5 Steps to Sell Your Business In Brisbane (2021)

Selling your hard-earned business is difficult enough, especially in these uncertain post-COVID times. You may be retiring or moving on to another venture. Either way, you’ll want the best price possible. You’ll want the maximum sale price that reflects both the value of your business, the hard work and the equity you have poured into it. This article will guide you through the basic early steps to sell your business for a price both you the vendor and the purchaser are happy with. Let’s get investigating.

Determine What your Business is Worth

To determine the value of your business, it is all about multiples and size. The multiples depend on the size of the business. Small businesses (under $3M) are generally valued at 2 to 3 times the profit. A business over 3 million will sell for 3 to 5 times the profit. A business over 20 million will go for 5 to 10 times the profit. Saying that your business is worth what the market will pay. The buyer determines that.

Preparation Preparation Preparation

As with all things, preparation is KEY. You as the vendor will need to consult your accountant. You will need to do this to ensure accuracy in the financials. Without accurate information, the buyer may well rescind any offers or just walk away at the beginning. As a business is valued on profit so all the figures relating to profit and of course loss must be presented in a complete and understandable manner. This is called an ‘adjusted profit and loss statement.’

Work with a Broker

Using a business sales broker will lubricate all factors of the sale. A broker knows the area and industry your business is in and will do the due diligence to find out all the facts. It is known that a business selling through a broker, sells for a higher price than those going alone. Strategy and knowledge are great elements to add to the proceedings.

Executive Summary

This is not fancy speak for paperwork. An executive summary is a precise document that details the best parts of the business and the points that will make the business attractive. For example…

• The overall operations
• The haloed financial data
• Business mission or objective
• The management or running of the business
• The products and or services the business renders
• Any industry advantage over the competition

All these will ensure the highest price offering for the business if they are present and correct.

Let the World Know

After you have completed all the necessary steps to get this far, you will need to market the business to the right people. A strategy to zoom in on the best possibilities is key here.
You will get offers and negotiations from different sources. Find one that matches the expectations of price and other reasons. Can the new owner run a business? If not, the staff will be left with no job and all your hard work runs down the drain.

Due Diligence Time

Give the buyer up to 4 months to perform all the checks needed to ensure your business is what you say it is. Then when all is said and done CLOSE THE SALE and celebrate. Then the handover begins.

Bonus FACT – EBIDTA

Depending on how well the business is doing. Pricing your business is hard. You will either sell based on the value of assets or earnings. If your business is smashing it, then you will learn some new letters; EBIDTA. Earnings before interest, taxes, depreciation, and amortisation. This is the calculation used to work out the value.

Wrapping it up:

Selling your business is a big decision and an emotional process. Make sure you get the maximum sale price for your company by following these steps to help guide you through the selling process. These early steps will help ensure that both parties are happy with the transaction, for more information or to have a chat about your options contact Marc Phillips.

5 Steps to Sell Your Business In Brisbane (2021)

Marc Phillips

Sydney born, having spent six years serving the community as a New South Wales Police Officer before deciding to relocate to the UK where he pursued his passion for sales, the financial markets and the real estate industry.

15 years as a licensed agent, ten of those years in fast-paced markets of the USA and the UK, Marc is an expert in business brokerage.

Business owners are invited to consider Marc when seeking a business to buy or sell in Queensland with local knowledge in the South East Queensland market including Brisbane, Gold Coast, the Sunshine Coast and the Darling Downs.

Local knowledge and surgical negotiation skills mean a keen eye on every detail. Marc has a profound knowledge of legal frameworks in all aspects of business acquisition and sales process.