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Sell-Your-Business-Analyst

DETERMINE YOU and YOUR FAMILY’S FUTURE

With a Detailed Analysis of your Business Value and Saleability

Sell-Your-Business-Analyst

DETERMINE YOUR and YOUR FAMILY'S FUTURE

With a Detailed Analysis of your Business Value and Saleability

ARE YOU SERIOUS ABOUT SELLING OR BUYING A BUSINESS?

DO YOU WANT TO SELL? THEN YOU MUST FIND OUT THE REALISTIC VALUE & SALEABILITY OF YOUR BUSINESS
DO YOU WANT TO BUY? THEN YOU MUST FIND OUT THE REALISTIC VALUE AND DUE DILIGENCE OF INFORMATION PROVIDED

ARE YOU SERIOUS ABOUT SELLING OR BUYING A BUSINESS?

DO YOU WANT TO SELL? THEN YOU MUST FIND OUT THE REALISTIC VALUE & SALEABILITY OF YOUR BUSINESS
DO YOU WANT TO BUY? THEN YOU MUST FIND OUT THE REALISTIC VALUE AND DUE DILIGENCE OF INFORMATION PROVIDED

SELL YOUR BUSINESS ANALYST

Certified Business Valuer, Coffs Harbour and Regional NSW

Selling your business is one of the most critical decisions in your life so you owe it to yourself to get the best possible advice for the best possible outcome

BOOK Obligation Free 1 hour consultation

Ask All the questions you are afraid to ask.

WHY DO YOU NEED A DETAILED BUSINESS APPRAISAL?

  • SELLER – A Detailed Business Appraisal is a thorough analysis of the business, current market value and saleability of your business.
  • BUYER – A Comprehensive Business Appraisal is also a thorough analysis of the business for the buyer, especially to establish price, its assets and liabilities and evaluate its commercial potential.
  • BOTH are based on key elements like business historical performance, risk of continued income, sound financials, market reality, future growth and Return On Investment for the buyer.​
Business Broker Coffs Harbour
Douglas McDonald - Business Broker, Business Valuer and Saleability Analyst

My name is Douglas McDonald and as a Certified Business Valuer (AVI) I deal with all the facts and financials to obtain an unbiased market value of any business, the probabitity of a sale in the current market (seller) and due diligence, value and probability of a purchaser (buyer) actually buying. 

To do this we must first go over all the financial information in detail and normalise it to determine the real net profit of the business. In most businesses this figure is then capitalised (or multiplied) by .5 to 2.75 (risk) to determine its value.( Appraisal )

I am also a Certified Practising Business Broker (AIBB) and unlike most business brokers I will not list a business without doing a detailed appraisal so we both actually know the real market value and saleability. Why would you list a business not knowing its realistic current market value and the probability of it selling. The reality is, it is the buyer or finanacier that we must satisfy.

Only about one in five businesses listed actually sell because they are overpriced or not prepared properly for sale! Do you want to list your business or sell your business? Again it is the buyer or financier that we must satisfy.

Your Detailed Business Appraisal will also identify key areas of improvement, which once addressed, could greatly influence and increase the saleability of your business and influence a buyer to purchase.

I recently sold my business through Douglas McDonald. At all times I found Douglas to be ethical and professional and very tuned in to my need for confidentiality. Doug has established excellent processes and procedures, which was important to me and he explained everything as we went along. Doug spent a lot of time valuing my business and this was greatly appreciated. Doug is always friendly & easy to deal with & I couldn’t be happier with the result. We found a local buyer and my business was sold within a short timeframe with a happy outcome for all. Thanks Doug for all your assistance. Much Appreciated

Therese

WITH A DETAILED BUSINESS ANALYSIS

  • Unprepared and overpriced businesses is the most common reason why businesses do not sell!
  • Qualified buyers will not even look at overpriced businesses.
  • You must minimise the ‘risk’ to the buyer.
  • Financials and Accounting must be ‘accountable’.
  • Buyers buy ‘opportunities’ that are profitable now.
  • Manuals and systems are 'crucial’ to a new owner.
  • Plant, Equipment and Stock must be ‘genuinely’ priced.
  • It is ‘essential’ that premises are clean with substantial lease arrangements.

