Businessbroker The Authority on buying and selling businesses VOLUME 3 NO.1
AUS $5.95 NZ $6.95 INC GST
Is YOUR BUSINESS Built to SELL?
"The Goose that laid the Golden Eggs!"
The GOLDEN RULE for Business Growth
MAxIMISING Your Business Value
The authority on selling businesses
Are You Considering Selling Your Business?
SOLD! SOLD! SOLD! SOLD! SOLD!
Talk to the Authority on Selling Businesses
1300 763 668 linkbusiness.com.au
THE TEAM Editor/Designer: Liann Rasera Writers: Monique Jeremiah, Watkins Tapsell Solicitors, Kim Bourke, Blair Harding, Mark Blomkamp, Peter Fowler, Adrian Bromley, Derek Parsons, Jeremy Dean, Michael Sing, Sean Wolrige, Don Gilbert, Peter Morgan, Kerry O’Neill Cover: Shutterstock.com/Utemov Alexey Business Broker magazine is published by Business Sales Corporation Pty Ltd trading as LINk ADVERTISING If you wish to advertise in our magazine please call: Liann Rasera (07) 5572 2122 or email: firstname.lastname@example.org CONTACT DETAILS BUSINESS SALES CORPORATION PTY LTD t/as LINk The Atrium Level 2, 15 Lake Street Varsity Lakes, Qld 4227 Australia P O Box 5141 GCMC Bundall Queensland 9726 Australia Ph: +61 (07) 5572 2122 Fax: +61 (07) 5575 8482 email@example.com linkbusiness.com.au LINK New Zealand firstname.lastname@example.org www.linkbusiness.co.nz LINK South Africa email@example.com linkbusiness.co.za DISCLAIMER The contents of Business Broker are copyright of Business Sales Corporation Pty Ltd t/as LINK. Any reproduction without prior permission is strictly prohibited. Although information in Business Broker has been derived from sources believed to be reliable and accurate, no liability is accepted for any opinions expressed or for any error or omissions. This includes material which may be inserted into the publication.
Finding the Business that Lays Golden Eggs! From the current economy entrepreneurs are the new business buyers and owners; owning a business can provide huge rewards however being an entrepreneur or a business owner is not for the faint hearted. We believe that owning a business can be extremely rewarding financially and personally; you make it happen and you are only limited by the boundaries that you set. Sure there are risks however you can reduce your risk substantially through being informed, prepared and obtaining the right advice. There is an old fable that tells of a farmer and his wife who were blessed to have a magical goose that laid golden eggs; each day the goose would lay a golden egg. The farmer grew incredibly rich by selling these golden eggs however as he grew rich, he also grew greedy and so he and his wife devised a plan to get all of the gooses gold at once. Thinking that all of the gold was inside the goose they killed the goose and opened her up only to find that there was no gold inside her at all; in fact she was just like every other goose only now she was dead and they had no more golden eggs. While the lesson being taught in this fable is primarily about greed, the goose that lays the golden eggs is also a good analogy to owning a business; had the farmer nurtured the goose she would still be laying golden eggs, he would be wealthy, his family would be enjoying a desirable lifestyle, they would be setting aside a nice “nest egg for retirement” and when retirement occurred they could sell the goose for a substantial price. After all isn’t that “what owning your own business” is all about! In this edition of Business Broker we asked the experts for advice on getting the most out of your business and getting it to produce golden eggs. Their insights are pure gold with articles on; the golden rule for business growth, maximising your business value and getting your goose set up. Also in this edition we explore Entrepreneurship, conquering cash flow and unlocking the key to a successful business and costly mistakes that may be holding your business back. We look at the Australian commercial rental market, superannuation and unleashing the potential in your business as well as how not to choke the goose that lays the golden eggs! We hope that you enjoy reading these articles and that your goose lays golden eggs. We love success stories, good businesses and people being able to achieve the lifestyle they desire.
DAVID FITZGERALD DIRECTOR The authority on selling businesses
Business Broker 3
Don’t miss the next issue Businessbroker The Authority on buying and selling businesses
survival in a cHAnGinG environment
imPoRTAnce oF cAsH mAnAGemenT
Percentage of Australian small and medium-sized businesses (SMEs) connected to the internet
The Authority on buying and selling businesses volume 2 no.3
Aus $5.95 nZ $6.95 inc GsT
volume 1 no.4
The Road To GRoWTH!
"How To make money!
Percentage of SMEs with a website
urvey A lot of money!" oney!"
successFul succession Planning
5 secReT T WAYs WAYs To GRoW YouR WY You R PRoFiTs
Percentage of Australian’s that made purchases online in the past year
BuilDinG Your Business in Tough Times
Percentage of SMEs that use internet banking
Percentage of Australians who use the internet on their mobile phones
Our magazine strives to lead the industry
in education and up-to-date information that we believe offers a great insight into
Percentage of Australian SMEs using e-commerce to sell goods and services online
current business activity. Our writers are all experts in their fields and provide advice and strategies for all business
owners, people that are looking to own their own business and professionals that
Average proportion of orders taken over the internet
work with businesses. To receive your copy, please email your name and postal details to: firstname.lastname@example.org or call us on 1300 763 668.
SOURCE: Sensis® e-Business Report 2011
The authority on selling businesses
15 20 8
18 6 Why You Should Consider Becoming an Entrepreneur
Entrepreneurship is without a doubt a fantastic career choice, says Monique Jeremiah.
7 Top 10 Things to Consider When Going into Business
Watkins Tapsell Solicitors offers their advice.
8 Maximising Your Business Value
Are you running a smart business? Kim Bourke explains.
9 Your Goose not Laying Enough Golden Eggs? Blair Harding shares 9 costly mistakes that may be holding your business back.
10 Ensure the Goose Lays Golden Eggs!
Mark Blomkamp explains due diligence for buying a business.
12 Unleash the Beast.....In Your Business
How you can unleash the potential in your business. By Peter Fowler.
15 Conquer Cash Flow and Unlock The Key To a Successful Business
Jeremy Dean of ANZ highlights the five key areas of cash flow.
16 Is Your Superannuation Safe? Superannuation is no longer used just as a nest egg for retirement, Michael Sing explains.
17 Understanding Key Terminology in the Sale Process Sean Wolrige of LINK explains the terms.
18 It is Market Rent or Vacant Don Gilbert provides his views on the Australian commercial rental market.
19 Is Your Business Built To Sell? Peter Morgan offers his tips on maximising your golden egg.
20 Donâ€™t Choke the Goose that Laid the Golden Egg! Kerry Oâ€™Neill tells how to get value out of your business.
13 The Golden Rule for Business Growth Adrian Bromley reports on how to improve sales performance and adopt the golden rule mentality.
14 Getting Your Goose Set-up!
Business Finance is a specialised area and there are other issues you will need to consider when arranging finance, writes Derek Parsons.
Business Opportunities 22 Queensland 28 Northern NSW 31 New South Wales
Business Broker 5
Why you should consider becoming an entrepreneur?
2012 Gold Coast Young Citizen of the Year & Young Entrepreneur Under 30, Monique Jeremiah believes that entrepreneurship is without a doubt a fantastic career choice for those who crave to work for themselves and love to innovate. Creating Value
So what is an entrepreneur? By definition, an entrepreneur is
someone who assumes the financial risk of beginning and managing a new venture. This venture may be based on a totally new idea, a new way of doing something, a new location, or attempting something no one else has done before.
If you are ambitious, confident in your abilities, optimistic, unafraid of change and hardworking entrepreneurship can really stimulate your mind. Although entrepreneurship is initially risky and there is no definite security, if you are prepared to put in more than 100% of your efforts and have a ‘never-give-up’ attitude you can almost guarantee that you will be able to overcome business challenges.
Therefore before you decide whether to become an entrepreneur, it is important for you to assess the real reasons why you may consider pursuing this goal.
The most frequent reasons for becoming an entrepreneur: You Want To Become Your Own Boss More likely you have always had a burning desire to start your own company based on your own terms, without having to answer to another individual.
You Want To Pursue Your Own Ideas Often you see opportunity in places where others never imagine. You are highly creative and innovative and have an eye for spotting opportunities for new products or services that are not currently being offered by your company or the market. You can see a problem in everyday life that needs fixing and have a desire to bring your solution to the marketplace.
You Desire Uncapped Financial Rewards You have recognised the reality that working for someone else will never make you rich and financially secure and so you have a goal to achieve significant earnings through running your own business.
Why you should consider becoming an entrepreneur: Independence and Control Being an entrepreneur often brings the reward of being able to work for yourself and your own goals. It gives you the ability to make decisions and you also have the opportunity to capitalize on your own strengths and invest in your time how you please. 6 Business Broker
You can add value to the market by creating something that many people will need and want. You can improve on existing products in the market or be daring and start a whole new concept which could make people’s lives more meaningful, comfortable, productive, or entertaining.
Personal Growth If you’ve ever wanted to experience true personal growth and test your potential, being an entrepreneur will definitely achieve this objective. Being an entrepreneur forces you to educate yourself, become assertive, develop your intuition and logic and learn how to respond to change quickly and carefully. It also teaches you the value of being 100% self-reliant.
