How do I find and hire a broker, M&A advisor, or investment banker?
Deciding who you use as your broker can be the difference between being on the market for 3 years and 3 months. Getting a sale at $4.5M and $5M. A business brokers skillset is multifaceted. The broker must have a good understanding of business valuations, the market and contracts. The role of the broker is to maximise the outcome for you, so they must have a good understanding of different sales structures, tax consequences, and financing options for the buyers. The brokers network must expand into all professional services industries including finance brokers, commercial agents, accountants, settlement agents, to provide you with the absolute best advice for every situation. The best brokers will have impeccable communication throughout the process of the sale, and they will be able to talk through complex situations in a calm and simple manner.
How long will it take to sell my business?
In the current market it is taking 6-9 months to sell a business. Our aim is to get an offer within the first 60 days, with the contract phase with finance taking 60 days. Our aim is to have your business sold within 120 days.
How long does it take from date of contract to settlement?
Usually I allow 60 to 75 days. I have had settlement in less than 30 and over 150 days. All depends on the number of conditions and the time needed to fulfil them. I will always look to have all conditions start from contract date, ie finance and due diligence have the same number of days to clear.
What is my business worth?
Your business is worth what the market is willing to pay for it. The more value that it provides a particular buyer and how suitable it is for them the better the outcome. The general market will pay industry standards for businesses. Comparable data from sales across Australia is used to see what the market is willing to pay through sold listings of a comparable size and type.
What does it cost to sell a business.?
Our marketing fee starts at $2500. Our success fee is anywhere from 6%-15% of the selling price depending on the size and complexity of the transaction.
What should I look for when signing an agreement with a broker or M&A advisor?
Before signing an agreement, make sure the expectations of the working relationship are clear. Only work with someone who has full transparency on what you will get and what it will cost you up front, no hidden fees down the line.
How can I prepare for due diligence?
Due Diligence is a chance for the buyer to go deeper into the financial and operational information of the business. If an expert appraisal has been conducted, Due Diligence should be very straight forward. All relevant information has already been disclosed through the information memorandum. Due Diligence is a condition of the contract and this gives the buyer the ability to verify information before agreeing to settle.
