Selling a business, like selling a property, is always an anxious and often stressful experience. The process can take a long time and will often end up with an outcome that falls well short of the owner/s expectation. Historically the industry in Australia has been fragmented, parochial and has earned a reputation that's not on the top of the list when it comes to integrity and professionalism. Advertising has also become a lucrative part of the industry and is often disguised as a full brokerage service.

Many questions are raised when you are considering whether to place you business on the market.

The most frequently asked question of any prospective vendor is "What is my business worth?" The easy answer is "Whatever a prospective buyer is willing to pay you for it."

It's not that easy, however, and whether you spend thousands of dollars getting impartial valuations from accountants and other valuation specialists or whether you work it out by using simple rules of thumb you will only ever be able to establish a range within which the final negotiations will take place.

But you have to start somewhere and that's where Dunross can give you their most sort after professional advice. Not only do we use standard methods for determining the value of your business we also spend considerable time in understanding your circumstances, what exactly you want to do, how quickly you want to do it, and what's happening in the market place in your industry.

Dunross's professional staff will spend time with you completing a comprehensive checklist of questions and/or conducting an in depth business diagnostic to gather the necessary information that will qualify the financial models we run with just the numbers. In that way we can advise you, not only on a financial basis, but also taking into consideration your personal needs and objectives.

In the US over eighty percent of all businesses sold above A$200,000 are sold with one-third or less down with the balance being financed by the vendor. This is known as vendor financing. Asking for half down will reduce the price by approx. twenty percent. The vendor who wants all cash will will reduce their price by as much as forty to sixty percent of the one-third down price. (source Business Brokers Network) The vendor who makes his business more attractive by offering vendor finance will sell his business much quicker than a vendor who wants all cash up front.

Firstly, most business agents no longer work on a commission only basis. The normal format is for a time based fee to cover the work involved in preparing and marketing the business for sale then a seperate success fee at the completion of the negotiations.

Once the market knows the business is for sale a lot of inquiries are generated for all sorts of reasons. Most of these will not be genuine and the process of qualification requires skills that can only be acquired through experience. Dunross has developed these skills as part of their professional training and will only present genuine buyers to their vendors. Initiating contact with possible interested parties is also a process that is difficult for owners.

Not everyone who has a business has gone through the experience of selling one. However, most have been involved in selling a property. There are a number of similarities and the ones which are similar relate to the ability to be objective during the negotiating stage. Dunross's team are trained in facilitation skills and will work together with both parties to secure an optimum outcome.

The second most frequently asked or thought about question is "Do I need help and advice in selling my business?"

Think about some of these points when answering this question.

If you want to sell your business people need to know its for sale. Once its out there on the market potential buyers need to be qualified and once a shortlist of buyers has been developed the process of negotiation needs to be facilitated.

Advertising your business can be easily done through traditional print media but this method can be expensive and nowadays is generally not considered the most effective way to market your business. Dunross has developed a state of the art website that focuses on business to business marketing. It's global and continuous. Our buyer data base is also a unique source for matching vendors.

Disclamer: The information provided by Dunross Business Services is for discussion purposes only. No representation is made as to the accuracy of the information supplied and prospective purchasers should establish by independent means to their own satisfaction that the information provided is substantially representative of the business activity.
As the information on this website has been prepared without considering your objectives, financial situation or needs, you should, before acting on the any information provided, consider its appropriateness to your circumstances. AFSL No. 247361
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