You’ve decided to sell your business, but this terrain is unfamiliar. What is involved? Who should you contact? What does the process entail? In a business sale, there are many factors to consider, so we decided to outline the process, allowing you to begin your business sale journey with a better understanding of the steps involved.

1.    Meet with your Broker

Finding the right Broker is key. You want to select a professional with both industry experience and a friendly demeanour, as your Broker will be the point of call for all potential buyers. At Core Business Brokers, with a combined industry experience of 68 years, we have represented sellers from a variety of industries. We pride ourselves on our professional, yet down-to-earth nature, being an honest and reliable guide, leading you through your sale process. One of the Principals is a qualified Accountant who can steer you through the numbers.

2.    Business Appraisal

Your Core Business Broker will then appraise your business, looking at the business’ financial history, the current market conditions alongside other variables such as a SWOT analysis that will affect the current market price. It is important to remember that many factors affect the appraisal process and accepting a realistic, achievable sale price will increase the probability of a successful sale. We will tell you what you need to know – not just what you want to hear.

3.    Organise Your Financial Statements

Ask your Accountant to organise your financial information, making sure relevant financial statements are available and accurate. When you meet with your Accountant it is recommended that you discuss any tax implications associated with the sale of your business. It is also important to ensure that your exit strategy is both up-to-date and relevant to allow the transition process to be as smooth as possible post-sale.

4.    Advertising and Enquiries

Your Core Business Broker will advertise your business on all relevant platforms that are best suited to your industry. Alongside this, they will share your business with their extensive network of buyers and contacts, in order to find the best possible buyer. It is important to note that not all business sales are the same, and therefore advertising options vary for each business. Core Business Brokers will always maintain the level of confidentiality required to ensure your business is advertised discreetly if necessary. Encouragingly, we sell a good number of businesses through our expanding database of buyers.

5.    Offer and Negotiation

Interested parties will then submit an offer for your business and any negotiation will take place before the offer is accepted by you, the seller.

6.    Potential MOU (Memorandum of Understanding)

At this point, a Memorandum Of Understanding (MOU) may be utilised. Although not mandatory, a MOU outlines the agreed terms and conditions. The MOU acts as an assistant for the contract of sale to be drafted more efficiently. This can lower costs for both the buyer and seller, as it lessens the ‘back and forth’ between parties when the contract is being drawn up, thus reducing legal costs.

7.    Due Diligence

The buyer will then have an agreed time period to complete their due diligence. During this time they will review particular financial statements and other important information to ensure that the information provided by the seller is accurate, and to also allow any concerns to be addressed before the settlement date.

8.    Contract Preparation and Exchange

Both parties’ Solicitors are then involved in the process, preparing the sale contract and going back and forth between the buyer and seller until the contract is signed. At the time of signing, a deposit is paid by the buyer, which is held in trust until settlement takes place.

9.    Settlement

Once an agreed period has passed, all issues have been addressed and both parties are happy to proceed, settlement takes place. An up-to-date stock take occurs, the buyer pays the balance of the purchase price to the seller and the seller transfers the business and any associated business assets into the buyer’s name.

For a more in-depth explanation of the process, or to learn how your specific sale journey will unfold, contact Core Business Brokers today, on (02) 9413 2977. One of our professional and knowledgeable team will be more than happy to discuss your options and answer any questions you may have.

Planning your exit strategy, otherwise referred to as your ‘succession plan’ can seem like a daunting task. However, it is an important factor that should be planned well, before the need arises. Think of an exit strategy like any other important planning task – you have a big event on and need a specific outfit, if you leave the shopping until the last minute, it is likely that you will not find what you need before the big day. With business, the same rule applies. Planning correctly and giving yourself enough time to do so, will ensure a smooth, effective and successful transition when the time comes.

What do you include in an ‘exit strategy’?

• Time Frame: How long until your exit strategy is likely to take place as well and how long it will take to implement the exit strategy itself
• Successor: The details of your successor, if known
• Restrictions: Any legal, financial or other restrictions that may come into play
• Ownership: Whether the succession is part or full
• Financial considerations: Fees, tax, post-exit income options and any other components that need to be assessed prior to implementation
• Staff: Identifying any changes required prior to, during or post-transition
• Legal requirements: Any legal considerations alongside risk management solutions

Whether you are planning to sell your business or planning to hand over the reins to a family member or employee, an exit strategy outlines specific processes which when followed, create a seamless transition. An exit strategy ensures that the business continues to operate in the most successful manner whilst ownership transfers; maintaining the level of sales, providing the same services and following protocol which allow the operation to continue as normal.

Your exit strategy should identify ways to make your role, as the owner, less hands on. This will allow the transition to be gradual, whilst also allowing the business time to adjust and become less reliant on the current owner. This is an important aspect of an exit strategy, as it alleviates risk in the eyes of the successor, knowing that the business can function successfully without the previous owner present.

We recommend seeking legal advice when planning your exit strategy. This can rule out potential disputes and ensure that all legal requirements are addressed.

I’ve created my exit strategy, what now?

