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Perth Business Brokers. The current financial climate is an excellent time to sell a business in the small to medium range.

There have been and continue to be a high number of redundancies. As is so often the case, these redundancy payments are nowhere near enough for the recipient to retire on. They still need to earn an income. Consequently, we are getting an increasing number of enquiries for businesses in the $100,000 to $500,000 range.

When you decide to sell a business, it  is an unnerving task, even under ideal circumstances. It is even more challenging when sale preparation is lacking, deficient or misaligned with market realities. Across all sectors and industries, effective pre-sale planning is the key to achieving your desired sale outcome

One of the biggest mistakes business sellers make is trying to do everything themselves. Very few owners have the time or experience to handle selling a business alone.  Perth Business Brokers and West Australian Business Brokers in particular, streamline the process and ensure that your business is truly ready for prospective buyers.

The most important aspect of preparing your business for sale is to value it correctly, Valuation is a tricky process. Although there is a tendency for sellers to inflate the value of their business, it can be equally dangerous to undervalue your business. If the asking price is too low, you may leave money on the table or, worse yet, buyers may assume there is a problem and move on to other opportunities.

While your own insight and quick, easy-to-use valuation tools are a good starting point, ultimately, you need the objective valuation provided by a qualified third-party. Business valuers and Perth business brokers who offer valuation services understand the marketplace and have the expertise to provide an accurate measure of your company's real value. Considering that your business is likely your most valuable asset, it pays to get the price right.

When the time comes to sell your business, you want to be assured that you are dealing with a qualified specialist . West Australian Business Brokers work very closely with you to ensure you receive everything that your business is worth.

Contact us on the link below.

https://wabb.com.au/business-brokers-perth/

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The post Businesses for Sale in WA appeared first on 1800 566 872.

Not everyone is skilled in business sales. Selling a Business is often a once in a lifetime event which can be both daunting and emotional. You have probably dedicated many years to building your business. When the time comes to sell your business, you want to be assured that you are dealing with a qualified specialist. West Australian Business Brokers work very closely with you to ensure you receive everything that your business is worth.

Our knowledge and 30 years experience in business sales and the Perth market gives us a very unique insight into the marketing of your business.

The Business Sales Process:.

As the starting point we will need to understand the reasons for the sale and gain an understanding of your preferred exit strategy. We also need to take an overview of the business in order to advise as to whether the time is right to sell.

Valuation

Once we are both confident that the business is ready for sale we will need to undertake a detailed valuation.

This process will involve gaining an understanding of your market strength and position, your financial performance and your assets and liabilities.

Marketing

As soon as we are formally instructed we will produce an Information Memorandum for your approval. Once this document is approved the marketing of your business will begin.

Confidentiality

Confidentiality is of paramount importance throughout the sale process. All potential purchasers are very carefully screened in order to ensure that they are both qualified and serious prospects for your business. Undertakings of confidentiality will always be required from all interested parties prior to any detailed information being released. In any event commercially confidential information will not be released without your approval.

The Offer Document

As soon as agreement is reached with your buyer we will draw up the offer document. This document will be used by the lawyers and other professional advisors to ensure that the contracts and other formal documents accurately reflect the terms of the transaction.

Due Diligence

Your buyer will want to undertake some detailed Due Diligence. We will coordinate this exercise and will be available to try to ensure that any misunderstandings or issues are resolved quickly and to your satisfaction.

Completion

We will work with the other professionals involved in order to ensure that the transaction is completed effectively and in accordance with the timescale agreed.

If you are about to sell a business, please call 1800 566 872 or contact Lee Goldstein  here. 

Ready to find out more?

Contact Lee Today

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When preparing a business for sale, history has shown us that there are two conditions that indicate it is an ideal time to sell:

Your business is doing well and making money

When buyers are active

Of course, these conditions do not often occur at the same time, which makes it crucial when preparing a business for sale that you capitalise when they are.

You should be aware of your annual financials, the position of your business and whether the direction is positive. It is important not to fall into the trap of waiting for your business to suffer to consider selling – even when buyers are active, they will be looking for companies with high potential, not those appearing to be heading downward.

Whether you are preparing a business for sale now or several years from now, the most important thing you can do to have a smooth transition is to have a plan from the beginning.

Keep in mind that you may not always get the price you want. You may have an unrealistic price in mind, but in many situations, the price you want does not always match what a buyer is willing to pay.

Selling a business is a complex process, you have to keep your emotions aside and separate your personal expenses from the business and get everything in writing.

Get a business valuation. One of the first things you should do is obtain a realistic idea of what your business is worth from an objective, outside source. A professional valuation will give you a basis for gauging buyer offers and will give you an idea of what you can expect to net from the sale. It will also tell you your business’s market position, financial situation, strengths, and weaknesses (which you can hopefully correct prior to putting it on the market).

As a rule, you should make sure the company performing your valuation has the expertise and experience along with the qualifications to perform business valuations.

Secure your intellectual property. Check that the trademark for your business name and logo, and any other valuable business assets, are secured so they can be included as part of the sale. Learn the steps you can take to protect your intellectual property.
 

