Encouraging words from buying clients always keeps my energy high and pushes me to continue delivering the best. As you can appreciate, the sellers were equally as pleased.
This particular transaction took 12 months to complete, slowly chipping away through Lockdown and COVID restrictions over 2020, to be able to finally settle in January 2021. The business sold was a small consultancy, so very important that the chemistry of the people involved worked equally as well as the mechanics of the deal.
Happy Buyer, Happy Seller and Happy Broker.
We’re seeing a number of trade based businesses at present that are not getting the selling pricing they probably deserve and that prospective buyers are turning their noses up at… and I don’t get it.
They are good businesses, making good money.
YES, they require work (albeit manual) but then doesn’t every good business.
If you’re at all interested in:
- or want to be advised of those that come on the market
Please drop me a line at firstname.lastname@example.org and I can fill you in with further details as they come to hand.
The current entrepreneurial owner took this 85 year old Madame and reshaped her into being 21st century ready. She, the business, now is in need of the next new talent that can utilise the robust base and morph it into the online sensation it is longing to be…
• Niche Business with revenue in excess of $600,000
• Adjusted profit to owner in excess of $100,000 FY2015
• Supplying Australia’s leading fashion houses, retailers and manufacturers
• Specialising in the craft, gift and packaging market
• Arrangements in place with suppliers, including exclusive with key supplier in Europe (requiring bi-annual overseas trip)
• Iconic brand with 85 plus years of history
An ideal opportunity for a person(s) seeking a business with a creative flair. This business imports its products from Europe and Asia and is highly regarded within its market for providing beautiful, unique and quality product together with reliable and professional service.
The business owner’s main involvement is:
• General Management
• Business and Product Development/Marketing/Sales
• Travel bi-annually to meet with key suppliers in Europe and Asia
What does the business do?
• Importing and wholesaling of its niche range of products
• A growing percentage of its business is based on orders that are customised for specific clients
Substantial investment, positioned for the Future:
• “Digital ready” with a streamlined website to handle both retail and wholesale clients
• Extensive and diverse database of clients across a broad range of industries
• Automated and systemised operational procedures requiring low staffing levels
• Cloud-based business system (Netsuite), with integrated accounting/ERP, inventory management, CRM and webstore for multi-channel marketing
• Electronic Data Interchange (EDI) system used to trade with national chains
• Over 80% of clients prepay, allowing minimal cash gap
• A number of growth areas have been identified and preliminary research commenced
The business is ready to be relocated to a property of your choice, and can also be integrated into an existing business. With key employees and systems in place, the business offers a number of flexible options and opportunities for a new owner.
Asking Price: $180,000 plus SAV http://www.businessbrokers.com.au/view_listing.php?OID=9797350
Interested? email me at email@example.com
Who would think it is pleasing to use Tax as a Growth Indicator?
This story from one of my charges (Julie Demczuk of www.exclusivepmg.com.au) just this week, got to love a share such as this:
I’m sitting in my office on my own thinking about when I first started the business.
I remember saying to my bookkeeper I can’t wait until I start paying GST. I was so excited when my first GST bill was $6.
After three years my GST bill for the last quarter is $5,668.
What an amazing difference.
What an amazing difference indeed! Whilst I haven’t contributed directly to her growth numbers, she is one the amazing number of Women Business Owners who are building their business as an asset, ready to be saleable when the time comes (which may be right round the corner!)
So very proud of this entrepreneurial mother.
Just think how well off the new owner of a business like this will be. Not only is the thing well-established, if $5000+ of GST is being paid quarterly, then the revenue has to reflect same. Much more palatable when compared to waiting for revenue as a start-up… Interested in knowing more? Please drop me a line at firstname.lastname@example.org
Some would say “why?”, others, “why not?”
Some are born to start, build and hold for as long as it takes.
Some are born to start, build and pass the baton on.
Which one are you?
Trying to sell your business on your own, having not done it before, can be fraught with danger!
As the old adage goes, “You don’t know what you don’t know!“. There’s always the chance that you luck your way through, and all hail to you if you manage to do so.
But what I know for sure is, as an experienced Business Broker, is that most do not sell, or sell well.
You (as the owner) eventually use a Broker after trying unsuccessfully.
In many cases, all that’s unfortunately been achieved is that it takes a whole lot longer to sell and by potentially taken your eye off the business ball, the numbers may then reflect the distraction (which is not good for sale purposes)…
So why consider using a Business Broker from the outset?
- We are licensed to assist in the buying and selling of businesses, at the State level
- We have insights, gleaned over many years, into specific industries or type of businesses
- We maintain confidentiality of buyer/seller
- We act as a buffer between the buyer and the seller
- We have a working knowledge of accounting, financing, legal, marketing etc to avoid unnecessary surprises in a transaction
- We play the role of the “conductor of the orchestra” and even the “project manager”.
If trying yourself is what you want to do first, then watch out for these common mistakes to avoid when exiting. Not:
- Focusing on the bigger picture
- Doing your own research of your own market
- Thinking through the “risks” – almost impossible to be “risk free”
- Entertaining a willingness to accept risks •Example: Special conditions that can “kill the deal”
- Regarding the probability of things going wrong
- Reviewing the seriousness of quantifiable damage
- Budgeting for upfront costs
- Adapting “generic due diligence checklist/template” to your needs or size of the transaction •Example: Using a checklist suitable for multi-million dollar enterprise on small businesses
- Deeming it worth the extra expense to seek input from accountants and solicitors with your particular industry expertise, while maintaining an existing relationship with your accountant or solicitor.
- Being sure of who or what professional to seek appropriate advise from
- Understanding the limitations of what the professional advisors can provide
- Giving appropriate instruction to the professionals engaged
The following are 5 tips to help enhance the sale price of your business… by answering these 5 questions, you are seeing your business popping on Buyers Goggles.
- Saleable? (i.e. not revolving around you)
If the answer is no to any of these, then you/we have got work to do. Contact me.
An excerpt from my article featured on www.startsatsixty.com.au talking about popping Buyers Goggles on to investigate all the different buying opportunities there are…
Many people think that the typical small businesses offered for sale are only those such as cafes and other food or retail outlets, however almost all types of businesses do come up for sale at some point in time. (There is of course the option of tapping an existing business owner on the shoulder and asking them to consider thinking about selling as well).
I strongly encourage you not to make a decision about starting a business until you have investigated what the market has to offer, to see if there are businesses available within the area that you are interested in. By buying, this will enable you to “jump” into a revenue-generating business and leverage off the hard work already undertaken by someone else.
Unless you are looking at developing and delivering something unique into the market place, or you have previous experience to take a start-up business to a stage where it is profitable in a short time frame, buying an established business will generally be more instant, attractive and financially rewarding.
Want to read the full article, here it is…