The vast majority of non-property wealth is created from the sale of businesses. The founders and shareholders of businesses rarely make substantial incomes from salaries and dividend payments. This is mainly due to the reinvestment of profits back into the business to fund its growth.
The wealth of business owners is almost always crystallized only when the business is sold as a whole or in part. This makes the big decision of a business sale or equity divestment the most critical to the owners’ wealth.
It’s a big decision and one that requires considerable thought as often, the owners only get one-shot at it. Choosing a competent and experienced business advisor or business broker to work with you to plan and effect the sale strategy is imperative.
Business Accelerator provides support to business owners in developing a business sale strategy and managing the sale process including; the critical preparation of sale phase, marketing, negotiations, due diligence through to completion (settlement).
Using a Professional Adviser (Business Broker)
Even when business owners have had previous experience in business sales, mergers and acquisitions, they are not in an ideal position to manage such an undertaking on their own for a number of reasons. These include:
(a) Lack of time and the possible distraction away from managing their business,
(b) Being emotionally involved which could lead to stress and rash decisions or indecisions, and
(c) Reluctance of some buyers/investors to deal directly with owners without a professional intermediary.
Selling your business is a complex process. It requires up-to-date knowledge and on-going experience in varying market conditions, preparation of information memoranda, negotiation, valuation and project management skills to oversee all the key aspects of the sale and link all the parties and advisors within agreed timeframes.
Many sales of medium and large size private and unlisted public companies involve trade-sales, where the business is sold to other businesses in a related or the same industry sector. Some of the buyers could be competitors or clients of the business being sold. It is essential to manage potential conflicts of interest, ensure confidentiality and facilitate a smooth and structured process – thereby limiting disruptions and counter strategies by buyers and investors designed to reduce the ultimate value of the transaction.
Business Sale Process
When business owners decide to sell, Business Accelerator is engaged to plan, prepare and manage the complete business sale process. This includes pre-sale reviews, strategy development, preparation of information memoranda, sale presentations, advertise the business for sale, approach potential buyers and investors, negotiations with short-listed buyers, researching the buyers’ bona-fide and capacity to complete the purchase transaction, liaison with shareholders, accountants, lawyers, financiers and other professional services providers, support vendors during due diligence and transition until successful completion is achieved.
One of the most vital aspects of a business sale is the management of the due diligence (performed by the buyers) process based on agreed parameters and disclosures to avoid the risk of buyers proposing to re-negotiate the agreed sale price, terms and conditions. Lack of preparation and poor project management could lead to a business having to be sold more than once before a successful sale is achieved and this of course, involves unnecessary expense and stress.
Business Accelerator’s role does not end when a potential buyer has been identified or when an offer (terms sheet/heads of agreement) is accepted by the parties; but when due diligence has been completed successfully, when a binding sale agreement has been entered into and when the sale has been settled.
Business Accelerator Method
Unlike some business brokers, Business Accelerator does not sell businesses on a “listing” basis, where several businesses are "listed on the broker's book" and may be offered to the same buyers. Selling a business is totally unlike selling residential or a commercial real estate. Instead, Business Accelerator accepts each business sale assignment as a discrete project with its own unique sale strategy and plan.
Size and Type of Business
We sell businesses that are typically valued from $3 million to $25 million in a wide range of industries including but not limited to; information technology, communications, health care, import and export, manufacturing, distribution, professional services and master franchises. We do not undertake assignments to sell businesses in the hospitality and consumer retail sectors.
For a confidential and obligation-free discussion, please contact us by calling toll-free 1300 004 888 (international callers: +61 2 8090 2888), email firstname.lastname@example.org and we will reply within one business day.