WITHOUT A DETAILED BUSINESS ANALYSIS

  • Owner bases sale price on 'emotions' – not actual facts and information
  • ‘Assuming’ intangibles like branding, client loyalty, and reputation determine value
  • Most buyers ‘do not care’ how much time and effort you put into it, they are only concerned with the Return on Investment results it produces or has the ongoing potential to produce
  • All wages for owner and staff ‘are not taken’ into consideration
  • Financials are not ‘adjusted correctly’ to give a true indication of actual profit or loss
  • ‘No comparison’ of similar sales history of your business or industry
  • Expecting ‘too much’ for future growth- Business must show a continued yearly growth
  • Price - Once you have ‘turned off a buyer’ by an unreasonable and unjustifiable value you have usually lost them for good

NO 1

PRICE & VALUE
The current market value is the single most important factor when it comes to selling
more

NO 2

PROFITABILITY & RISK
Most buyers search for business opportunities that are profitable
more

NO 3

FINANCIAL INFORMATION
Proof that the value that has been placed on the business is true it is absolutely critical
more

NO 4

PREMISES & LEASE
Location, rent, suitability for future growth and lease arrangements are very important
more

NO 5

TEAM, SUPPLIERS & CUSTOMERS
A significant asset of a lot of small businesses are the staff and client list.
more

NO 6

SYSTEMS & MANUALS
The procedures used to successfully operate any business must be documented an ease
more

NO 7

STOCK, PLANT & EQUIPMENT
All stock must be recorded and its value calculated at cost price
more

NO 1

PRICE & VALUE
The current market value is the single most important factor when it comes to selling
more

NO 2

PROFITABILITY & RISK
Most buyers search for business opportunities that are profitable
more

NO 3

FINANCIAL INFORMATION
Proof that the value that has been placed on the business is true it is absolutely critical
more

NO 4

PREMISES & LEASE
Location, rent, suitability for future growth and lease arrangements are very important
more

NO 5

TEAM, SUPPLIERS & CUSTOMERS
A significant asset of a lot of small businesses are the staff and client list.
more

NO 6

SYSTEMS & MANUALS
The procedures used to successfully operate any business must be documented an ease
more

NO 7

STOCK, PLANT & EQUIPMENT
All stock must be recorded and its value calculated at cost price
more

FIRST THINGS FIRST

You need to consider these things before going any further

  1. What is your motivation or reason to sell your business at this time?.

  2. Who is the legal owner / owners of the business, who makes the decisions and are they in agreement to sell the business now?

  3. What entities are involved, Sole Trader, Partnership, Trust, Company etc.

  4. Have you done any research or have any idea what is involved to prepare it properly for sale, how much work and effort you still need to put in. How you are feeling emotionally, and how it will affect your partner or family life?

  5. Has it ever been explained to you how most (SME) Small Medium Enterprises are valued or appraised to determine the current market value? Most Business Value is directly related to profitability and risk to obtain that profit. The closer the asking price to market value, the quicker the business will sell.

  6. Do you have a detailed ‘Exit Plan’ in place that you have been working on for quite some time in order to maximise the value and achieve a sale in the shortest possible time?

  7. Who do you think you would buy your business? Have you ever looked at your business from a buyer’s perspective?

  8. Are you aware that only about one in five businesses listed for sale actually sell?  Selling a business can be very emotional, complex, time consuming, expensive and energy draining so it is critical to have the right team of professionals engaged to help you navigate your way to a successful sale.

  9. Engage the right team of professionals now starting with a detailed Business Appraisal from Douglas McDonald “ Sell Your Business Analyst” 

  10. What will you do after the sale is complete? How will you spend the time that you will have after the sale and with who will you spend it?