The end of the financial year in a business sale context tends to separate the quality businesses from the rest of the herd.
If you are selling, this is a great time to take steps to make sure that your business will stand out in the market in Q1 of 2020, or if you are buying, a great opportunity to measure which businesses cut the mustard.
We are referring to the significance of the 2019 draft financial accounts. Why? Financial accounts are the most important element of measuring the intrinsic value of a business.
The first thing a prudent business owner will be doing at the end of the financial year is their tax planning. Even though their company accounts may not be due for lodgement for another 9 months, a prudent business owner will prepare a set of draft accounts with their accountant. This exercise speaks volumes to the underlying quality of the business.
For businesses that have their 2019 draft annual financial statements ready by the end of July, their business will stand out in the marketplace, and those draft accounts will generate that extra sense of confidence a buyer is often searching for, in order to make an offer.
If you are buying a business, it is reasonable to ask for 2019 draft accounts by the 1st August 2019. If a business is able to provide these (and most won’t), this should be a HUGE green tick off your wish list. You should probably make an offer on that business!
Finally, we currently have around 50% of our stock currently under offer, and as you know, we only work with 10 businesses maximum per broker as we think this is the secret to selling businesses. Our doors are now open, looking for new quality businesses to take to market.
Factoring in some of the businesses we have in our pipeline that we’ve detailed below – we have 5 open spaces for new listings for Q1 of 2020. If you are thinking of selling, now is the time to get in touch with us.
Dan Levitus & Daniel Kogan
We aren’t right all the time – just most of the time! If we are right, we think there will be a truckload of interest in these businesses. So make sure you get in NOW. Call us, email us, whatever you need to do NOW to register your interest in these opportunities.
"IS THIS THE MOST UNIQUE AND PROSPEROUS OPPORTUNITY WE HAVE EVER SEEN?"
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.
Highest quality internationally recognised spring water source.
Water resources of 37,000,000 liters per year.
70 cents per litre gross profit (you do the math).
DA includes unlimited truck and transport access for finished product.
Recently valued at circa $7M.
Selling for $4M WIWO including freehold.
Enormous partnership breakdown.
"BUY LOW AND SELL HIGH!"
*** Make us an offer and we will take this offer to our client (hint hint) ***
The key to any successful business flip is buying low and making sure the fundamentals are in place so that you can build on the foundations and sell high. The market views the fundamentals as the lease, revenue, location, fixed assets
Lease: 15 years
Revenue: $1,800,000 PA EX GST
Location: On the beach baby
Fixed assets: Fit-out approx. $1M before depreciation and less than 3 years old
This fully managed hospitality group operated flagship is no longer desirable to our client. Often hospitality groups bite off a little too much, and they can’t justify continuing to stretch their resources. This is a very rare, profitable business and comes with our STRONG
encouragement to make any offer.
We feel that this is a rare, rip, flip opportunity and there should be plenty of profit to squeeze under new ownership. Please note strong experience is a must!
We’ve also listed some opportunities below that are currently in our pipeline. We expect to convert 50% of these into active listings by the end of August.
If you would be interested in any of these, let us know because this really helps motivate Vendor’s and it also creates a rare buying opportunity for you before the business hits the open market.
You would be surprised what can be achieved off-market- we always are!
✓ Trucking Transport Company East Coast Circa $5M
✓ Commercial Hospitality Supply, Shopfitting and Fabrication Circa $6M
✓ Coffee Roaster including Freehold Circa $2M - $2.2M
✓ Coffee Roaster Sydney Based Circa $6M - $6.4M
✓ Civil Engineering Consultant Circa $1.3M - $1.5M
THE DEAL ROOM INTERVIEWS VISION BROKERS AND ADVISORS' SENIOR PARTNER, DAN LEVITUS
In this podcast, Dan discusses his own experiences selling businesses and how most business owners get the timing of their business sale wrong.
DUE DILIGENCE AND 3 THINGS TO LOOK OUT FOR
THAT ARE OFTEN OVERLOOKED BY ACCCOUNTANTS
In this video, we explain why due diligence isn’t just about crunching numbers.
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.