Building Relationships Once you become an entrepreneur you will more likely meet many new people who are like-minded and have either gone through challenges as you. As a result you can develop new friendships, form business alliances and learn many tips and advice from those who have really succeeded. High Earnings Are Possible As an entrepreneur, the reality is you can definitely earn more than working for someone else. As you are in control of your hours and what you do, you can decide when and how you work and how much you wish to charge. Therefore you have an absolute uncapped potential for earnings. Ready to become an entrepreneur? ----------------------------------This article was written by Monique Jeremiah, Director and Owner of Exceptional Group, Exceptional Tuition and Resumes and Exceptional Training on the Gold Coast. Exceptional Group is currently a finalist in the 2012 Australian Small Business Champion Awards . Contact (07) 5592 4848 or visit their website www.exceptionalgroup.com.au. www.linkbusiness.com.au
PHOTO STOCk xCHNG
However, before you consider becoming an entrepreneur it is really essential to understand what it means to become an entrepreneur, what motivates you deeply and what you can achieve by engaging in this exciting endeavour. Although entrepreneurship is definitely a challenging journey it can also be one of the most financially and personally rewarding experiences if you are willing to take a chance!
THINGS TO CONSIDER WHEN GOING INTO BUSINESS
Going into business involves the consideration of many issues and concerns. Countless questions and concerns will be running through your mind with the most pressing question being ... Where do I start?! While there are so many matters to consider, Watkins Tapsell Solicitors and Barristers believe that the Top 10 are as follows:
How are you going to structure your business? Will it be as a Sole Trader, a partnership, a joint venture, a company or a trust? What is the best structure for you? It is important to structure your business properly from the start. If you are going into business with someone, including family or friends, a written agreement must be in place. The right structure can minimise tax and protect your assets and reduce costs and taxes as the business grows. The agreements between parties will protect each party’s assets into the future.
Are you going to have employees? Have you worked out the terms of employment and job descriptions for all potential employees? It is important to have written employment agreements in place at the start of any employment and the terms of employment and job descriptions will help.
Will you be leasing Premises? Your premises must suit your business and accommodate any www.linkbusiness.com.au
potential expansion of your business. Your Lease must include a fixed term and all conditions that you and the Landlord have agreed upon. A checklist of the things you need to discuss with your Landlord will assist and notes taken at those meetings will also assist.
How are you going to deal with customers including those who just don’t want to pay? You should have written Terms and Conditions in place that apply to all of your sales. The terms and conditions will give you the appropriate remedies for the recovery of debts, as well as deal with issues such as warranties, delivery of goods and returns policies.
Have you protected your Intellectual Property? Intellectual property includes your business name, your logo, your ideas and your systems. Without the proper protection, another business could be passing itself off as your business and you may have no right to take action against it.
Will you have adequate stock to run your business? If you rely on stock to run your business then you must have supply agreements in place to ensure that suppliers have obligations to continue providing you with the necessary stock
What insurances do you need? Different businesses may require different insurances. Most insurance companies will offer a “business pack” to cover the general insurances but there may be additional insurances specific to your business. Check the lease of your premises and check any franchise agreement that you take on as they will include insurance requirements.
Do you have enough money to start and operate the business? What total amount will you need to start the business and operate the business? Do you need to borrow money and, if so, what assets are you going to use to secure your finance?
What will happen to your business if something happens to you? Your will should make provisions as to what is to happen to your business if something happens to you. Your agreement with the people that you are going into business with will make provisions for what is to occur if something unexpected occurs.
Do you have good advisors? A good accountant will be able to advise you as to what structure is best for your business, provide an estimate of start up costs, a cashflow guide and ongoing assistance. A good lawyer will work closely with your accountant on these issues and will help you set up the structure and essential documentation for your business and help you protect your assets.
The 10 matters indicated are not all the issues and concerns, each person and each business is different. From leasing and franchising, to how to deal with your employees, the day-to-day running of a retail business can be overwhelming. Watkins Tapsell has a broad range of expertise in these areas of law and is well placed to help you with all the legal aspects of your business. Watkins Tapsell is also a member of both the Australian Retailers Association and the Franchise Council of Australia. With a Law Society Accredited Specialist in Business and Property Law, and an experienced team of commercial solicitors, Watkins Tapsell has an understanding of what issues affect you in this complex area. Our task is to make your job easier in setting up your business, to advise on the issues and to smooth the path for you. -----------------For further information, contact Watkins Tapsell on (02) 9521 6000 or visit www.watkinstapsell.com.au
Business Broker 7
In order to maximise the sales value of your business any advisor or broker will tell you that a business that is run in a smart manner will attract a higher sales price in comparison to a similar business run in a less efficient manner (all other things being equal).
a business owner can review at the drop of a hat to ensure that the heart of their business is still beating strongly. These should be used on a daily/weekly basis as an interim monitoring tool until the monthly figures are available.
exercise will assist with this. Finance advisors use these regularly:
So what is a smart business? Largely it comes down to doing the simple things well, but it all starts with a plan.
Benchmarking your business to your competitors lets you know how well you are really doing in your industry. Being in the top quartile of your industry will ensure you get a better price for the sale of your business.
Lets do the same thing for the value of your business:
You may have heard the phase “A failure to plan is a plan to fail”. In order to avoid failure a smart business should have a formally documented, comprehensive business plan that is updated at least annually, and is periodically reviewed to ensure that the ‘plan’ is being followed throughout the year.
Having an annual plan is great, having an overall five, 10 or 15 year plan is even better. Most of all it will allow you to plan your long term goals for the business as well as your eventual succession out of the business.
Budgets and cashflow forecasts are an essential tool to ensure that you are following the business plan, as well as managing the forward cashflow of the business.
Having a specific plan to sell your business will assist in maximising its value. One of the most critical areas of a succession plan is the ability of the business owner to remove themselves from their business and it still being able to carry on (profitably) without them. Are you able to do this? The timeframe for succession plan will cover a period of 2 – 5 years.
Your budgets should be prepared on a monthly basis. Monthly monitoring of your actual to budget performance is essential to ensure that the business is on track to meet the goals set out in the business plan. It also lets you address any deficiencies that arise in a timely manner before they become a big issue.
kPI’s Set and then monitor regularly the key KPI’s to your business. These are the sort of things that 8 Business Broker
Valuation How do you measure all of this? A short form valuation every few years will track the progress of your business’ value & it’s improvement. Having a goal in mind for the value you want upon sale will assist with the drive for improvement. Doing a valuation gap
How much do you want when you retire?; How many years do you have until retirement?; Then you need to save this much each month in order to meet your retirement goals.
How much do you want your business to be worth when you sell it?; How many years until you want to sell it? As it is currently worth X and is growing at the rate of Y, you will achieve your target value in Z years.
The net result is usually that Z is unlikely to match up with the intended timeframe for sale. To solve this problem you can either: • • •
Work for more years than you intended; Accept a lower value for the sale of your business; or Undertake some radical business improvement steps to ensure you meet your goals. i.e. start running your business smarter.
--------------------------This article was written by Kim Bourke of Moore Stephens Accounting (07) 5519 1000 or visit www.moorestephens.com.au www.linkbusiness.com.au
PHOTO SHUTTERSTOCk IMAGE
Are you running a smart business? kim Bourke explains.
Your Goose Not Laying E
Golden Eggs? We all want the goose that lays the golden egg – a business that provides reliable income without requiring time and effort. Why then do so many business owners feel their goose is not only completely constipated, it’s gone crazy and is holding
them and their lifestyle to ransom? Real world business millionaire and number one ranked Action Business Coach (globally), Blair Harding, reveals nine mistakes that could be holding you back and costing you tens / hundreds of thousands of dollars. And he gives you straightforward solutions to finally get the goose (business) you’ve always dreamed of.
attention, fosters interest, develops desire and compels action.
SALES: Do you have a system to generate and convert leads into sales or are you dangerously relying on your sales staff and their individual skills? Sit down with your most successful salesperson (which could be you!) and document how they convert inquiries into sales. Teach your other sales people their system and watch your sales increase overnight. SYSTEMS: Stop being the person who ‘does’ everything. Instead, become the person who develops a set of checklists and scripts for how everything in your business should be done. Might seem like a lot of work but, this frees you to grow as big as you like, franchise, or simply go on holidays for months at a time.
TEAM: Don’t merely hire for skill, focus instead on attitude and train staff to follow your systems. Then you’ll have the best, most loyal team, using the optimum procedures that give you the ultimate results. Attitude wins over skill every time.
FOCUS: Do you know exactly what you want to get from your
COACH: Every successful athlete and CEO has a coach (even Eric
business? It seems easy but this is where most business owners get it all wrong. Their goals are weak, their plans far too general. Nobody drifts to success. It takes specific goals, detailed plans and consistent action.
Schmidt, the head of Google). We all need somebody to help pinpoint goals, establish detailed plans, and stay accountable to taking consistent action. And somebody to help you keep the right perspective when you’re in the thick of things. One idea a month can easily bring you thousands more than your investment in a coach (and save you thousands in lost money and time). Find a business coach who excels in both hands-on business ownership and coaching, and you’ll find the most valuable asset for your success.
CASH: All business millionaires have this in common – they know their numbers. Not just generally – they know precisely where they stand financially. Create a set of Key Performance Indicators and monitor them every day. Things like inquiries, sales, upsells, follow-ups… and most important of all… profit.
PHOTO STOCk.xCHNG IMAGE - GERI-JEAN
MARkETING: Dominate your industry with marketing that grabs
LEVERAGE: You don’t have to settle for a measly single-digit growth. Develop strategies for all five of your business drivers (increase leads, increase conversion, increase frequency of purchase, increase average dollar sale, increase margin) and watch your growth soar. SERVICE: Everybody knows ‘word of mouth’ marketing is the most effective form of marketing, yet few business owners implement strategies to ‘wow’ their customers. Take a moment now to look in the mirror and analyse what you are doing to provide your customers with ‘knock-your-socks-off’ service so they become raving fans who buy more, buy more often, and tell everyone they know to buy from you too. www.linkbusiness.com.au
This article was written by Blair Harding of ActionCOACH. Blair made his first million at age 26. And he has run multiple million dollar companies since. To find out more about his group and one-on-one coaching programs visit www.actioncoach.com/blairharding or phone Blair Harding ActionCOACH on 0417 992 791. Business Broker 9
The Goose Lays Golden Eggs!
