Happy Easter Every Bunny!
Three months into 2018 and only three months left of this financial year. Where does the time go?!?!
With many happy vendors and buyers in 2018 so far, a strong market and many new exciting business opportunities now coming on board as promised, we are extremely eager to see what lays ahead for you over the next few months. We’re also extremely pleased with the results achieved for all parties on sales concluded so far this year.
Why April is the perfect time to make an offer on a business?
With the end of financial year fast approaching, vendors who want to close a deal before 31 June will be more susceptible to considering reduced sale prices. For buyers, it is beneficial to buy a business in this financial year so you can begin tracking your turnover from day one of the 2019 FY which will assist greatly with budgets, forecasts and so forth. There are also great tax benefits to buying on this side of the financial year which we recommend speaking to your accountant about. They’re always the best people to keep you informed with ATO news, tax incentives and legislation changes.
Always consider your exit strategy
When buying a business and learning the ropes of the operation, it is easy to get worked up in all the excitement, new lifestyle, new challenges and new experiences. It is vital however, from the moment you step into the business you begin taking steps towards your end result.
You might be thinking that the business you just bought is going to make you millions and you could never see yourself parting ways with it, and you might be right. Alternatively, you might see this business as just one of many revenue generating opportunities to add to your portfolio, or you might just want to just build it up and sell for a profit. Whatever the reason, whatever the long-term plan, always prepare yourself with an exit strategy. You never know what will change in your life or what might transpire commercially. Just to be clear, we are not suggesting that you need to prepare for a ‘Doomsday’ situation. We’re simply suggesting that from day one, you stay on top of your accounts, keep records of trading history regularly and engage a good accountant / bookkeeper, even if you can’t fathom ever selling your business.
In reference to the first subheading above, if or when you decide to sell, having at the very least one full financial year of trade will make the sale that every bit easier. By having transparent financial records available and assuming the turnover/profits were maintained or increased during your tenure then the chances of selling for a premium are far greater than not having any records at all or having poor ones on hand. The best thing to think about is, what did you receive when doing your due diligence, what did you like, what didn’t you like and what would you have liked to see.
Wishing you and your loved ones a happy and safe Easter break.
As the Broker, we don’t only sell businesses. We are here to support and guide you. We are here to achieve a positive result for both parties and are always happy to assist with exit strategy advisory work, operational consultancy or simply be someone you can just bounce ideas off. We want you to succeed and we want to be there alongside of you as it happens.
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.