swift and successful transaction that maximizes value and minimizes risks.