Review it annually. Think of your exit strategy like your will. As life changes and situations arise, modifications will need to be made. The creation of your exit strategy is a necessary and beneficial planning task, however, it will need to be altered and adjusted as the years go by.

Core Business Brokers have countless years of Business Broking experience, which means we understand that no two businesses are the same. When it comes to selling, we will treat your business like a unique operation, because it is. The Core Business Broker you deal with initially will see you through to the end of your sale, answering your questions and assisting throughout your sale journey.

If you are planning to exit your business, contact Core Business Brokers today. We will be more than happy to discuss your options and guide you through your business Sale. Contact us on (02) 9413 2977 to chat to one of our friendly and knowledgeable team.

All members of our buyers database are the first to hear about any new business for sale.

Once a new business is listed for sale  Core Business Brokers immediately emails to our exclusive business buyers database alerting each member of the new opportunity.

Stay in front of the market join our expanding list of business buyers

Simply click on CORE NEWS below on our home page or email [email protected] with your name, email address and mobile number. Please indicate whether you are interested in                     Food or Non Food businesses or Both. Thank you.

Making an offer for a business can be a daunting process. Please read the below on how to make an offer and what you need to keep in mind before making the offer.

Before Making an Offer

The buyer should make sure that their finance is in place before an offer is made.

When buying a business, a buyer needs to be aware of the other costs involved such as Accountancy, legal fees and in most cases a Bank guarantee will be required by the Landlord.

Landlords – Things to keep in mind

In 2015 Landlords are being ever so protective of their properties and when a tenant comes to them to say that they wish to sell their business, most are taken back as they have been happy with that tenant for perhaps many years as they have always paid their rent on time and have run a good business with no problems. Now they have to offer a lease to a new buyer who they do not know.

Landlords will want to know:

• Is the buyer capable of buying this or any business?
• Is the buyer able to provide business and personal references to the landlord and a statement of their assets and liabilities to show their ability to be able to pay the rent?
• Does the buyer have the experience needed to run the business?
• An astute buyer would provide a business plan to the landlord to show them how they intend to run the business and improve it.

How to Make an Offer

Any offer should be made to the agent in writing, email is sufficient or fax. Verbal offers are accepted however for the business to be taken off the market a written offer is required.

When making an offer please ensure that you clearly describe what conditions you want. Please note Finance is not an agreed condition. For example, you may need a new lease or an assignment of the current lease, you may require training, you may need a delayed settlement.

A buyer upon acceptance of their offer should be ready to put down a deposit of up 10% of the agreed purchase price for the business to be withdrawn from sale. This deposit is held in TRUST and a Trust account receipt will be provided on cleared funds. This amount is fully refundable up until contracts are exchanged.

For more information on buying a business please click here.

Core Business Brokers has been approached by an Australia wide company looking at growing by means of acquisitions. They  supply consumables & offer equipment rental to the construction & related industries, have a footprint in NSW/ACT/QLD/VIC & consolidated revenues of $ 120mil & 180 staff. They have asked us to discretely seek and locate suitable opportunities.

If your looking at selling your company that is in the following Industries then please contact Peter Golding for an informal chat on 02 9413 2977 or my mobile 04 14 24 28 30 or email at [email protected]

1. Safety products
2. Safety or road signage
3. First aid supplies
4. Drainage products
5. Work wear
6. Construction supplies
7. Cleaning consumables to construction

The preferred target business would have the following criteria.

• Revenues of $ 3 -20 mil pa.
• B2B (not B2C)
• Direct to end-user ( preference is minimise sales through resellers/distributors)
• Supplying construction/utilities/infrastructure/industrial markets (not selling to white collar people)
• Preference to supply a fragmented customer base
• Boxed goods

JUNE 21 2016

Attention all NSW Business Buyers

The office of state revenue announced that duty on the transfer of business assets  over ‘business assets’ (other than land) will be abolished from 1 July 2016.

Thinking about listing your Business for Sale? Here is a list of our recently sold businesses. Core Business Brokers Sydney are looking for more quality businesses to sell. If you would like to sell your business please contact Core Business Brokers today.

1. Boarding House-East.
2. Import Distribution Commercial Furniture- West.
3. Education Examination Management-Sydney.
4. Café / Restaurant-Newtown.
5. Café -Mosman.
6. Bridal Shop-East.
7. Café Franchise-Chatswood.
8. Bar / Restaurant -Newtown.

We have been approached by a client who is seriously looking for a Sydney based business in the Aged Care Industry.

Our client is keen on a company that specialises in the manufacture / distribution of consumables used in Aged care facilities.
Products such as Antibacterial Gels, Dispensers, Cloths, Swab sticks, Dry Wipes, IV Therapy, Surface cleaning wipes, Chemicals etc.

If your business is in a similar field then please contact Roy or Peter for a totally confidential and private discussion on 02 9413 2977.

Happy New Year to all our buyers and sellers.

2016 promises to be a busy year at Core Business Brokers.

If you are contemplating the possibility of selling your business and would like to discuss how the process works and what fees you are up for then please give us a call or reply to us by email on [email protected]

Perhaps you may like to click on our Testimonials to see what other business owners have said about us.