What exactly is due diligence for buying a business? What do you need to look for? And what do you need to do? Mark Blomkamp explains.
Beyond just proving that the seller's financial information is accurate, this process allows you to look into the company and find out how it works, where its strengths lie, what weaknesses it has and how you can or can't make a difference as the new owner. A Pro Forma financial analysis should also be developed during due diligence to run best and worst case scenarios to get an idea of revenue and cash flow possibilities.
Basics To Look For Financials - Again, "official" financial statements such as tax returns with many small businesses usually give you a very small piece of accuracy. For the most part, the accuracy is in the expenses but even that may be off so as to not make the entire tax return seem odd to the government. Your best bet is the "true" books that most business owners keep. Some 10 Business Broker
use a notebook and some use a financial programme like MYOB or Quick Books. You should obtain a Profit & Loss (Income Statement) from their accountant as well as a Balance Sheet. In any business, especially highly cash based, get all of the bills and payroll information available for the past one to three years. At a minimum, this should tell you what the true company expenses are. Another thing you want to look for in this information is revenue growth vs. shrinkage in the last three years and whether profit margins are in line with industry averages. Keep an eye out for trends in Accounts Receivable (from the Balance Sheet) to see if they have too many slow paying customers or have been having trouble for multiple years in collecting payments. Find out what the typical liabilities and Accounts Payable are like. Are there a lot of big ticket items? Will you need to take over any payments for any loans or leases? What kind of cash needs to be laid out each week or month to keep the business going? Assets - Assets of a business vary by business type but the due diligence involved will be very similar regardless of the business type. www.linkbusiness.com.au
photo stock.xchng IMAGE - rknds
imply put, performing your due diligence means taking a highly scrutinising look at the business you are wanting to purchase.
solicitor For instance, something food related will have ovens, refrigerators, furniture, registers, etc but a route business will have only things such as trucks and computers. In general, these assets do not add value to most small businesses as far as the sale price goes because without them, there is no business. What is important about these assets is that everything will be included in the sale and that everything is in working order. Your valuation of the business can greatly change if you will need to replace something inside of a five year time period. That replacement or overhaul cost needs to be subtracted from your original valuation. A list of the assets is a must. If possible, you should also get a depreciation schedule and any warranty information for each item. Inventory (stock) - As for inventory or stock-in-trade, this is often paid for outside of the asking price. Regardless, you must get a good idea of what is "good" inventory and what isn't. This is not the time to do a full valuation of the inventory that will be before payment of the purchase price. You need to figure out what inventory the business has that is typically sold or used in a short period of time. General Operations - Every industry has its own type of standard ways to operate. They almost all have employees. And they all have finances to track. The difference though, is how they keep track of these things. Banking should also be part of your due diligence checklist and prepare yourself with extra cash on hand to cover these things before you can establish a line of credit. Lastly, make sure you get copies of any legal documents like licences, proof of incorporation and a list of all of the owners. Sales and Marketing - How a business gets its customers/clients is very important to you as a business buyer and therefore should not be overlooked in your due diligence checklist. This goes for any type of business. Keeping the flow of customers that has already been established and how you can keep it that way as well as increase it should be a major concern. Employees - Some businesses don't have employees, others have a few part-timers and other have a whole bunch of full time people. As long as there is even one part time employee, you need to find out at least a few key things such as how long employees have been there, who are the key ones and who is staying to name a few. Vendors/Suppliers - very business has some sort of vendors and suppliers. These could be suppliers of products being sold, spare parts, machinery, equipment, office supplies, repairs/maintenance, insurance, etc. Be sure to come up with a thorough list and get the seller to give you as much information as possible. This information would include any contracts, licenses, special deal/discounts, etc. Don't count on being allowed to contact vendors during due diligence but ask to do so. If you get the green light, ask the vendors/suppliers about the relationship with the business you are about to purchase. www.linkbusiness.com.au
Competition - You need to find out the main competition and determine if they are truly a threat or just another small fish in the pond with you. Also find out how they actually compare to the company you are buying based on price, service, quality etc. This will give you an idea of what to watch out for and what you may be able to change to better the business and protect yourself from these competitors. When to Get Your Lawyer Involved - When you are starting a business, then there are several areas of law you need to know something about. Like other professional people, lawyers charge for their time, experience and skill. Laws affecting the operation of business change rapidly. New laws have had an enormous affect on setting up, running and liability of businesses and directors. We can advise on how the changes may affect the business and what to do to get the most benefit from and minimise the risk inherent in these commercial laws. Lawyers know about the contracts which surround business relationships. They know that if you get these things right you go a long way towards minimising the risks of business.
Whatâ€™s Next? Once you have completed your due diligence, it is time to decide to go through to the closing phase. This is otherwise known as "going to contract". Sometimes this involves adjusting your asking price down if you have very valid reasons to do so such as assets that will need to be replaced or the seller has not significantly "proved" his numbers. This counter offer may end up shutting the whole deal down or the seller may make some kind of concession.
Conclusion Successful business outcomes are often a matter of having the right people in the right place at the right time. Thatâ€™s exactly what Haney Lawyers offers you. We are a group of professionals bringing a range of commercial and technical capabilities to businesses of all kinds and sizes. We talk your language. We add depth and new capabilities to your existing management resources. We understand the critical issues facing your business and offer a comprehensive suite of services covering key business needs. DISCLAIMER - This article is not legal advice and the views and comments are of general nature only. This document is not to be relied upon in substitution for detailed legal advice. While data has been compiled from reliable sources and all care has been taken to ensure its accuracy, you should not act solely on the basis of the information contained herein. We recommend you contact us for further advice. ------------------------------------For further information on due diligence contact Mark Blomkamp Consultant , Haney Lawyers email@example.com M 0402 510 642 - Level 3, 33 Elkhorn Avenue Surfers Paradise QLD 4217 Telephone 07 5539 9955 | Fax 07 5539 9911 | Web www.hlaw.com.au Liability limited by a scheme approved under Professional Standards Liability. Business Broker 11
Unleash the Beast... in your business
There is no doubt that budgets are tight. And it appears that the market uncertainty that is killing consumer confidence is set to continue for a long time to come and businesses will be hit harder than ever.
“Those who continue to seek expert advice
and invest in periods of downturn are the ones more likely to reap the benefits when consumer confidence improves”
The message for business owners remains the same though: those who continue to seek expert advice and invest in periods of downturn are the ones more likely to reap the benefits when consumer confidence improves. And making the right choices is an enormous part of making it through this period of uncertainty. As a business strategist I’m often asked, “Why is it that some businesses achieve levels of performance that far exceed others?” The answer is simple. It’s not because they’re in better markets or that they have more resources or that they are smarter than anyone else. The answer is they think differently and make the ‘right’ choices; more often and they seek expert advice, constantly. Ask yourself, how would your business performance and value improve if you had the capability of knowing the financial outcome 12 Business Broker
of every decision before the decision is even made? It’s almost ‘crystal ball’ stuff, but the technology and expertise exists. The adviser of the future has been doing this for their clients for years already. • Competition is now becoming fierce and the high Australian dollar combined with an ever more internet savvy consumer is flooding our markets with cheaper imported alternatives. For you to survive in business your adviser needs to be able to answer your ‘what-ifs?’ This is where the real worth of an adviser comes to the forefront adding significant value to your business and bank account. Can your current adviser do this or are they too busy doing mundane tax returns that offer little value to your business performance? Is it time for you to find a ‘real’ business adviser and watch your bank balance and business value grow. So how should you brace for the year ahead and unleash the potential in your business? The first symptoms that a business is in trouble is usually cashflow issues, but the cause often resides in an unwillingness to seek expert help in crucial areas of business such as budgeting, financial modelling, strategic planning and value improvement. The following points should form part of your focus for 2012 if you want to improve your business and be ready to maximise your sale value in the future. •
implement a plan to increase its profitability and cashflow. Then value it every 12 months to measure your progress and to identify further areas to improve. Take advantage of “what if” technologies that can show you what cashflow effects major business decisions will have before you make them i.e. Increase in prices, adding or removing a product range, the purchase of major equipment, or taking on a new employee.
Business owners who want to galvanise for the years ahead and optimise performance by making the right decisions constantly contact us for our expert knowledge on optimising business valuation, growth improvement and succession planning. Have you sought this advice and if so why not get a second opinion from us today? Knowledge is power. We have the ability to unleash the hidden potential within your business so contact us now for an obligation free appraisal of your business performance and how we can help you become the leader in your industry. This article was written by Peter Fowler. Business Strategist & Partner of Collins Hume Accountants & Business Advisors. Awarded CPA Australia’s Top 40 Young Business Leaders. firstname.lastname@example.org www.collinshume.com.au (02) 6686 3000 PHOTO FREE GREAT DESIGN IMAGE
As Australian small businesses enter 2012, they do so against a backdrop of uncertainty. Factors contributing to this sense of unease include: the European debt crisis; the looming (and as most commentators are saying inevitable) GFC2; and the announcement of Australia’s worst employment figures in two decades.
