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Buying and selling businesses

Selling Your Business: How to Get Agreement on Price Using an Earn Out

Forbes Magazine said recently that the number one reason businesses fail to sell is because the... read more

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Buying and selling businesses

How to Buy an Existing Business: A Comprehensive Guide

Many people dream about owning their own business. However, few convert that dream into a reality.... read more

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Peter Wallace Non Executive Director at Endeavour Capital
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Buying and selling businesses

Understanding Small Business CGT Concessions: The Complete Guide

Small business is hard. Ask any small business owner and he or she will tell you about the hard... read more

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Drue Schofield Proactive Accountant & Tax Agent, Business Advisor, Property at 4Front Accountants Pty Ltd
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Buying and selling businesses

Business Brokers: Who They Are And What Do They Do?

As a business person who wish to buy or sell a business, you might be wondering if it’s really good... read more

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Buying and selling businesses

Small Business Brokers: Do I Really Need One?

Do I really need small business brokers to help me? Let us begin the discussion this way:  Now... read more

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Buying and selling businesses

Important Things To Consider When Buying A Small Business in Australia

When one thinks of buying a business that is already up and running, there are certain points to... read more

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Buying and selling businesses

1 in 10 of us own a business……..surely not

Here are over 2 million registered businesses operating in Australia, according to the most... read more

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Hardly surprising though Huang...Just shows that small business is the backbone of this country
Wendy HuangFull Time Blogger and YouTuber at A Custom Blog in 4 Minutes
Wow that some interesting stats Bill!
Buying and selling businesses

Cyber Monday: It's The Most Wonderful Tax Evasion Day Of The Year!

Keyboard (Photo credit: cheetah100) Today is Cyber Monday. Chances are, if you’re sitting at your...read more

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Questions

How do I sell a business without using a business broker?

A friend of mine wants to sell his small Japanese restaurant, however, he doesn't have the money to... read more

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Ling Lee Director at Japanese Sword Auctions Australia
Hi Ling, From my experience i think it varies a little from industry to industry but there are a few websites such as Seek Commercial which seem to cater for just about all types. There may also be specialised websites specifically to the food industry. The owner should also engage their accountant or other people they know in the food industry to determine what a fair and reasonable valuation method is for the restaurant to ensure they don't sell it for under its true worth. If listing on websites is unaffordable then perhaps just having a chat with people they know run similar small businesses would be a good option. You never know who might be looking at trying to find exactly what they are trying to sell. Stuart.
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Buying and selling businesses

Online fraud - simple rules to reduce your risk

Fraud can be a very emotional for most people, having something stolen from you is never a nice... read more

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Richard Brock Founder at Online Business Consulting
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Buying and selling businesses

Small Businesses, Hold Them or Sell Them?

At some stage in your business life you will encounter the situation of whether to keep your... read more

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Hi Phil, well said. Great strategy.
Phil JoelDirector at SavvySME
Hi Anthony, Great article. I'd like to add that depending on the type of business you are in and the conditions of the Sale that you can realistically achieve, you may want to aim to sell your business before it hits its peak otherwise you may not be able to satisfy the conditions of the sale and therefore not able to maximise on the full financial potential of the deal. For instance, if you are expected to continue to work in the business for a further 2-3 years after the sale and are expected to grow the business in that time as a condition of the sale then it is obviously going to be easier if the business was still growing at the time of the sale. You could also attract more interested parties and potentially multiple offers if the business is deemed to have bright prospects. You will then be in a much stronger position to negotiate a favourable outcome.
Buying and selling businesses

Content for Small Business

Small business used to have a simple formula in the old days. You sell a product or service that... read more

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Agree. Content is still the king and gives one credibility as expert in their field. Definitely a must for most small businesses.
Vahe ArabianSEO Consultant at Online Marketing Works
Not only do you leave a footprint of your profile online, but you are trying to demonstrate that you are a subject matter on your professional background. Thanks for the post Anthony
Buying and selling businesses

Basics of Investments

Investment is a big task to manage; if managed well, rewards can be charming else it will be big... read more

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Questions

How do I calculate how much my business is worth?

I'm kinda of curious as what to my business is worth, I'm not at a point yet where I want to hire... read more

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Nick Chernih Founder at LinkBuildSEO
David SolomonOwner at Quiddity
Good answer Phil. The thing I'd add to that is that your business will be worth much more if you are not in it! By that I mean that if the business relies on you then the purchaser of the business really needs to buy you as well - or at least some of your time. You want to make yourself redundant through effective systems, training etc. You can still work in the business if you want to of course.
Phil KhorFounder at SavvySME
Hey Nick,  Great question. I think as business owners we often wonder about our business valuation but perhaps never get around to ask it. I'm neither a qualified business valuer nor have extensive experience in this field, but I can talk to some of my personal experience and give you some ideas. In fact, I just went through a similar process involving a family business. I used a combination of 3 methods below - initially as a back of the envelop exercise, then refine it iteratively:  1) income based - i.e. earnings such as EBITDA and cashflow calculations 2) asset based - asset values, liabilities, liquidation costs, etc. I'd argue that you should consider both tangible and intangible assets, such as IP, brand recognition i.e. assets that have net positive effect on the business long term 3) market based - basically what the market is prepare to pay, based on comparing of recent sales of similar companies. For instance, sifting through sites like realcommercial.com.au or domainbusiness.com.au gave me a ballpark idea. I reckon business valuation is a combination of science and art. The methods I used above is merely a guide, but you will find that there are lots of intricacies in applying these methods. What I found is that different assumptions will easily throw your calculations off a tangent. This is where a good professional business valuer can really help with bringing the art of applying these and other methods based on their experience. What I found critical too is a good business broker who knows the market inside out, and knows how to market your business accordingly. At the end of the day, you need to be confident that the right combination of techniques and experience are used reasonably to valuate your business when you're ready to sell. Hope this helps.
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Questions

Does anyone have any tips on selling a cafe / restaurant?

Hey guys, We want to sell a small Cafe/takeaway type restaurant out in the suburbs. Its quite... read more

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Jeffrey JoelMD at Auspac Trading NSW PL
You already have regular clientels, why not try simply posting a sign outside that this business is for sale or have a chat to a few of your better, well connected clients? The sign will generate some interest to local folks who might like to try their hands at running an already established cafe. Smart business people will see that there is an opportunity and they may not want to buy it themselves but they may have friends or associated that are looking for one. What better reference than coming from a regular who can vouch for your business.
Don GreggDirector at Advice 4 Growth
I suggest you try to figure out who are some good target buyers and approach them rather than relying on advertisements. Are there staff members on your team who would be interested, other cafe owners or their senior staff, customers who seem to have taken a interest in your business for example? Could you offer to have a staff member pay you over time for example if they lack the capital? And, remember a business is worth more if is robust - that is likely to continue to generate lots of cash well into the future. Reduce the dependency on the owner for successful operation and make sure you are still giving your business your best efforts right until sale day.
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