AN INTERVIEW WITH PETER GOLDING AND ROY LEVY
Getting to know your Business Broker is an important part of your decision-making process when looking to buy a business or beginning your sale journey. Here at Core Business Brokers, we pride ourselves on our customer relationships, professionalism and the importance we place on trust, honesty and transparency.
In a recent interview, both Roy and Peter sat down to discuss what makes them tick, allowing us to see the men behind the business.
What made you become a Business Broker?
Peter: I entered this profession in 1998 after selling my business of 16 years. Through my own personal experiences selling my business, I dealt briefly with other Brokers and saw the need for a Business Broker who offered service and genuine feedback to their clients which in my opinion was severely lacking in the industry at the time.
Roy: As an Accountant, I was involved in management consultancy where I assisted businesses to grow through marketing strategies and cash flow management. We then listed our company on the stock exchange and engaged in mergers and acquisitions where we listed 11 companies on the stock exchange. After emigrating to Australia in 1996, going into business broking was a natural progression for me — and it also gave me insight into how businesses differed in Australia.
How many years’ experience do you have in the industry?
Peter: 21 years in the Business Broking industry.
Roy: Approximately 14 years in South Africa and 23 years here in Australia
What makes Core Business Brokers different from other Business Broking firms?
Peter: Today many business owners find out the hard way that there is a difference between a selling agent and a listing agent. Unfortunately, there a number of Brokers that take an upfront fee and are not sighted again. We offer genuine market advice, provide comprehensive information on the business to our buyers in order for them to make an informed decision; and provide our vendors with regular updates on what is being said about their business out there in the market.
Roy: We are a boutique firm and the owners are involved in the businesses we list. We have over 78 years’ of experience amongst the Brokers and thus anyone wishing to sell their business can be confident that they will have a well-experienced and professional Broker working for them.
What advice would you give to current business owners who want to achieve the best possible sale price for their business?
Peter: Make sure the business is ready for sale. Are the financials and other business information up-to-date and presentable? Some businesses rely almost entirely on the owner’s daily management. In this case, it is advisable for those types of vendors to try and see what staff members are capable within their organisation to step up to lessen this risk for a new buyer.
Roy: If possible, prepare your business for sale from day 1. Critically assess the business by wearing a buyer’s hat and build the business to be able to operate without the owner’s continual input. Assess the SWOT analysis (strengths, weaknesses, opportunities & threats) and work to reduce any risks that a buyer may see.
In your opinion, what are the biggest factors that influence a business sale?
Peter: There are many factors that can influence a business sale. Perhaps the most important is not having all the information available when required. Audited financials if not available can hugely affect a buyer’s trust and interest. Security of tenure is also important for a buyer to have interest in the business purchase. Unfortunately, owner’s expectations and the current market are frequently not on the same page.
Roy: Historical performance that can be proven, quality staff to run the business and good cash management to ensure positive cash flow. Regular and contracted income will be a huge positive
What should buyers look for when selecting a business to purchase?
Peter: Key questions to ask yourself as a buyer should include: Is my finance in place for the business in question? Can I afford to buy this business? Do I have experience in this Industry?
Roy: Experience in the industry of the business and the risks associated with the business itself and the industry in which it operates.
Roy, If you weren’t a Business Broker, what would you be doing?
Travelling! I would pack my bags and take a big holiday – I enjoy seeing new things and exploring new places.
Peter, What do you enjoy in your down time?
I love spending quality time with my family. I am a keen golfer, enjoy exercise, carpentry and gardening.
What do you both enjoy most about Business Broking?
Peter: I enjoy dealing with all different types of business opportunities. Some are very different and most interesting.
Roy: I enjoy the satisfaction of a ‘win-win-win’ at the conclusion of the sale. I.e. The seller achieves an exit, the buyer purchases a good business and I as the Broker earn my commission; everyone is happy.
What advice do you have for aspiring Business Brokers who are entering the industry?
Peter: Most Brokers don’t offer genuine customer service. In my opinion, most vendors want to feel respected and valued. Taking the time to provide regular updates and feedback to your clients is greatly appreciated.
Roy: It takes a while to get a flow of business listings, which can be financially taxing at times. Never take your foot off the pedal, as you need a constant flow of new listings whilst working through the marketing, negotiations and contract of existing deals.
Like to know more about our friendly team? Or simply have a question about your business sale journey? Contact Core Business Brokers today, on (02) 9413 2977. Our knowledgeable team are always happy to answer your calls and queries.