Peter Fowler explains how you can unleash the potential in your business.
Benchmarking your business against your competitors in your industry to identify areas of improvement. Ensure you use ‘real time’ benchmarking figures, not out dated, or pre GFC figures. Valuing your business today and www.linkbusiness.com.au
Golden RULE For Business Growth To improve your sales performance, adopt the Golden Rule mentality.
Care About Your Customers Perhaps the most important part of golden rule selling is the emotional component embraced in the word, "caring." Top sales professionals care about their customers. They care about themselves, their companies, their products and services, and they really care about helping their customers to make good buying decisions. If you think about the very best salespeople you know, you will recognise that they are caring individuals.
Adrian Bromley reports.
ncreasing sales and your business reputation go hand in hand with increasing business value and creating a nest egg for the future. Yet as basic and critical as it is, businesses often invest less in this area than they do on the office Christmas party. And those same businesses are often unaware that they could be eligible for a government funded incentive scheme to reimburse them for any costs incurred.
They Don’t Care How Much You know If you think about your very best customers, you will recall that these are invariably people you care about, and who care about you. When you think about the people you buy from, you will recall that they seem to care about you more than the average. In every part of your business life, you will find that the significant people all have the denominator of caring as part of their character and their personalities.
The Golden Rule says to, "Do unto others as you would have them do unto you." It also says, "Love your neighbor as yourself." The Golden Rule mentality in sales, says simply, "Sell unto others as you would have them sell unto you."
Different Strokes For Different Folks What does this mean? Aren’t there all kinds of different personalities that require different approaches and techniques? Well, yes and no. Practicing the golden rule in selling simply means that you sell to other people the way you would like to be sold to. You sell with the same honesty, integrity, understanding, empathy and thoughtfulness that you would like someone else to use in selling to you.
PHOTO STOCk.xCHNG IMAGES
Seek First to Understand Wouldn’t you like a salesperson to take the time to thoroughly understand you and your situation before making a recommendation, then practice the same thing with your customers. Wouldn’t you like a salesperson
Action Exercises Here are two things you can do immediately to put these ideas into action.
to give you honest information and to help you make an intelligent buying decision, then practice the same with your customer. Wouldn’t you like a salesperson to be thoroughly knowledgeable about the strengths or weaknesses of his or her product or service, and that of his or her competitors, then you should do the same with your product or service and your competitors.
First, resolve today to sell to your customers with the same honesty, empathy and understanding that you would like them to use in selling to you. Second, take time to genuinely care about your customers, their individual needs and their unique situations. Make people feel important and they will make you feel important.
This article was written by Managing Director, Adrian Bromley of XSellerate Performance Solutions Pty Ltd. A National training and development company that provide Government Funded business programs, and authorised “Brian Tracy” Licencee for Australia and New Zealand. Adrian can be reached via www.xsps.com.au or email email@example.com or on 044 7777 011 www.linkbusiness.com.au
Business Broker 13
Getting Your Goose Finance is a specialised area and there are Set-up! Business other issues which you will need to consider when Whilst your local Bank Manager or Mortgage Broker may have helped you in the past with a Home Loan, they may be out of their depth when it comes to Business Finance.
Structure - Can loans be split secured by business and by property? One major Bank is unable to split loans.
Term - What is the maximum term the Bank will lend over? Against the business, Banks will lend up to 10 years (depending on the term of Lease). Against property, some Banks will lend up to 30 years.
Particularly, if you are purchasing a business in a specialised industry. You will need to seek the assistance of a Business Banking Manager or Finance Broker who is an expert in your industry. •
Repayments - Interest Only or Principal and Interest? Always check first with your Accountant.
Refinance - Does the Bank insist on refinance of your Home Loan? The Bank will usually lend more if you are prepared to.
There are industry specialists in all of the major Banks and Finance Brokers who specialise in areas such as: • • • • • •
Franchise Finance (including Supermarkets) Management Rights Newsagencies Pharmacies Aged Care Child Care.
“ It is critical that you choose your business
finance carefully at the outset. The correct choice will save you considerable time and money over the years ” The Banks have special lending policies for these industries and can lend between 50% to 70% against the value of the business and up to 80% against the value of residential property without Mortgage Insurance (including existing Home Loan). Other issues which you will need to consider when arranging Business Finance are: •
Borrower - Should loan be in Company/ Trust or personal names? Always check first with your Accountant or Solicitor.
14 Business Broker
Interest rates - Are the rates quoted competitive? Fixed or variable? Interest rates for loans secured by the business are usually higher than loans secured by property. Variable rate loans are usually more flexible than fixed rate loans. Always check first with your Accountant. • Fees - Are the fees too high compared with other Banks? Application Fees will be 0.5% to 1.0% of loan amount. Service fees will be $8 to $100 per month. Ask if there are any other fees applicable.
Bank Guarantee - Is there a rental bond required by landlord? This will need to be secured by property or cash.
Additional Costs - Do I have enough cash/funding available for stock, working capital, stamp duty, GST, Solicitor fees, Accountant fees, Bank fees, refinance costs, landlord costs, franchisor fees, marketing and training?
Business Plan - Should be prepared in all cases and include summary, industry profile, your background and experience, sales objectives, operations, finance, marketing and demographics.
Projections - Should be prepared for next 3 years on a monthly basis and include assumptions, sales, cost of goods, expenses, wages and net profit.
Contract conditions - These may include: Due Diligence – to verify vendor information. Finance clause - allow 21 days minimum. Acceptance by franchisor – if buying a franchise.
Approval conditions - These may include: Property or business valuation – at your cost? Keyperson insurance required for Directors. Personal Guarantees required from Directors. Right of Entry to be signed by landlord.
Approval conditions vary between Banks and may be waived if they become a problem (such as landlord refusing to sign a Right of Entry, which is common). It is essential that you are aware of the terms and conditions of your loan and all approval conditions can be satisfied. It is critical that you choose your Business Finance carefully at the outset. The correct choice will save you considerable time and money over the years. -----------------------------Derek Parsons is Director of Franchise Finance Solutions Pty Ltd. He has been a Finance Broker specialising in franchise finance since 2006. He has over 28 years experience in the finance industry. For more information visit www.franchisefinancesolutions.com.au www.linkbusiness.com.au
PHOTO STOCk.xCHNG IMAGE - RAILkING
arranging business finance, writes Derek Parsons.
Conquer CASH FLOW and unlock the key to a successful business Cash flow is the lifeblood of any healthy business, and can help you build the wealth necessary to achieve your lifestyle and retirement goals. Jeremy Dean, General Manager for Business Banking at ANZ, highlights the five key areas of cash flow management that can catapult your business to new heights.
DEFINE YOUR SUCCESS FACTORS
Often it’s easy to get carried away with the passion for running a small business, without first thinking about the factors you need for success – such as planning your marketing activities or setting sales targets. “For many business operators, finding the time to write and monitor their business plan is a challenge. A solid business plan is crucial and can provide a clear direction for the business – essentially it’s the key to success,” Mr Dean said. Setting targets for your business makes it easier to maximise the opportunities, and identify and overcome any threats earlier.
PHOTO STOCk.xCHNG IMAGE
Business planning tools and resources are available to assist, including ANZ’s free interactive ‘Plan for Success’ CD that takes business owners through the process of creating a solid business plan.
MAkE IT EASY FOR CUSTOMERS TO PAY YOU
Things can change quickly in business – and invoices and expenses will keep coming in even when the cash doesn’t. www.linkbusiness.com.au
“A delay in payment from a customer may cause a business to run short of cash and consequently restrict the ability to run the business. Managing your cash flow is essential – it’s about understanding the seasonality of business and preparing for the times when cash is scarce,” Mr Dean said. Electronic payment methods such as internet banking, EFTPOS, direct debit, BPAY® and merchant facilities are fast and convenient for both parties meaning less time is spent on cash handling.
kNOW YOUR BUSINESS ExPENSES
It is important to focus on cash flow reporting and forecasting rather than accrual outcomes as this gives you a more realistic cash flow position. If you are buying and selling on credit terms, be realistic about the time gap between when goods are sold and when payment is required and received. Your customers may “stretch” payment terms, where your suppliers or business lenders, might not be so flexible. A robust cash flow management plan can address cash flow gaps by smoothing out the peaks and troughs in the operating cycle.
MINIMISE YOUR DEBT
HAVE CLEAR PROFIT FORECASTS
It’s important to control your level of debt by using cash from the business wherever possible. In the event of cash shortages, you can speak to your bank for working capital solutions such as overdrafts, trade finance, commercial bills and business loans to meet temporary financing needs.
Business owners should have a clear picture of their operating profit at any point in time – so that adjustments can be made to resolve any issues early on.
“Completing a monthly profit forecast is a discipline necessary to the growth of any business,” Mr Dean said. “Estimate sales for the month – be conservative while making allowances for fluctuations. Remember to also estimate monthly operating expenses and assess whether there are sustainable profit margins. Otherwise, review what expenses can be reduced or how your revenue streams can be increased.” When your business has surplus funds, speak with your banking specialist about investment options including term deposits, business saver accounts or investor accounts to maximise your income generating opportunities. When looking to expand locally or internationally, the experience can be overwhelming. As a start, you can tap into resources from industry associations such as the Australia Chamber of Commerce or Industry and Austrade to gain an understanding of the economic environment. ANZ also has a super regional network of ANZ Commercial Bankers who can connect you to the right people so you can do more than banking, you can do business. Lastly, it’s important to have the right banking partner. When your business banks with ANZ, you have access to a team of people dedicated to your needs. Our Commercial Banking specialists take the time to understand your unique financial needs to provide customised business and personal banking solutions that work for you.