 Know your reason for selling. Buyers are always curious as to why a seller wants to exit a business. (If it is so great, why are you leaving?) Be prepared to articulate your reasons.

Keep it discreet. If you are in a business where a sale may send your customers or clients into panic mode, it’s probably best to keep an impending sale quiet until you have identified a buyer and finalized the details of the sale. That includes determining how you will transition your customers to the new owner. 

Hire a professional business broker to help you with listing your business for sale. A business broker will help give your business market visibility where you want it and will increase your chances of finding the best fit. A broker can also help you set a realistic asking price and help you with marketing your business and contacting potential buyers on your behalf.

Set a realistic asking price. If your business is doing well, it can be tempting to set an extremely high asking price. In reality, there are many factors that buyers will look at when considering a purchase. Consider how all of these things will factor in and how you would view the business from all angles if you were the buyer. Consider profits, client relationships and the personal investment of time that will be required for the new owner to make the transition successful and set your asking price accordingly.

Get the paperwork in order. The legwork for the sale of a business starts long before you are ready to put up a for-sale sign. All potential buyers are going to want to see taxes, financials and any existing contracts pertaining to your business. Take the time to get all of these things organised, and you will help ensure a smoother process from start to finish. Get all of your financial and tax records in order for the past three years, including a cash flow report.

West Australian Business Brokers will go through a process of business optimisation, producing a cohesive and documented business strategy, clear and healthy financials, detailed information on your people and plant. We have over thirty years’ experience to facilitate a smooth and problem free transaction.

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If you are considering Selling a business in Perth, West Australian Business Brokers is here to help.

With over 30 years’ experience we are equipped with the right knowledge and processes to get transactions successfully over the line.

In a sector where many of our competitors simply list businesses for sale, when it comes to selling a business in Perth, we do much more than that. We maximise your sale price, find the right buyer and protect your interests to manage the completion as swiftly and efficiently as possible.

Whether your business is a high street enterprise, an engineering firm or a tech company, we have the  capability in managing complex requirements and providing clients with the vital help and support they need.

If you are looking for a business for sale in Perth, we listen to your requirements and work closely with you to find the perfect match. We can assist with finance, leases negotiations and any tricky aspects of a business sale or purchase.

The principle of West Australian Business Brokers, Lee Goldstein, has been involved in the Sale of Businesses and Business Valuations since 1985. He holds the following qualifications.

• Double Major Degree in Accounting and Finance
• Diploma in Forensic Accounting
• Graduate Diploma in Valuation
• Advanced Certificate of Business
• Advanced International Certificate in Intellectual Property.

Deal with a Qualified Broker

As your business is an extremely valuable asset, you need a broker that understands this. You need someone with the qualifications and experience to ensure you get the correct value. You need someone to guide you through the maze of business sales to a successful settlement.

We offer a confidential consultation, if you would like to discuss the possibility of selling your business. We want to understand your business, position it correctly to maximize your value and then develop a strategy to help you achieve your goals with advisory services during the entire process. Most of the businesses that we represent have annual revenues between $500,000 and $15Million and a verifiable owner's annual net income (including profit, owner's salary, and benefits) of between $150,000 and $2Million

Contact us

Ready to find out more?

Click to sell your business

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Whether you are considering buying a business in Perth or selling your business in Perth, West Australian Business Brokers is here to help.

With over 30 years’ experience we are equipped with the right knowledge and processes to get transactions successfully over the line.

In a sector where many of our competitors simply list businesses for sale, we do much more than that. We maximise your sale price, find the right buyer and protect your interests to manage the completion as swiftly and efficiently as possible.

Whether your business is a high street enterprise, an engineering firm or a tech company, we have the  capability in managing complex requirements and providing clients with the vital help and support they need.

If you are looking for a business for sale in Perth, we listen to your requirements and work closely with you to find the perfect match. We can assist with finance, leases negotiations and any tricky aspects of a business sale or purchase.

The principle of West Australian Business Brokers, Lee Goldstein, has been involved in the Sale of Businesses and Business Valuations since 1985. He holds the following qualifications.

• Double Major Degree in Accounting and Finance
• Diploma in Forensic Accounting
• Graduate Diploma in Valuation
• Advanced Certificate of Business
• Advanced International Certificate in Intellectual Property.

Do you wish to sell your business?

Contact us today for a confidential discussion.

Ready to find out more?

Click Here

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When you are thinking of selling your business, have a reality check before you do anything else.

The process of determining the worth of a business can quite often leave the owners of the business anxious. If they purchased the business and paid a substantial amount in “Goodwill” they may be in for a nasty surprise. All markets have troughs and peaks, and like the housing market in Australia, the business market has suffered.

There are many and varied contributing factors to the decline in the price of businesses. Retail has been hit by the internet, restaurants have been heavily impacted by “Uber Eats” and other similar enterprises. Newsagencies and Lotto Kiosks have had to contend with online purchases. All these factors make the purchase of a business much more of a riskier proposition that it was five or ten years ago. Accordingly, the demand for businesses has fallen. There are still genuine buyers in the marketplace, however they have a multitude of businesses to choose from.

