21 Jan How a Business Broker can help you
In today’s ever changing and evolving world we all know that the only thing that is guaranteed is “change”. In the macro environment the world certainly isn’t what it was just 5 years ago. In fact, if you looked back just 2 years you would be hard pressed to see anything that has not changed.
A little closer to home – our lives, where we work and how things revolve around us on a day to day basis also continues to transform. One thing for sure – business is keeping pace with what is happening and our micro-environment is being affected in so many ways.
What applied a few years ago somehow no longer seems to have the same weighting it did back then. There are new priorities and what may have been all important in the past somehow no longer applies to the same degree it did.
Selling a business is a science. It takes careful consideration and planning, to sell a business, so that the Owner gets the best reward for all their years of hard work. The other party – the Buyer wants to invest in a good business at a fair price. Both these considerations have to be met in order that the sale and purchase be viewed as a “good deal”.
Like any good business decision – one doesn’t wake up and decide “today I think I will sell my business…” Similar to any successful business transaction, the sale needs to be planned, thought through and executed professionally. If you are going to conclude your life’s work surely you want to have the best outcome possible.
This takes preparation and careful consideration. There are so many factors involved in selling a business – if all the dots are not connected it will cost the seller a lot, sometimes stripping off unnecessary profit. What a waste after all the hard work to lose money because of poor planning and preparation.
I realise this may sound somewhat negative but the reality is a number of business are sold under value because the owner failed to give sufficient thought to the sale. The more you prepare the more you will make – doesn’t this sound like normal business to you?
A Business Broker will be able to assist you through the process – from the planning stage through to the final sale. The important thing from the Owner’s perspective – you will get to work with your Business Broker well before coming to the final point of sale. At that stage you will know how they work, what they can do for you and how best to work as a team so that you get the desired result. Almost like a “try before you buy scenario”.
As a Business Broker – it is important for me to engage with business professionals to achieve their desired outcomes for both their personal and business goals. My objective is to deliver the highest standard of performance I can. It is really important for me to work with my clients on the basis of a strong relationship based on integrity, professionalism and good communication.
A Broker will be able to guide you through the items that should be dealt with in your planning. Just some of the initial points to consider are;
- Beginning with what sector the business is in –
- Market and sector current trend analysis.
- Where does it fit in the industry?
- What is its position in its market and what makes the business unique?
- Does the business hold a leading / middle or low position in the industry?
- Compared to its competitors how does it rate?
- How does the business present itself in the market? What would the buyer see?
- In today’s world how does the website, social media or marketing brochures portray the business?
- Looking at the business from the road – does it have curb appeal?
- From the management to the sales staff and everyone in-between – what message do they portray to the public about the business?
These points only cover a brief look at what the business looks like. The real questions come when we have a look inside the business. Some of these questions are –
- Shareholder / Director Agreements / Structure
- Financials
- Stock reviews and valuations
- Business structure
- Departmental knowledge
- Systems and procedures
- Leases / hire purchases / other financial commitments
- Products and their performance / life cycle
- Business capacity
- Cash flow analysis
- Seasonality research
- Plant and equipment detail
- Warranty and guarantees
- Logistics
- Human resources
- Supply chain
- Customer detail
- Sustainability
A true Business Broker is a professional who can add a great deal to the sale of your business. It will take lots of preparation and work – but the result will be worth every effort made in executing the sale of your business correctly.
For an initial discussion of how I may assist you in this area please either call (09) 55 6021 / 0224 “live it” 5483 48 or send an email to [email protected].