Visit anz.com/businessbanking to connect with your ANZ Commercial Banking Specialist today.
Business Broker 15
Is your Superannuation safe?
Superannuation is no longer used just as a nest egg for retirement, savvy business people are now using Superannuation as a financial and estate planning mechanism to secure a better future for themselves and their family. “The aim of financial and estate planning is to deliver on the promise of looking after a client’s family, while minimising any future legal disputes”, says Michael Sing, Managing Director at Michael Sing Lawyers Pty Ltd. This is relevant from a business perspective and filters through to the employee as well.
------------------------For more information visit www.mslawyers. com.au or contact msl on 07 5597 8888 or info@mslawyers. com.au.
“There are many preconceptions about superannuation that need to be corrected”, says Mr Sing. One particular misnomer is that you are able to leave Superannuation through your Will, which is not the case. When joining a super fund you are asked the question “would you like to nominate a beneficiary for your death benefit?” However, this simple question can turn into a bigger legal battle.
“It is imperative to talk to a financial planner and a lawyer in regards to your estate planning.”
The presumption is that when you nominate with your designated fund, this is classed as a “preferred” nomination, not a binding one.
The view of most super funds is that unless a valid binding death nomination is made, the trustee of the fund will make a decision on the distribution of the death benefit.
Generally, the benefit is paid to the partner of the deceased member, which has caused great angst particularly with regards to blended families. This problem has arisen in a recent case where the deceased and his second wife were directors of the trust deed. The executors of the Will were the second wife and the deceased daughter from his first marriage. A letter was written by the deceased prior to his death addressed to the Director of the trustee, advising the balance of the super fund was to be paid to the executors to be included into the estate. The question arose as to whether the letter constituted a binding or non-binding death benefit nomination? The Court held the letter was in fact nonbinding and the deceased member of the super fund cannot validly nominate a beneficiary for the death benefit payment unless it meets the requirements of the relevant trust deed and statutory regulations. “It is for these reasons that it is imperative to talk to a financial planner and a lawyer in regards to your estate planning”, states Mr Sing. “On-going involvement with these advisors, particularly for businesses, is the best way to ensure your assets are protected for the future.” ----------------------------This article was written by Michael Sing, Principal, of MSL Lawyers. www.msl.com.au
The Authority on selling businesses™ SCAN HERE
BUYING | SELLING | APPRAISALS | EXIT STRATEGIES | www.linkbusiness.com.au
PHOTO STOCk.xCHNG IMAGE
Are you looking for businesses for sale, general business information and knowledgeable advice? It’s all in one place __ on LINk’s website!
Understanding kEY TERMINOLOGY in the Sale Process
Understanding the process of selling your business can be complex
enough let alone trying to interpret the variety of unique and unusual industry terms and phrases used by your professional advisors who speak this foreign language on a daily basis , writes Sean Wolrige.
In order to demystify the process for you and to give you a greater understanding of what your advisors are meaning when they say to you “we’ll need to normalise your audited P&L to determine our EBITDA”, we have put together a list of the most commonly used terms and phrases in a business sale and what they actually mean. SAV - Stock at Valuation. The asking price for many businesses is advertised as $price plus SAV which means the buyer is required to buy the stock held by the business at settlement based on its value Add back - Also known as recasting or normalising adjustments. Adjustments to financial statements that are non-operational or non-commercial.
Business Broker - Someone dedicated to serving clients who want to buy or sell a business. Goodwill - The part of the price, not accounted for by the net value of tangible assets that covers extra qualities of the business such as the name, reputations and customer loyalty. Going Concern - The idea that a business will continue to operate indefinitely, and will not go out of business and liquidate its assets.
Adjusted Net Profit - The adjusted net profit is the actual net profit shown on the financial statements PLUS the add backs. This indicates the true profit of the business if the owner/proprietors expenses, non-cash expenses and one off expenses were left in the business.
ROI - Return on Investment is the acceptable return for your investment (that’s the net profit from the business) after you have paid yourself an appropriate wage for work performed.
EBITDA - Earnings Before Interest, Tax, Depreciation and Amortisation
Commission - The percentage amount paid to a business broker on settlement of the sale of your business.
Market Appraisal - An approximate estimate of value based on analysis of the current market place to establish the asking price for the business.
Exchange - The physical act of a buyer and seller exchanging signed legal contracts with each other. Usually performed in the presence of a solicitor. The process is legally binding and a deposit is taken at this point.
Valuation - A rigorous and methodical process of determining the current worth of an asset or a company using one or more accounting techniques. Much more comprehensive and exacting than a market appraisal.
PHOTO STOCK.XCHNG IMAGE
Business Profile Report - A document that outlines the description of the business, including its trading history, competitive analysis, financial statements and tenancy arrangements (lease).
Confidentiality Agreement - A pact that forbids buyers, sellers, and their agents in a given business deal from disclosing information about the transaction to others. Due Diligence - A thorough investigation into the claimed performance of a business, conducted by the potential buyer and/or their accountant. It involves a verification of all claims made by the business owner. www.linkbusiness.com.au
------------------------Sean Wolrige, is a Business Broker at LINk in NSW Sean can be contacted on (02) 9899 1999 or email seanw@linkbusiness. com.au
Residual Value - The estimated price that a tangible asset would be worth at resale. Vendor Financing - The buyer promises to pay the seller of the business (once a down payment is made) certain sums over a specified period of time. In this way, the seller lends to the buyer to facilitate the purchase. Hand-over Period - This is the time after completion of a business sale where the seller remains with the business in order to ensure the smooth transfer of the business to the buyer. Continued on page 30 Business Broker 17
It is market RENT or VACANT
Don Gilbert’s views on the Australian commercial rental market.
The general thrust is what we need to grow our nest eggs to have sufficient surplus to enjoy our retirement. No matter how I look at it from a business point of view: 1. 2. 3. 4.
Canberra and states have shown poor leadership in this core area; There is limited planning; government uses reactionary management; Bureaucracy is failing the country; If poor tenancy law does not kill the Golden Goose, minimum wages will.
Our politicians lack the skills and experience to manage the “big business of Government” and the responsibility and knowledge to manage an economy and the businesses therein.
Your Nest Egg for Retirement Against the backdrop, how does one separate the landlord’s share from the business owner’s share which is, arguably, the key to the “nest egg”? Where market rent is working (or it is vacant)? In Queensland there are pockets of activity which are either succeeding or there is failing. I will describe what is happening and where.
18 Business Broker
North of Brisbane is the Sunshine Coast. When credit was freely available, developers would “stick up” a building, lease individual shops to early “retirees” at double or treble market rent, then sell off individual shops to unsuspecting “investors”. Valuers capitalised unsustainable rents, with the banks lending on them. Now, vacancy levels are high, with landlord, tenant, franchise and finance “red ink” on the floor e.g. Bank of Queensland have gone back investors seeking almost $500 million due to bad loans. Poor lease structures have caused insufficient tenure and lack of lease rent flexibility. South of Brisbane is the Gold Coast, the “cowboy” capital of Queensland. Here, despite its spectacular collapses, the region has seen a leasing market operating reasonably successfully. There are casualties, but the market review process is working relatively well, causing fewer vacancies with the stakeholders suffering less thus far. Lawyers are preparing leases which afford the parties excellent security of tenure and lease rent flexibility including multiple options Eg. 3+3 years etc. to 2021 with market reviews adding considerable “value” to leases, unlike the behaviour of the A-REIT sector in Australia. i.e. rent must rise and fall to prevent “bubbles” from occurring.
Conclusion Last updated in 2006, the Queensland Retail Shop Leases Act is to be reviewed in 2012. The landlords path (lead by the A-REITs), is extremely destructive and will implode. Unsustainable lease rental income streams are embedded into the system with no end-oflease dispute resolution mechanism built into the legislation. A Mexican stand-off I understand is currently underway, which we are not reading about in the press. Rather than admit that income streams are under pressure the A-REITs are “booking” arrears as if it was income and to prop up market valuations. I believe that fully informed negotiations would see some specialty shop rents fall by +50%. Even the spectacular crash of Angus & Robertson and Colorado have not caused behavioural change. The Just Group retreating from 100 unprofitable outlets (it removes the “floor price” and prevents businesses from bidding themselves out of business and into extinction), but seemingly undaunted, retail and franchise groups line up to go broke, because they follow the herd and cannot read the market. The only way to save this industry from itself is to become a “Landlord’s advocate” for the 2012 review of the Queensland Retail Shop Leases Act 1994 and to ensure that there are meaningful changes to the legislation.
In Perth, there is some extraordinary behaviour. Market reviews are being poorly handled and there appears to be a lack of Intellectual Property shown by practitioners in the area.
When the divide between the landlord’s income and reasonable return and the tenant’s divide and reasonable return is understood, will the Goose Lay the Golden Eggs.
The market review process is definable, if handled correctly. A knowledgeable Valuer will separate the landlord’s share (and return) from the tenant’s reasonable share and return. That, together with well-structured leases and an open, informed market operating is the secret to each party enjoying their share of the Golden Egg.
---------------------------www.leaseconsultant.com.au © Copyright Donald Evan Gilbert 2011 B Com/B Econ; Dip Prop Val; Cert Med & Arbit; CPV; MRICS; Specialist Retail Valuer & Arbitrator; Val Reg No 2652 www.linkbusiness.com.au
Liann Rasera, Marketing and Operations Executive, invited me to contribute to the April edition of Business Broking Magazine under the theme “The Goose That Laid the Golden Egg!”
