It’s been an exciting month for Vision Brokers & Advisors as August marks our first birthday!
We especially would like to thank all our sellers, referrers, buyers and staff who have supported VBA through this incredible first year.
We are extremely pleased to say that with your help, we have met every milestone we set out to achieve so far.
So, a huge heartfelt thank you to all and... Happy Birthday, VBA!!!
As you may know, our motto is to transcend the standards of the business broking industry. We know there is still a lot do, and we are putting the final touches on our concrete slab of foundation.
The foundation of a business sale is a clear process, which is why we have achieved a 95% conversion rate once an offer has been accepted. Our aim is that by blending process with technology, we are able to optimise the experience for both seller and buyer, thus, transcending the standards of our industry.
Often a business sale can have some incredible time-sensitive moments. We have now introduced an auto SMS feature that can notify a seller, buyer, accountant or lawyer that they have an email, missed call or important matter to attend to.
We have only just rolled this out and tested this on buyer enquiries in the last 2 weeks, and immediately our conversion rates from general buyer enquiries to qualified enquiries have increased by over 25%. This is a massive result worthy of news in our view.
Normally a data room function is set up for large business transactions of $10M+, because quite literally there is too much data to manage manually. We believe there is a huge benefit in using a data room for transactions under $10M.
A data room is key for not just storing sensitive information securely, but most importantly managing the order of disclosure that relevant parties receive such information. It is essential for the protection of the seller and buyer that information is disclosed appropriately as it can be terribly damaging if it ends up it the wrong hands.
LEAD GENERATION SPECIALIST
We have now hired, trained and deployed a lead generation specialist to ensure that we receive an abundance of quality businesses to sell. Some of the quality businesses that we are working with now and which are all going through our business review process could be ready to take to market over the next 3 months:
Coffee Roaster Sydney $6M
Commercial shop fitting and design business Sydney circa $600k
Coffee Roaster Regional NSW and freehold circa $2M
George Street CBD retail franchise circa $700k
Gaming and Poker Machine Service circa $1M
East coast trucking and transport company circa $7M
Gluten-free cake manufacturing Sydney circa $400k
If any of these sound like they might suit you, please register your interest by sending an email to email@example.com. It is amazing what can happen off-market, and genuine interest can inspire sellers to take action before their business hits the open market.
THE IMPORTANCE OF 20% NET PROFIT
We’ve been a little silent on the social front the last couple of months, as we are putting our final touches on our content which we will launch soon.
There is one key metric which in our view can be the most important driver when assessing business value. The percentage of adjusted net profit to revenue. If you are looking at a business, ask this one simple question. Is the net profit a minimum of 20%? The reason we feel this is an important minimum threshold is that this directly transfers to risk.
For example, if the business has a turnover of $2M, and $200k net profit (10%), whilst the turnover is great (and some will be very excited by this), the business in our view would be considered high risk, because there is little room for error. We would rather see the same net profit with a turnover of $1M. Even though the turnover is lower, this represents substantially more value in our book.
A sale of a business can be a trigger event for a lot of things to go wrong, especially if the owner is a key part of the business.
A net profit of a minimum of 20% will give you security and confidence that the business should be able to handle a transfer of ownership.
We aren’t right all the time – just most of the time – some of our hot opportunities in the past have made buyers very well off indeed.
So make sure you get in NOW. Call us, email us, click on the button below, whatever you need to do NOW to register your interest in these opportunities.
MASTER FRANCHISE LICENSE NOW $5.4M
We advertised this business last newsletter, where the price was reduced to $5.4M. Our clients have now instructed that they have a minimum price in mind that is substantially lower than the advertised price above. Enquire today to find out what this price is – we guarantee – it is substantial, and that it will be worth your while.
Plus this business is operating well above the 20% net profit threshold.
We think, looking back over our careers, especially the last 5 years, this may just nudge over the line as the best commercial opportunity for sale we have seen.
15+ restaurants across Australia
Each restaurant is licensed and fully-managed
Average remaining lease terms of 10 years +
Overseeing both franchise stores and company run venues
Average franchise tenure exceeds 11 years
We feel this is a great opportunity to acquire group revenue in excess of $14M.
2 PRODUCTS RETAIL BUSINESS NOW $465K
This is a very rare opportunity to secure perhaps the simplest food retail business we have ever come across.
1 Location, highly scalable business model
2 Products. That’s it!!!
Screaming for an owner with multistore vision
Trademarked brand and fantastic recipes
Minimal labour requirements 1 staff is required for around 30% of operating hours
Average Ebitda of $208K over last 3 financial years
Store size an incredible 7sqm
And of course, this business is operating well above the 20% net profit threshold.
We have a lot of transactions going on at the moment, with around $5.5M scheduled to settle in the next month. If you are thinking of selling or would like a business reviewed as a seller or buyer, speak to us about your first steps in achieving a successful sale.
*Businesses with Revenue in excess of $1M qualify for a free business review.
BLOG - 3 THINGS TO PREPARE
WHEN YOU START LOOKING FOR A BUSINESS
Here are 3 simple things that you can prepare to ensure that when that right business comes along, you can move quickly and be a successful buyer. Read the blog here.
From our small and dedicated team at VBA, thank you for reading, and happy buying and selling!
Daniel Kogan & Dan Levitus
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.