FAQ
How can I help you?
Below you’ll find answers to the questions I get asked the most about selling a business and how a business broker can help the sales process.
Selling a business?
Call Queensland most trusted business broker – Marc Phillips.
What are the benefits of dealing with a business broker?
Knowledge is power and seasoned business brokers are full of it. They know what’s for sale, who the sellers are, how much they want in exchange for their company or franchise – all this information can be invaluable when you’re looking at your next investment opportunity. Not only do these experts have years worth of experience but they also take care of more than just legalities. A business broker can help you find the best possible match for your company.
They know which businesses and franchises are up on sale, they will be able to screen them to make sure that it fits with what you’re looking for in a company as well! Once an offer has been made, they’ll assist both parties through the legal process of buying or selling so everything goes smoothly- giving investors peace of mind knowing their investment is safe, as all legal and accounting issues will be inspected and worked on.
I haven’t purchased or sold a business before
We can help you research and gain knowledge of buying and selling a business. Tips and hints that are common for new buyers/sellers are often overlooked. We know our stuff and can guide you on whatever is needed.
An important aspect of using a broker is the time scale that the sale comes in under. Not using one will not guarantee timely completion of the sale.
What is the commission?
The range of the percentage depends mostly on the size and complexity of a company. Typically, they will charge anywhere from 8-12% for their services at sale closing, although the fee is only paid after the completion of the sale. For a quote, contact us about the nature of the sale.
How long does it take to sell a business?
The average length it takes to sell a business is usually quoted by AUS business brokers as taking around 9 months, but this time depends on many factors like the type of company being sold and whether or not there are other offers. All paperwork and finances must also be in order.
I can’t find the right business for sale - what do I do?
If you’re looking for a small to midsize business, it’s best to start by finding out which are available and where they can be found. The hidden market of businesses for sale is where up to 80% of the mature, profitable and fairly priced small and mid-sized businesses that have not yet been advertised as being on the open market reside. Fewer than one in five sellers will admit this information when contacted by someone outside their network who has no knowledge about what type or kind of business might suit them. The few people who know how difficult locating these opportunities can feel relieved knowing there’s an easier way – if only they knew all along! We can help you find the right business, more importantly, the best fit for your passions and skills.
Where are you based?
We are based in Toowoomba. We service all of Queensland with the majority of our business conducted in South East Queensland.
What is a small business owner’s 491 visa?
The Small Business Owners 491 visa is a pathway visa for non-citizens who are on a visa with unrestricted work rights. To qualify as an applicant you need to be living in and operating your own small business full time with DoHA approval; meet Queensland’s BSMQ requirements (you can find out more about these on their website); have purchased an existing regional company, or start-up one of your own.
How long does the visa last?
The new 491 visa, Skilled Work Regional (Provisional) subclass 491 visa will enable eligible skilled workers and their families to live, work and study in designated regional areas of Australia for 5 years. Visa holders will be eligible to apply for a Permanent Residence visa after three years as long they are still working full-time in the same occupation or undertaking studies at level 6 or above on the Australian Qualifications Framework that is relevant to their nominated occupation.
Will I get residency?
You can apply after 3 years for residency. You must meet strict rules to succeed in the application.
Why do I need a business broker?
A professional Business Broker or Business Intermediary can help get the best price. A knowledgeable professional has access to what is going on in the market and they provide advice based on that knowledge. If your pricing too high, most potential buyers will not even inquire about it because if they don’t have enough money for investment then there’s no point in wasting their time with negotiations when it just isn’t possible at this current moment.
The benefits of using a professional are many: They ensure all qualified buyers by qualifying them beforehand so as to deter any unqualified buyer from taking away valuable resources otherwise spent dealing with an unsuitable prospect and create opportunities for sellers who may be hesitant due to inexperience.
What does a business broker do?
A business broker will assist a purchaser find and complete the buying of a business. He or she will take care of the legal aspects and the paperwork. Not to mention consult during the search and negotiations. Lastly, the broker will aim for best price to buy or sell.
What does a business broker charge?
A business broker will charge a fee in the region of 8 to 12 %. A broker will need to know the details of the proposed engagement and the complexities wherein before a more detailed cost can be calculated.
Do I need a business broker to buy a business?
The purchase of business is a complex and arduous journey. A business broker will take care of all the legal aspects and ensure and fully compliant completion on the handover.
How do I choose a business broker?
Check the track record of the company or the brokers operating for the company. The broker’s list-to-sell ratio is next and the reviews from past clients. Then ask the details of the procedure and explanations of the quoted purchase price.
What is rule of thumb for valuing a business?
The majority of businesses are valued based on the return on investment. The financials, in most cases provide the majority of buyers with enough information to make a decision about the stability of the business earnings.
Buyers in the market place typically pay a multiple of those earnings depending on a number of factors including the location of the business, type of business, years in business and the structure of the business.
To get a better understanding of what your business is worth contact Marc today where he will be more than happy to provide with a free confidential appraisal of your business.
Who are the best business brokers?
There are many factors to consider when choosing a broker for selling your business. When looking at potential brokers, you should first research their credentials and track record with previous clients. A good broker will listen to what is important for the client’s situation in order of importance while also providing some guidance on next steps such as networking or marketing tactics that may be useful (depending on how much help they provide). Always remember that confidentiality is key so make sure it is written into any contract before signing anything!
