MESSAGE FROM THE PARTNERS
This week we’ve felt a big change in the market, even despite the Treasurer’s announcement yesterday (which we all saw coming), our brokers have seen offers roll in for many of our businesses that have proven to be “COVID proof” and we envision this trend to continue moving forward.
We are spending more time with buyers than ever before, supporting them through their journey from due diligence to offer stage which has reignited our core passion as brokers, helping people get into their dream business while facilitating a win-win sale for both parties.
To you and the wider SME community, please know that we are here to help guide and support you in making the best commercial decisions, whether looking to buy or sell through us or not, it does not matter, we just want to see people succeed in business.
Please give us a call at any time, whether it be for interest in buying or selling, or just to ask our advice on a prospective business plan or acquisition you are considering, we’re always here to help.
The VBA Team
KEY PRINCIPLES IN ADDRESSING THE FIRST STAGE
OF A BUSINESS SALE PROCESS
Qualifying buyers in our humble view sets the stage for any successful sale. It is the absolute first step that must not be compromised. Before any business information is shared with a buyer, one should first determine if the buyer is suitable and capable.
1. Confirm that a prospective buyer is in a financial position to acquire the business
This is also to protect the buyer. One does not want to see the buyer undercapitalised and struggling from the outset. Many of our clients use the word “legacy” in their business sale wish list. They want the buyer to be successful.
Find out how the buyer intends on funding the business? Are personal assets required as security? Does the buyer have enough working capital in context with the business?
2. The next litmus test is regarding the commercial ability
Every case is different, and it can be difficult to tell in the first instance. It is a powerful exercise to ask the buyer some questions.
What sort of strengths does the buyer have? Is the business lacking in those areas? Is the buyer realistic about the nature of work, and the work is enjoyable? What prior commercial experience does the buyer have?
An example of this gone wrong was at the end of the last GFC. Too many white-collar workers bought cafes... Read more
THIS WEEK'S INTERVIEW
Managing Finance, Debt and Downside Risk
In this short video, George Sabados speaks to David Novac
Listen as they discuss finance management, eliminating debt,
and how understanding downside risk can help you to ensure
financial stability for your business during uncertain times.
Our mission is to transcend the standards of the business broker industry, and this means so much more than just selling businesses.
We would love for you to be part of our community.
From all of us at Vision Broker and Advisors, we really look forward to working with you.
Good luck, and make sure you have a look at our business for sale.