BEWARE – there are several unethical business brokers around trying to “buy” your business listing.
What they will do is give you a market valuation for your business which far exceeds your expectations and also far exceeds what anyone would pay as high as $8,000 for advertising in a glossy magazine.
Guess who prints & sells that magazine – their own publishing company. And they are making a very (un)healthy profit from those magazines. Advertising your business for sale in that manner is not only old fashioned, but it’s very ineffective. They often don’t even have a broker based in Western Australia, simply operating from Queensland, NSW or Victoria. So how can they sell your business?
Some buyers will respond to some newspaper advertisements, but 80% of our assisted private sales are made as a result of enquiries sourced from:
- Website advertisements
- Email newsletters sent to existing buyers, banks, solicitors & accountants
- Directly contacting investors, private equity companies & MBO specialists who we know
- Directly contacting buyers that we know
- To the management team in a well structured Management Buyout (sometimes combined with an investor or private equity firm)
So – what should you do when you get such an attractive appraisal of your business’s value?
Be suspicious. Contact me and I will provide you with a market appraisal which is based on recent sales in your industry and which is backed up by profit multiples (known today as Return on Investment %) achieved by all brokers throughout Perth. You will then, at the very least, have 2 different market appraisals to consider, along with 2 very different strategies to sell your business at the maximum possible value. We specialise in business sales in Cockburn, Rockingham, Kwinana and Mandurah and focus on strategic sales rather than financial sales, meaning your business should sell for a significantly higher value based on the strategic factors which we relate back specifically to each buyer. Our service also includes a significant range of optional profit improvement services designed to easily add value to your business.
If you proceed with those unethical brokers, just remember your time and money will be wasted.
Do we ever “buy a listing”?
NO – not only is it unethical but it is also a complete waste of time. We specialise achieving the highest possible price for you in the shortest possible time. With our strategic sale focus we can assist you to break out of the old fashioned (and lazy) financial sale method of selling businesses.
If the value of your business does not match your minimum price requirements, we will work with you to boost the profits and improve the business so that it can achieve the price that matches your goals. We can also help you to sell now with a suitable Earn Out agreement which provides you with a share of future profits – that in itself may very well meet your minimum price expectations. Read more on our Detailed Business Growth Services page or on our Profit Improvement page
Call Martin Dabb ph; 0458 290 100 (Perth) or Email Me to discuss any issues or questions related to selling your business in Rockingham, Kwinana, Cockburn and Mandurah.