In communities like the Sunshine Coast, it is common knowledge that the economic engine driving our success is the triumph of small business. There is a genuine feeling that the small business sector is finally beginning to awaken from a very dormant 3 years.
Buyer enquiries are increasing highlighting strong confidence levels, and sales have been on a steady increase since the start of this financial year. Wherever you want to point your finger; the mining boom – interest rates – government assistance – or a change in State Government; the simple fact is that the buyer pool is bigger and this buyer pool is increasingly willing to commit.
Acting in conjunction with this is a large number of business owners who see this next rise in enquiry as the ideal time to sell and commit their funds to other ventures, or if it is that time in their lives, to their Super Funds. Let’s face it – it has been a difficult time trying to sell in recent years.
So the questions remain, how as a buyer do you buy the right business? and how as a seller do you attract the right buyer?
On the buyer’s side, above all, the most important box to tick is to be in a position to buy when the right business is presented to you. Have your finance in place – you must have your accountants and solicitors fully aware of your intentions and ready to act on your behalf when a contract is signed. Time delays are the single largest reason why small business transactions fail to complete.
From the seller’s side, consistently have everything in order. You must have up-to-date financials, lease, key personnel in place, and your debtors/creditors under control. It goes without saying, pricing your business for sale is critical, so you need to seek advice on this and listen to your Broker for sound advice on what else has been selling.