Question: We need to sell one of our assets fast – do we prepare in depth?
SOURCE: INSIDER, OCTOBER 2009
Answer: Yes.
Selling business assets fast is mostly common sense. It’s about good organisation and facing the reality of what you own. This may sound harsh but that can sometimes be very different from what you would like to sell.
Here are my 4 top tips:
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Work out exactly what you’re selling
Is it a corporate sale (i.e. is property just part of the deal) or the sale of property itself? Are you selling all or just part of it? If part, do you need to sort out a fair division and rights? Is it an asset at all or an onerous operational lease? Is it reliant on rights that won’t transfer? Will employees transfer and do you want that?
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Preparation, preparation, preparation
Do you hold the relevant papers? If not, where are they? Pull together all that a purchaser needs. Presentation can be key. The watch words are “user friendly”, so put all environmental reports, construction, VAT, lease, planning and building control documents, utilities info, fire safety risk assessments, management contracts, etc in one clear package, in one place.
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Control the message
The market is tougher. Funders and buyers are deeply wary of problems. Maybe you bought assets in the boom times, within a business or as a job lot? Maybe property just wasn’t that important to the deal? Did you discover holes on purchase but took a view to “get the deal done”.
Explain what you hold. If there are flaws, disclose, fix or control them, and block later price-chips.
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Involve the right team
Key data and knowledge is often held by folk inside and outside your company. Involve them from the start. Alternatively consider a “stress test” of major assets by “fresh eyes”. Do it early and do it quietly.
If there is one key message it is this – get a good commercial grip on whether you are exposed, and don’t get caught out by your own assets.
AUTHOR: Simon Etchells
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