Is Your Business
For many people the ‘Golden Egg’ that they want from their business is a lump sum to provide an income in retirement. Peter Morgan explains what steps can be taken to maximise it.
Built To Sell?
A good start is to take advice from someone who has already done it. John Warrillow has started and exited four companies, and written a book ‘Built to Sell’ in which he shares his valuable insights by relating how an imaginary business owner, Alex Stapleton, went about it. Book Synopsis Alex owns a design business which has reached a plateau. Problems press in on him and all he wants is some more time at home, and some freedom to travel. He thought owning a business would deliver this, but instead he is almost broken. Maybe you know someone like Alex? So he decides to sell. Alex calls Ted, who is a successful serial entrepreneur, and he is happy to help. Ted leads Alex through the process of selling his business – with an eight step process.
PHOTO STOCkExHANGE IMAGE
Alex is convinced that the success of his business makes it an attractive purchase proposition. Wrong! Ted points out buyers will not invest in a business when its chief asset is planning to walk out of the door with their cheque! Unless, maybe they can tie Alex in on an earn out – and that’s not what Alex wants or what Ted recommends.
For Selling Your Business
STEP 1: Find your ‘sweet spot’ Find a service your clients find valuable and you can do really well. Then teach someone else to www.linkbusiness.com.au
do it, and make it your ‘sweet spot’ or Standard Service Offering.
serious about focusing on just his Standard Service Offering.
targets after the sale. Ted urges caution.
Ted’s Top Tips – Make the business less dependent on you so you can reduce or avoid an earn out.
Ted’s Top Tips – Ideally you will have at least two years of financial statements using the Standard Service Offering model before you sell your business.
Ted’s Top Tips – Treat the earnout portion as gravy. As long as you get what you want for the business up front, and treat the earn-out as gravy, you can walk away if necessary.
STEP 2: Get ‘Cash Positive’ Cash positive businesses are more attractive to buyers. Alex begins charging up front for his Standard Service Offering. To his delight many clients agree without hesitation. Ted’s Top Tips – Once you’ve standardized your service, charge up front or use progress billing to create a positive cash flow cycle. Ted’s Top Tips – Make your cash flow statement your most important day-to-day management report when you are preparing your business for sale
STEP 3: Hire a Sales Team Ted shares another gem. Now that you have removed yourself from Operations, take yourself out of Sales. As Rainmaker, you are still exposed to a long and risky earn out.
STEP 5: Launch a Long-Term Incentive Plan for Managers Ted stresses how important a management team can be for a purchaser. Continuity after the business is bought influences both the willingness to buy, and upfront price.
STEP 8b: Due Diligence Drama! Alex accepts the offer and the buyer sends in accountants to identify weak spots in his business. They do and propose a reduced offer, only $5.2M upfront. Alex is horrified!
STEP 6: Find a Broker Alex’s business now looks and performs like a saleable business. Now Alex needs representation.
Ted’s Top Tips – Find an adviser for whom you will be neither their largest nor their smallest client. Make sure they know your industry. Write a three-year business plan showing what is possible for your business. Think Big. The acquirer may have more resources than you.
STEP 7: Tell Your Team Ted’s Top Tips – Hire people who are good at selling products, not services. They will not want to reinvent your service offering and will sell your Standard Service Offering.
Alex knows the broker needs to set up meetings with his team for prospective buyers. To his surprise the team understand his goals and how an acquisition can mean opportunities for them.
STEP 4: Stop Accepting NonStandard Projects!
STEP 8a: Convert Offer(s) to a Binding Deal
Ted suggests that Alex stops taking projects that fall outside his Standard Service Offering. Eventually clients, employees and stakeholders realise Alex is
One buyer puts in an offer exceeding his target price by of $5M by $1M, but offering some upfront and the balance as an ‘earn out’ tied to performance
Ted expects it! Alex eventually sees it is $200,000 more than targeted when he started the process two years ago, with any earn-out as cream on top and signs. He climbs into his car and drives. An email buzzes on his phone. It’s from his bank. “Dear Alex. We’ve just received a rather large credit into your account.” Alex smiles and just keeps driving.
------------------------------Munro Accountants have seen all this many times before and are skilled at helping clients deliver similar outcomes, working closely with LINK brokers on many occasions. Give Peter Morgan a call on (07) 5539 9777 to discuss further or visit their website www.munro.com.au Business Broker 19
Don’t CHOKE the Goose that Laid the Golden Egg!
their business partners than ever before. Congratulations! with If you think I am exaggerating the risks and the
Now don’t choke it!
Sadly, many do just that before it delivers that one final golden egg that will set you up for that lifestyle you want. You have made many good business decisions along the way to create that great business income and later that lump sum but there is statistically a very good chance you will have missed or even worse ignored, some basic legal issues that can and regularly do derail your business and your retirement plans.
dire consequences then read on.
A real life example...they almost choked the Goose to death! A successful and profitable two partner agency business was almost bankrupted when one partner instantaneously terminated, by handing over a letter from his lawyer at a prearranged morning coffee. My client didn’t see it coming! Six months later after many discussions and many thousands of dollars in costs for each party, a resolution was reached. But even then, this was only after my client threatened to appoint a Receiver (and got the Receiver’s
No clear process for independently valuing the business was established; No clear agreed principles for how the partners would split the business, if that was at all feasible.
Additionally, on a similar vein the partners had: 5.
No clearly defined principles or process for selling the business if they decided to do that and take the nest egg they had built up; Not given consideration to what would happen to the business if one of them died, was critically injured and could not work or simply wanted to retire;
“Many legal issues and consequences need to be considered in detail so you can get value out of your Golden Egg and along the way you don’t Choke the Goose!” written Consent) to the business as the other party’s expectations were unreasonable and there appeared no other way to sort it out. An independent party was needed to decide what would happen to the business and when and at very significant ongoing additional cost. It was likely the business would be sold off as a whole or in bits but at nowhere near it’s true value.
The outlook for the partners......The Golden Egg is shattered! • •
They were both going to lose value heavily; The business may have actually been closed down by the Receiver with little or no financial return to the two partners or their families; The partners may have faced bankruptcy; and Their families too will undoubtedly suffer.
Not put life insurance in place or any contingency plan for “Vendor” terms to enable buy out of the deceased or retiring partner; No consideration of what a spouse might say or want in certain circumstances.
Many legal issues and consequences need to be considered in detail so you can get value out of your Golden Egg and along the way you don’t Choke the Goose!
----------------------------This article was written by Kerry O’Neill, Principal of O’Neills Business Lawyers. For more information, contact Kerry O’Neill at (07) 3849 6263 or via e-mail at firstname.lastname@example.org PHOTO STOCk.xCHNG IMAGES - ITSME1985
You have worked very hard and sacrificed a lot over many years to feed and nurture that Goose, a great and valuable business that will hopefully provide you and your family with an ongoing income or even better a big bunch of dollars that will be your retirement “golden nest egg”.
What did they get wrong here? I have many examples from just over the last two or three years when the GFC and tougher economic times hit home and business owners and partners started to argue about money, who was not working hard enough and ultimately, their ability to work together. I am seeing more and more clients in dispute 20 Business Broker
Neither party had considered an Exit Strategy or a Business Succession Plan to protect the Goose; No Partnership Agreement was in place so no agreed and clearly defined process to deal with a breakdown of the business relationship; www.linkbusiness.com.au
Business opportunities Here is a selection of businesses LINK has for sale.
photo Supplied & SHUTTERSTOCK images
For more business opportunities visit www.linkbusiness.com.au 22 South East Queensland 28 Northern NSW 31 New South Wales
The authority on selling businesses www.linkbusiness.com.au 21
Businesses for Sale - South East Queensland
Swimart - Pool & Spa Services
Stainless Steel Fabrication/Mfg
Net Profit $185,039 pa to Owner/Operator
Net Profit (PEBITD) 2010/2011 FY $132,753
• Well established franchise • • •
retail & service centre located close to new housing development Under management Strong Franchise Group with excellent support and marketing Van included with plant & equipment
• Large client database • Would make an ideal family business where everyone can be involved with and enjoy
Asking $335,000 + SAV Ref 10930 Contact Kevin Moore 0415 973 843 Guy Cooper 0431 227 644
• Long established (11 years) • •
with 3 year Net Profit average of $182,561 Primary focus in the industrial, construction and marine industries, with substantial repeat business Centrally located in major Gold Coast industrial area with easy access
• Would suit a person with a
good understanding of the industry to develop sales as the current owner has not had an interest in this area
Asking $175,000 WIWO Ref 10912 Contact Peter Jackson Ph 0418 986 991
Manufacturing Business For Sale - Under Full Management! Net Profit $496,010 Average Last 5 Years
• Established 35 years in • • • • •
central Gold Coast location Excellent name in the industry Fantastic commercial clients who offer repeat business Great management and staff in place Simple systems and procedures - this business literally runs itself! Queensland Government Registered as a Quality Assured supplier
This business is being sold for equipment value only fantastic opportunity for the astute investor! Please call Myron Plumb for more information
• Recent Laudiston’s
equipment valuation $1,242,000
Asking $1,200,000 + SAV($75k) Ref 10949 Contact Myron Plumb Ph 0415 303 370
Some images shown are for illustration purposes only and are not necessarily examples of the business’ products or services
Phone 1300 763 668
South East Queensland - Businesses for Sale
Auto Related Business
Golf Tour Business
Net Profit for owners $362,453
Established 23 years on the Gold Coast
• Established 9 years and •
Under Full Management Currently has six sites with opportunity to expand Australia-wide
• Suit buyer with panel •
• Excellent well trained staff • •
in place Sales and profitability is growing each year No lease required
beating and spray painting experience Plant & Equipment valued at $360,000
• Manage from home with no
• Huge client base Australia-
• • Only need to work a few
overheads Fantastic lifestyle business
• Asking $802,000 + SAV Ref 10866 Contact Tim Craft Ph 0411 874 452
hours per day & only eight months of the year Includes transfer vehicles and trailers (valued at $60k) Great opportunity for new owner/operator
wide offering consistent and repeat business Extremely strong cash business Unlimited growth potential
Asking $198,000 WIWO Ref 10600 Contact Myron Plumb Ph 0415 303 370
Health & Beauty Treatment Centre
Very Busy CBD Location
Under Full Management!
