Motel Owners Volume 15 Number 1

Page 16

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of intangible assets... ensuring that you have a fair and accurate gauge of your business worth. It is recommend that you seek a qualified business broker, who can help you determine if a valuation is needed for any element of your business transaction. There are other good reasons to engage a qualified valuer, buyers will naturally want to buy your motel for less than the asking price. The valuation limits the reduction in offers as the value is documented evidence that qualifies the asking price. The majority of motel sales depend upon finance. Banks in turn depend upon the report of a professional valuer. In summary therefore, the best approach to selling many motels is to establish the value by either engaging a valuer or a business broker who uses the same methods as a professional valuer to determine the value of your motel.

4. Business-for-Sale Websites We know how useful the Internet can be as a tool for connecting buyers and sellers in the business-for-sale market. By listing a business online, marketing reaches larger and more geographically diverse prospective buyers. Not all business-for-sale websites are equal, in fact there are huge differences in the enquiry results. Advertising on the lowest cost sites in many cases is equivalent to buying a tool that can’t do the job.

5. Solicitors It’s possible to finalise a business sale without the help of a solicitor, but it’s definitely not advisable. The legal details related to a motel sale are substantial, especially when it comes to insulating the seller from liability, so it’s imperative for sellers to use a solicitor with relevant experience. Although you may be more comfortable using your regular business solicitor to finalise the deal, do yourself a favour and secure legal counsel from a lawyer who specialises in business-for-sale transactions. If you use a business broker, they can usually help you find an appropriate solicitor to assist with the transaction. Finally, it’s important to thoroughly research and vet all business-for-sale specialists before you make any contractual commitments. In addition to relevant industry experience, make sure your specialists or resource providers have a proven background with similarly sized motels. Although the process of evaluating prospective specialists may seem time-consuming, the payoff is the assurance that you have the best possible resources helping to sell your business, which will hopefully lead to the highest selling price in the shortest amount of time. Phil Mussett is the CEO of BizAus Pty Ltd Licensed Business Brokers and Commercial Property Agents www.bizaus.com.au phil@bizaus.com.au mobile 0417 113 473


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