SEPTEMBER 2019 MARKET UPDATE



This month we spent a day perusing the incredible talent and offerings at the Fine Food Show in Sydney. We were amazed at all the new products and level of innovation that is coming up in the food and beverage manufacturing/supply space within Australia. If the show was anything to go by, Australian food and beverage manufacturing looks to have a very promising future ahead.

Ultimately, any success for food and beverage manufacturing/supply businesses are driven by the consumer, and we are so lucky to have such sophisticated consumers in Australia as we absolutely love our quality food and drinks.

This show can be a great indication of where businesses are heading and the types of food and beverage businesses that could be great investments.



We noticed compared to last year a huge increase to more sustainable and alternative products. A few that we felt took center stage were:

1. Hemp 2. Plant-based foods 3. Gut-health products


You have most likely heard plenty of “noise” in the media around these products lately and we agree that they are close to mainstream classification, which makes these types of businesses strong investments in today's market.

In fact, we have already begun looking for willing Vendors in these areas.

Another interesting product we observed in a completely different space was one that took an average cut of steak and supercharged it by injecting fat. The purpose was to make it appear and cook like a grade 9 wagyu cut, at a fraction of the cost. Although an interesting concept, we’re still trying to make our mind up about the taste and longevity of this one.

If you have or know anyone that has hemp or plant-based food business, we would love to offer them a free comprehensive review of their business. Email us at info@vbaaustralia.com.au




Buying a business is a challenging process, that is fraught with ups and downs. In our experience, there are 2 main reasons why a buyer won’t buy a business.

1. The Information 2. The Price

Let’s drill down on these a little because they are connected. Firstly, it’s important to acknowledge that as a buyer, you will naturally approach business with immense caution. This sense of caution can play a part in preventing you from looking at a business objectively.

We didn’t say it’s the entire reason! Though it can often help to approach the business with an open mind. It is likely that you will make your mind up within 10 mins of speaking to the Broker and/or reviewing information.


Most sellers just want a fair market price for their business, the problem is agreeing on what the fair market value is.

THE INFORMATION

As a buyer, you are eager to sink your teeth into financial accounts and operational information. It’s natural, it’s expected, and you can’t make an offer without doing so, so reviewing this information from the outset is important to you. On the other hand, a lot of Vendors need to feel a little comfortable with you before they share sensitive information. They want to get a sense that you are genuine, and not going to waste their time. The first step is for you to both find common ground and realise that your interests are perfectly aligned. One of you is a serious buyer, one is a serious seller. If you can mutually acknowledge this early on, you will find information can flow comfortably.


THE PRICE

If the business is priced way too high for your liking, take some time to justify where your comfort level is in terms of price, and why. This is incredibly valuable information for a Vendor to know. Most buyers will think “over-priced” and walk away, and often miss out on great opportunities. Vendors might not understand why their business is not selling. You will be surprised how much progress can be made when you open a sensible dialogue of your opinion of the fair price, that you can justify.

Last week we asked a buyer to explain his incredibly low perspective on a fair price, and his answer was “I don’t want to answer that but if the Vendor doesn’t sell let me know.”

Yeah, we’ll be sure to call you back – never!




We are currently in discussion with the following businesses. None of these businesses are listed for sale yet, and these Vendors are thinking of selling their business shortly:

1. Coffee Roaster Sydney 4.5 tonne per week $6M 2. Coffee Roaster Sydney circa 1 tonne per week $1.5M 3. Coffee Roaster Sydney circa 400kg per week circa $250k 4. Commercial shopfitting and design business Sydney circa $700k 5. Coffee Roaster Regional NSW and freehold circa $2M 6. George Street CBD retail franchise circa $500k 7. Gaming and Poker Machine Service circa $1M 8. East coast trucking and transport company circa $7M 9. Gluten-free cake manufacturing Sydney circa $170k 10. Household consumables distribution circa $1M 11. Steel fabrication circa $600k 12. Italian restaurant and past manufacturing circa $700k 13. Food manufacturing Woolworths products circa $4M

If any of these sound like they might suit you, please register your interest by sending an email to info@vbaaustralia.com.au. It is amazing what can happen off-market, and genuine interest can inspire sellers to take action before their business hits the open market.



VIEW OUR LIST OF BUSINESSES HERE


If you haven’t visited our website in a while, check out our current listings by clicking on the button above.

There are a number of businesses that we believe represent fair value in the market today. Here are some of the best 4 retail businesses we are eager to sell, all of which have reasonable upside and Vendors willing to negotiate. We will help you achieve a successful purchase at a fair price.

Click on the photo for more information.







Dear Sellers and Buyers,

RECORD MONTH

Thank you again for your support, we have already set a record month so far in September with $5M worth of businesses now settled this month, and we still have 2 settlements to come in before months end!

NEW PRODUCT TESTING

We are also commencing market testing on a new product, which is designed for businesses with values lower than $500k. If you have or know any businesses that:

✓ Are looking to sell and you believe to be worth less than $500k ✓ Wants their business sold without any professional fees payable ✓ Would like full access and support by a VBA broker

We think this product can be a game-changer for smaller businesses that are looking to sell on a WIWO basis, and we would like to fine-tune the product with some market testing.

LOOKING FOR BROKERS

VBA is now in the final stages of deploying our new and improved operating processes, which means we are now ready for expansion. There have been numerous Brokers contact us in the last 12 months from various firms which we have strategically turned away. Now that we are ready for the next stage of our journey, we would love to open the conversation again. For early discussions on joining the VBA team, send us an email at info@vbaaustralia.com.au. Remember, must have a minimum of 3 years Brokerage experience and be ready to unlearn most of what you’ve been taught in the past!

Our motto – “to transcend the standards of the business broking industry.”

Kind Regards, 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.



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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.

https://www.vbaaustralia.com.au/businesses-for-sale-vision-brokers


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30 + years experience 

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