Under Full Management
• Established 3 years in high
• Price includes equipment
• Located in a busy Inner City
• Market leading franchise
• • •
growth area Well recognised name with no local competition Excellent staff in place Services a huge database of over 2500 clients Fantastic booking and accounting software allowing you to monitor this business from home!
worth over $100K Fantastic opportunity for owner/operator with industry experience
Vendor finance available all offers considered! Asking $98,000 Ref 10927 Contact Myron Plumb Ph 0415 303 370
Urgent Sale Required! Call me now!
where full training is provided (4 week course)
• Strong net profit with room for improvement
• No cooking involved • Solid lease in place • Up to 70% finance available
Asking Expression of Interest Ref 10919 Contact Guy Cooper Ph 0431 227 644
Some images shown are for illustration purposes only and are not necessarily examples of the business’ products or services
Phone 1300 763 668
Businesses for Sale - South East Queensland
Kaching! Coin Operated Business Net Profit $147,766 for the owner
• Very well established and • • • • •
secure business with history of good profits Same owner for last 20 years Easy business to run No employees Work when you want. Current owner works 2-3 days per week P&E valued at $360K
• No creditors, No debitors, just need to know how to count money!!!
Cash Is Definitely King with this business! Asking $500,000 + SAV($10K) Ref 10900 Contact Tim Craft Ph 0411 874 452
Southern Gold Coast Restaurant Owner/Operator will net $200K + pa
• Established over 35 years and • Menu caters to a variety 10 years by current owners
• Turnover $1 Million plus • Licensed restaurant on prime main street frontage
• Brand new 20 year lease available to new owners
• Strong patronage from both •
locals and tourists Long standing key staff
of food lovers and offers a takeaway option
Make an offer today Owners will look at all serious offers! Asking $220,000 + SAV Ref 10438 Contact Peter Jackson Ph 0418 986 991
Join Australia’s Favourite Roast & Grill Today! Franchise Opportunities Available in NSW & QLD Today’s consumers want food that’s nutritious and delicious and Bucking Bull combines the freshness and quality of traditional home cooking with the convenience and value of food court dining.
Export Business - South Pacific Region Net Profit last 3 years FY Average of $120,382 Well established export business available for sale; suitable for a visionary or visionary company that is positioned to take advantage of the excellent potential to expand this export business. Established 21 years. Double income streams. Sales & commissions. Products are
centred on “Homewares and Building industry”. Excellent consolidation agency, customs agents and shopping support. Up to 12 months take-over tuition. Asking $349,000 WIWO Ref 10911 Contact Guy Cooper Ph 0431 227 644
With a Best Practice franchise model, Australia’s Favourite Roast & Grill is providing business seekers with a stunning opportunity that delivers results. With your investment in a Bucking Bull franchise, you can experience the freedom of running and owning a business with the security of working within an established franchise system. Ongoing coaching and support programs help Franchise Owners’ businesses to continue to grow and prosper. Training provided. Some opportunities for vendor finance (conditions apply). Capital Required $30,000 - $320,000 Number of Outlets 12 Opportunities Available Queensland & New South Wales Contact Glen Dixon (QLD) 0410 517 000 Matthew Page (NSW) 0418 115 204
Some images shown are for illustration purposes only and are not necessarily examples of the business’ products or services
Phone 1300 763 668
South East Queensland - Businesses for Sale
Australian-owned brand that is loved and respected around the world! Annual Turnover start from $295,109 to $860,922 Gloria Jeans Coffees has over 917 stores in more than 37 countries. They are the fastest growing franchise, serving millions of customers every week. But there is more to their brand than these impressive statistics. There’s a culture of collaboration, for starters. There’s the family-style support network. There’s the drive to source and serve the best product around, providing customers with the ultimate coffee experience. There’s unsecured finance up to 70% of purchase price (conditions apply).
Solid Manufacturing Business Net Profit for 2011 $1,336,699
• Established 14 years & •
If this interests you, we’d love to chat to you. Capital Required $20,000 - $300,000 Number of Outlets 16 Opportunities Available Queensland & New South Wales Contact Guy Cooper (QLD) 0431 227 644 Mark Jason (NSW) (02) 9899 1999
operated by present owners for over 9 years Manufacture and installation of cabinetry/shop fitting for commercial and private clients Well established client base Associated product sales e.g. appliances, hardware, etc
• Impressive showroom in busy high traffic area
• Modern plant & equipment in excellent working condition
Asking By Expression of Interest Ref 10952 Contact Peter Jackson Ph 0418 986 991
Always Wanted Your Own Restaurant?
Exclusive business license with Quick Office Pro
Net Profit for owner $158,000
• Two year business guarantee • Sales skills required • Six months income • Enjoy ongoing passive guarantee
• Your own exclusive area • •
- which you own! With multiple locations available No need to be an IT guru as QuickOffice Pro does it all for you Easily relocatable
income from this strong and growing brand name
Asking $27,500 to $47,500 Ref 10897 Contact Guy Cooper Ph 0431 227 644
• This restaurant is located in • •
the heart of the Gold Coast in a popular, lively hub with great local and tourist trade Fully licensed, good layout and ready to suit any style or cuisine to your liking This is an opportunity not to be missed for a first time operator
• Easy to run • Good lunchtime and early •
evening trade with inside/ outside dining Many opportunities to increase business!
Asking $149,000 + SAV Ref 10880 Contact Glen Dixon Ph 0410 517 000
Phone 1300 763 668
Businesses for Sale - South East Queensland
Busy Physiotherapy Clinic Net Profit $128,000
• Established nine years in • • • •
fantastic location Only commercial practice in its suburb Great lease in place with extremely low overheads Brand new shop fit with state of the art equipment Excellent booking software and POS
• Huge client base with 2 x •
practitioners Owner leaving industry fantastic opportunity to gain new business and add to existing client base
This Expresso Bar “Sets the Standard”
• This is the ultimate in coffee • • •
Asking $150,000 Ref 10951 Contact Myron Plumb Ph 0415 303 370
culture Open 7 days per week from 7am to 4pm Clientele of repeat coffee lover aficionados Sells 40kg of coffee per week - of exclusive blend roasted beans not available elsewhere
• Serves light meals no cooking involved
• Excellent staff in place • New owner needs to have a passion for creating and making excellent coffee Asking $395,000 + SAV Ref 10942 Contact Deirdre King Ph 0451 531 614
Successful Computer Service Business
Fully Managed Computer Service
Average 3 year PEBITDA $218,500
Average EBITD $122,995
• Excellent reputation with • • • •
over 8 years trading history Great systems & support services in place Very experienced staff and qualified technicians in place Irreplaceable intellectual property, systems and infrastructure Secure cash flow
• Strong relationships with large diverse client base of reputable professional businesses and industries
• Well established authorised • •
Asking $325,000 + SAV($6K) Ref 10911 Contact Guy Cooper Ph 0431 227 644
computer & PC service provider Repairs popular branded products in or out of warranty Testimonials support the quality of this business
• All management and staff in place
• Provides excellent service,
fast turnaround and repairs are done in store
Asking $298,000 + SAV Ref 10941 Contact Guy Cooper Ph 0431 227 644
Phone 1300 763 668
South East Queensland - Businesses for Sale Huge Contracting Business! Brick Work and Block Work Annualised Net Profit Approximately $300,000
• This exclusive building • • • • •
contractor is sitting on a goldmine! Annual turnover $2.5 Million to $4 Million Established 27 years - well recognised name in SE Queensland Consistent government, military and commercial contracts Ongoing work to complete with options to tender for new jobs Excellent foreman and workers in place
For further information and details, please contact Myron Plumb
• Owner looking to retire
Asking $685,000 + SAV($5K) Ref 10922 Contact Myron Plumb Ph 0415 303 370
Manufacturing Business - Established 60 Years! Strong sales - Financial Information Supplied on Application
• Family business established 60 years on the Gold Coast • Well recognised name in manufacturing industry • Quality products and services • Recognised Australia-wide as popular household name • Prestigious three level office with huge factory premises approximately 2000 m2
• Great staff in place and the business runs like clockwork! Fantastic opportunity for an investor or company to add-on to current product range. Manufacturers of: • Garage Doors • Industrial Doors • Gates • Automatic Openers • Balustrading • Aluminium Fabrications • Structural Aluminium • Glass Brick Systems • Gate & Door Security’
• • • • • •
Glass Pool Fencing Surfboard Racks Fishing Rod Racks Bicycle Racks Traffic Bollards Boom/Barrier Gates
Asking Expression of Interest Ref 10945 Contact Myron Plumb Ph 0415 303 370
Phone 1300 763 668
Businesses for Sale - Northern Rivers, NSW The Northern Rivers Region provides a combination of dynamic agriculture, manufacturing and tourism industries, a spectacular natural environment and an unsurpassed quality of life offering an excellent place in which to invest and live. Major industry sectors include: • Agriculture • Manufacturing • Tourism • Services especially Hospitality • Multimedia • Building and Construction • Education • Research and Development
Work, Live, Play....
