Hi Ling,

Yes in many cases it is not economically viable for a small business owner to engage the services of a Broker. This does not mean they cant achieve a successful sale and price selling it themselves.

There are many resources out there that are free or relatively inexpensive that can assist them in the process of selling their business.

Before advertising they will need to prepare a document on the business, which will tell potential buyers what their business is and what the current operations of the business looks like. This is the information they will need to provide to potential buyers after they express an interest in business.

By creating an information document (Lets call it a For Sale Memo) they will need to ask themselves: If you were buying your competitors business what questions would you ask and what information you would want to see from them? List these questions down and then fill them in with information on your business. If they get Sale Memo ready, they can send this to any potential inquirers, and it will answer any initial questions they may have about the business.

Now, where do you find the buyers? Since most of the businesses for sale are being offered through online advertising, some of the good websites to advertise your business for sale are business.domain.com.au, businessesforsale.com, bsale.com.au, business2sell.com.au.

Make sure your solicitor is involved to help you with the legal aspect of the transaction and also speak to your accountant to make sure your finances are in order, get a valuation done on the business to get an idea of your business value and sale price, and they also may have a potential purchaser, you never know.

Hope this helps answer your question a little further.

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.

Thanks @Stuart McGilvray and @Zoran Sarabaca for your replies. @Ling Lee you might find some tips and advice in the articles on this page ...  https://www.savvysme.com.au/article/5521-how-to-organise-your-business-before-selling

If you're looking to sell your business and are considering going it alone without a broker, it's certainly achievable. However, it's important to understand that this path requires a good deal of preparation and effort on your end. The key to a successful independent sale lies in being organized and proactive throughout the process.

The first step is to solidify your decision to sell. Carefully consider your reasons for wanting to exit the business and research any potential tax implications associated with the sale. Once you're confident about moving forward, it's time to get your business in top shape for potential buyers. This means gathering all your financial statements, legal documents, and ensuring your day-to-day operations are running smoothly. A well-organized and profitable business will naturally attract more qualified buyers.

Next, you'll need to determine a fair and realistic asking price. Research your industry and look at recent sales of similar businesses to get a sense of market value. Don't undervalue your hard work! With a solid valuation in hand, you can start exploring avenues to find potential buyers.

One approach is to leverage your existing network. Reach out to potential buyers within your industry - satisfied customers, reliable suppliers, or even competitors looking to expand their reach could all be interested parties. Additionally, there are online marketplaces and classifieds specifically designed for business sales. These platforms allow you to target your ideal buyer base and showcase your business opportunity.

As negotiations with potential buyers begin, be prepared to counter offers and have a clear strategy in mind. Involving a lawyer specializing in business sales is crucial at this stage. Their expertise will ensure a secure and legally sound sales contract that protects your interests.

Throughout the selling process, maintaining confidentiality is essential. While marketing the sale, take steps to avoid disrupting your day-to-day operations or causing unnecessary worry among your employees or customer base. Selling a business independently requires a significant time investment for marketing, negotiations, and due diligence from potential buyers. Be prepared to dedicate the necessary time and energy to see the sale through to a successful conclusion.

While going the entirely independent route has its advantages, there are alternative ways to get some professional help without committing to a full-service broker. Consider consulting with an accountant or business advisor. These professionals can provide valuable guidance on valuation, negotiation strategies, and even connect you with potential buyers without taking a large cut from the final sale price.

Remember, selling your business is a significant undertaking. By carefully planning each step, considering alternative professional support options, and being prepared to invest the necessary time, you can increase your chances of a successful independent sale.