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Winter Edition 2010
Welcome

We would love to report that the repercussions from the global financial crisis have all but disappeared, but there is no point in burying our heads in the sand. The truth is times are challenging…but the good news is not as tough as they were a year ago.

Buyers and sellers are still cautious and lending  institutions are tougher than ever to convince you’re a good investment and deserve the money you’re asking to borrow. Despite the improving  outlook for business
we’re finding that banks are continuing with their policy of requiring higher levels of collateral security and serviceability.

In some instances this is resulting  in buyers being restricted on what they’re able to offer. This is driving home more than ever that prices and expectations have to be realistic.
However,  if you’re thinking of selling a business you’ll be happy to hear it’s actually a quite a good time as there are always people looking to buy a well established and performing business for a whole host of reasons.

As for buyers, if you’re able to  get around  the challenges of financing there are some good opportunities so if you’d like to know more about what’s available on our books, take a look at some of the examples on the back page or call and have a chat to our team.

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successful business sales
Preparing your business
for a successful sale

If ever there’s reward proportional to effort it is the returns that often come from pre-sale input before starting theprocess of selling a business.

It should never be forgotten what a business buyer is seeking, how the buyer’s accountant will view the business and what’s needed to satisfy the lenders who will finance the transaction.

The following factors are the ideal for achieving a full value successful sale:

  • Sales trending upward
  • Solid management and staff
  • Established, balanced customer base
  • Favourable lease and/or location
  • Good computer, accounting and reporting systems in place

 

  • Profit margins meeting  or exceeding  industry standards
  • Cash flow steady or improving
  • Well trained employees and low staff turnover
  • Established, growing market share
  • Solid reputation for quality and service
  • Products and/or services which are well established or in demand
  • These ingredients are vital and will be reviewed by all prospective buyers as they compare your business to other opportunities.

 

Inside
  • Top 10 factors that influence the price of your business  - P2
  • Hot industry opportunities -  P3
  • Succession planning - P3