If you purchased a business five years ago, and the profitability of the business hasn’t improved significantly, there is very little chance of you recouping your money (in the present market). Losses in the region of 40% are not uncommon. Undoubtedly, some people paid too much for their business, but others paid the correct price.

If you are thinking of selling your business  in the current climate, the crucial aspects pertaining to business sales are even more important:

• Make sure there are no skeletons in the closet. Buyers will dismiss any business they find issues with.
• Be upfront and honest. A genuine buyer conducting proper due diligence will uncover any inconsistencies.
• Make sure staff wages and entitlements are correct and up to date.
• It is imperative that the business is priced correctly. It’s a good idea to get your business valued.
• Make sure the financials are up to date. No one will purchase a business on financials that are 12 months old.
• You may have to come to terms with the fact that you will not receive the amount that you believed your business is worth. The question to ask yourself is ”Will the market return to what it was?”

Ready to find out more?

Click to sell your business

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Financials are incomplete or incorrect.

The number one reason why a business doesn’t sell (assuming it is priced correctly).

No buyer wants to see messy, outdated financials. This can have severe implications on the sales process. If the financials are not transparent and up to date, the majority of buyers will walk away. If the buyer is looking to arrange finance, this will kill the deal immediately.

Given the importance these documents represent, a business owner should ensure that the books are professionally managed and up to date. Records that are messy, incomplete, out-of-date or containing too many personal expenses will only give prospective buyers and lenders reasons to question the accuracy of the books.

Unrealistic seller valuation expectations.

The price a business is listed at is one of the critical elements to a successful sale.

An owner’s emotional attachment to their business, coupled with an inexperienced business brokers desire to obtain the listing and please the seller, can be a recipe for disaster. Overpricing a business will deter
knowledgeable buyers from establishing communications. Additionally, it will be
extremely difficult to defend the valuation when a business has been priced unrealistically. The typical outcome is that the listing will languish in the marketplace and recovery becomes more difficult. Once on the market for months on end at the wrong price, the process in re-pricing and re-listing creates a whole new set of challenges, the least of which is maintaining credibility.

Decreasing revenues/profits

The majority of buyers are seeking profitable businesses with increasing revenue and profits. When a business is showing declining revenue and profits, alarm bells start ringing with the buyer. While buyers traditionally purchase businesses based on anticipated future
performance, they will value the business on its historical earnings with the major focus on the prior 12-36 months. For those businesses which have deteriorating financials, the seller should be able to articulate accurate reasons for the decline. Both the lender and the buyer will need to obtain a realistic understanding of the underperformance to assess the impact it is
likely to have on future results.

Minor reasons.

• The business has several family members in top management positions.
• The owner is the business. The business cannot effectively run without the efforts and know-how of the owner.
• One or two customers constitute more than 25% of the total business.
• The business’s industry is diminishing or threatened by globalization.
• The owner(s) is aging and has slowed-down, resulting in diminishing revenues.
• The owner did not take time to perform exit or succession planning. To properly prepare the business for sale, the owner should have engaged in exit planning 2-5 years prior to selling.
• Many of the financial rewards of the businesses were taken by the owner in various “perks” which, from a business valuation perspective, will not make it to the EBIDTA as add backs.
• The seller did not take time to become educated on the selling process, especially on the possible ugliness of the due diligence process by the buyer and their advisor.
• The owner did not utilise the professional services a business broker.

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There are multiple avenues available when selling your company and several different types of buyers. The two basic types of buyers are strategic and financial.

Strategic buyers are companies who tend to be in your industry or would like to be, and wish to grow their business either strategically, structurally and/or geographically.

Large corporations are under a lot of pressure to increase sales and profitability and only so much can be attained through organic internal growth. Therefore, in order to meet their goals, the acquisition of middle market businesses has become a very important part of their growth strategy. Once a company identifies an acquisition target that it needs or wants, they usually pay the price necessary to acquire it and the process moves fairly quickly. When selling your company,In most instances, the Strategic buyer acquires 100% of the business and the owner, after transition occurs, can go off into the sunset to begin their next phase of life.

However, what if you want to have more personal time to start enjoying your life now, but you’re not ready to retire. Perhaps you feel your company has tremendous potential for growth and you don’t wish to sell and leave all that money on the table, but you need human resources and capital to attain it. A partial sale to a financial buyer could be the appropriate choice for you. Depending on the management team in place and the owner’s desire, the financial buyer may have them stay to run the day-to-day or take an advisory role, helping to guide the company at a high level. Either way, this allows the sellers to maintain a substantial stake in their company, while not being alone when dealing with all the issues of running and growing a business. These financial buyers usually work with the seller to build their company for 3 to 5 years and when the company is sold once again, the original owners receive a second bite of the apple by selling their retained ownership on the second sale. In many cases this can be as much, if not more, than the original sale amount in terms of monetary payment.

 

Ready to find out more?

Click Here to Sell Your Company

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