Garden centre owners decide to sell due to a variety of factors. You may be tired of working irregular hours in a seasonal industry and are ready to pursue a more traditional and predictable nine-to-five job. You might be ready for a more steady income that isn’t affected by a varying degree of uncontrollable circumstances that often come with the industry.
Or, maybe you’re simply ready to retire and reap the rewards of all your hard work! Regardless of your reason for selling, preparation is key.
Preparing to sell your garden centre
Before you put the for sale sign on your door, the first thing you want to do is make sure it’s the right time to sell. In order to gain the most profit from your exit, you want to be selling in a market that can bring the most favourable offer.
Once you’ve decided to start the selling process, take time to prepare your business for sale. You want to make your garden centre as appealing as possible to potential buyers, so make sure it’s profitable, desirable, and has dependable people on staff.
In addition, evaluate the property and the condition of all the plants with the eyes of a prospective buyer in mind. Conduct all necessary repairs and renovations to make the premises as turn-key and inviting as possible.
You will also want to talk with your employees and determine if they intend to stay on during the transfer of ownership. As you know, customer service is key in the sector, so highly trained and knowledgeable staff who plan to continue working will add tremendous value to your establishment.
When establishing the valuation of most businesses, location is typically one of the more important assets. Although this is still important for garden centres, the potential for profit, growth, and expansion is even more crucial.
Because garden centre values vary substantially depending on size, location, town planning consent, and potential. It would be wise to hire an expert to help you properly value your business. A reputable appraiser will know how to properly assess the trading patterns and potential of your garden centre, and they will have a thorough understanding of regional demand and the price range of similar businesses for sale.
You can expect prospective buyers to consider the land and buildings as well as the profit potential during their own valuation process. They will also evaluate the condition of any plants, products, and equipment included in the sale, so make sure everything is in top condition.
Hopefully, you’ve been preparing your business for sale throughout your ownership … always having the thought in the back of your mind that you would one day decide to exit. However, if life has taken some unexpected turns and you find yourself ill-prepared, don’t worry. You can still achieve a successful sale if you don’t rush the process and take time to get everything in order.
One of the most essential components for you to be able to present a potential buyer are detailed financial records, so they can accurately prove the long-term profitability of your business.
During the due diligence stage, buyers will want to investigate all aspects of the business. It’s often wise to enlist the help of an accountant to gather and prepare documents highlighting your garden centre’s financial performance, legal and tax compliance, customer database, and assets to help ensure you don’t miss a vital step in the process.
Finding a buyer and negotiations
The garden centre industry is specialised and unique. The future owner of your business will need to be passionate and knowledgeable about the industry, having a love of all things gardening. That being said, keep in mind that it might take time to find the perfect buyer, so be patient and don’t rush into selling too soon and missing out on your opportunity to bring in the most substantial return possible.
Lastly, it’s highly recommended that you work with a reputable business broker who can help you evaluate your business and determine specific areas for improvement. They can also find and vet buyers and thoroughly prepare your garden centre for a smooth transfer of ownership.
Selling your business can be a bit stressful so let us help you make this transition as smooth as possible for you! Visit here and begin your journey to a successful garden centre exit.