Northern Rivers, NSW
National Electrical and Furniture Franchise
Major Electrical Contractor
• Best location in town • Surplus space for expansion • Established 60 years • Loyal customer base • Training and support provided • Option to purchase property • Family who have owned the
• Preregistered up to a
• Services include domestic,
business for many years are ready to retire
Net Profit for FY 2011 was $325,258 (PEBIT) on turnover of $2,165,053!!!
Priced to Sell!
Asking $125,000 + SAV Ref 10992 Contact Greg White Ph 0413 876 543
value of $500K with the Department of Commerce. Major repeat customers include: Dept of Commerce, Tweed Shire Council, Brookfield, Boral, Multiplex, UGL, Transfield and local District Hospitals.
commercial, industrial, data and communication. Largest best known electrical contractor servicing from Lismore into Queensland.
Asking $790,000 (all inclusive) Ref 10953 Contact Greg White Ph 0413 876 543
Phone 1300 763 668
Northern Rivers, NSW - Businesses for Sale
Quality Bathroom and Kitchen Centre
Well Known Upmarket Restaurant
• Dominant market presence
• Prime main road location with
Substantial Net Profit to Owner/Operator
• • • •
with repeat business Excellent exposed highway position with ample customer parking All systems in place Easy to run with potential to grow Located in a great place to live
Overlooks the Beach
uninterrupted ocean views
• Reputation for outstanding • • Asking $295,000 + SAV Ref 10831 Contact Greg White Ph 0413 876 543
Must be SOLD!
cuisine Great amenity Quality fit-out with excellent equipment which would cost $450K to replace Owner absent overseas. Ideal for an owner/operator
Asking All Offers Considered Ref 10879 Contact Greg White Ph 0413 876 543
Brumby’s Bakery - Under Full Management • Prime location • Long lease with an attractive rent • Excellent income. Fantastic opportunity for an owner/operator Asking All Offers Considered Ref 10245 Contact Greg White 0413 876 543
Long Established Fencing Business • All types of retail and • Great add-on opportunity to
• • •
manufactured fencing supplied and erected Established 12 years Owned by one owner with experienced contractors in place Diversified client base with a number of major Government contracts
existing construction related business
Wholesale Packaging • Est. over 35 years. Services whole region • Extensive range of products • Loyal qualified staff. Substantial income Real Estate included in price Asking $2,750,000 + SAV Ref GW Contact Greg White 0413 876 543
• Located on major arterial road • Open Monday - Saturday and no nights • Established reputation for fine coffee Asking POA Ref 10860 Contact Greg White Ph 0413 876 543
Vendor Motivated to Sell
Asking $150,000 + SAV Ref 10855 Contact Greg White 0413 876 543 Some images shown are for illustration purposes only and are not necessarily examples of the business’ products or services
Phone 1300 763 668
LINK Continued from page 17 Heads of Agreement - They are the outline details that have been agreed by you and the buyer of your business. They can be binding or non-binding. Letter of Offer - This is a written offer by a buyer outlining what he/ she is prepared to pay and the terms and conditions they would like as part of the sale. Licensed Business Broker - A licensed business broker has undergone a higher level of training and accreditation and is held accountable to the guiding rules of behavior under the state licensing laws and must adhere to the AIBB Code of Conduct. To view this further visit www.aibb.com.au.
Finance Approval - A business contract for sale is not automatically subject to finance approval so you should ensure that your finance intended for the purchase of the business has been approved by your lending institution prior to making an offer. Contract for Sale of Business - This is a legally binding document outlining what is for sale. Restriction of Trade - A condition of sale insisted by buyers to prevent the previous owner establishing a new business immediately after sale. It is based on time and distance from previous business.
Licensee-in-Charge - The licensee-in-charge is a licensed business broker who oversees and is accountable for the day-to-day operation of the business brokerage firm. Agency Agreement - This is the vendors contract with a business broker outlining the terms and remuneration for service. The agency agreement can be exclusive, sole or open. An exclusive agency agreement means that only one agency can sell the business. A sole agreement means either the broker or the owner can sell the business. An open agreement means one or more brokers can sell the business. Assignment of Lease - This is the transfer of an existing lease from the previous owner to the new owner of the business. This needs to first gain landlord approval.
Settlement - The day on which the transfer of the business is competed and full payment is made from the buyer to the seller. Stocktake - Physical verification of the quantity and condition of all items held in inventory. I trust this has helped clarify and simplify certain terms and phrases you will undoubtedly come across when you begin the process of selling your own business.
------------------------------------If you would like greater explanation of any of these terms or others, we would be more than happy to discuss further. Call LINK on 1300 763 668.
The authority on selling busi
The authority on selling businesses
Trusted experts when it comes to selling your business www.linkbusiness.com.au 1300 763 668 Sell your business with LINK Phone Today! 30
New South Wales - Businesses for Sale
Busy CBD Location
• Sumo Salad health food • • •
franchise is one of the most innovative and successful healthy fast concepts globally Business is situated in an up-market corporate food court Huge catering potential Business has continuing growth
Cookie Man Franchise
• Open 5 days with short •
hours Good return to owner/ operator
High Traffic Kiosk
• 100% Australian concept with • Well trained staff in place • Complete initial training, with over 50 years experience • A Cookie Man franchise on-going marketing and •
Asking $275,000 Ref 10958 Contact Matthew Page Ph (02) 9899 1999
is more than a shop; it’s a dynamic business opportunity! Located in prime position in Westfield Shopping Centre Easy operations, with no early starts like traditional bakeries
• Returning in excess of $2,000 per week to owner/operator Asking $250,000 Ref 10963 Contact Matthew Page Ph (02) 9899 1999
New Zealand Natural Ice Cream Kiosk
Espresso Bar - One Man Band
Easy to Run - Inner Western Sydney
Sydney Northern Beaches
• This particular kiosk is • 50% finance available • $60k Net to owner/operator perfectly positioned in the • This business is extremely middle of a busy shopping • •
easy to run with minimum headaches Very low rent and overheads Become a part of this international franchise that has established itself for over 25 years
complex with major expansions to be completed in one month Asking $99,000 Ref 10886 Contact Simon Salotti Ph (02) 9899 1999
• This coffee has personality • Organic product with • • • •
friendly personalised service Witham’s coffee supplier Laid back northern beaches style Rent only $420 per week inclusive One person operation very simple
• Profitability $1500 to $2250 per week
• 51/2 day trading
Asking $139,000 Ref 10891 Contact Matthew Page Ph (02) 9899 1999
Phone 1300 763 668
Businesses for Sale - New South Wales
Hills Local Newsagency
On-line Fashion Retail
Owners earnings $195,000pa
• Business has thrived for
• Exclusive product range
30 years and 5 years with current owner Has 5 subagents including 3 petrol stations, 1 hospital 1 supermarket Lotteries, stationery, tobacco, cards, magazines, drinks, bus tickets, deliveries, key cutting, dry cleaning
• $1Million pa consistent sales • Exclusive territory
designed and developed
• Products sourced from China • Business started selling in October 2010
• Growing database of happy
The start-up work has been done and the business can now achieve growth.
Asking $395,000 Ref 10968 Contact Sean Wolrige Ph (02) 9899 1999
• Can be operated from any location
• Website up and running
Asking $125,000 + SAV Ref 10896 Contact John Bentley Ph (02) 9899 1999
Coffee & Cakes - Inner West
Restaurant with Wine Bar/Cafe Potential
• Serving Organic Coffee and
• Vendor is not hands on
• Nets Owner/Operator $108K
• New 4 + 4 year lease • Rent only $895 pw
• • • • •
Gluten Free muffins, etc (baked on-site) Very low cost of goods due to on-site baking Short hours (8a,-3pm) DA Approved from 6am-5pm Turnover $8,000 PW Rent $374 PW (all included) Lease 3 + 3 Years
Great looking site. Potential to open longer trading hours.
Sydney Eastern Suburbs
• Asking $280,000 Ref 10937 Contact Mark Jason Ph (02) 9899 1999
with customers and hence business is easily transferable Huge weekend breakfast and lunch potential Gorgeous fit-out and lighting makes this place a favourite with a loyal bunch of clientele
• Turnover $620K pa
Must Sell Quickly! Asking $95,000 Ref 10910 Contact Mark Jason Ph (02) 9899 1999
Phone 1300 763 668
New South Wales - Businesses for Sale
Retail Sunglass Outlet Under Management training provided • Authorised retailer of Gucci, •• Full Latest POS system to Dior, Armani, Diesel, Marc Jacobs, Carrera sunglasses
• Located in very popular Inner West outlet shopping centre
Asking $79,000 Ref 10969 Contact Sean Wolrige Ph (02) 9899 1999
Award Winning Franchise Choice of two (2) Sydney locations
• Nets owner $165,000 Under • • • •
Management. More if Owner/Manager No industry experience required Proven Franchise group with strong Franchisor support Lucrative industry boasts exceptional growth Finance available
• Independent mechanical
years providing a solid ROI
Management Very easy to run business
Radiators, Batteries & More - Western Sydney
assist tracking sales data, stock control and financial management
• Consistent sales over last 3
• Currently running store Under
Mechanic Repairs & Services repairs and services specialising in radiators, batteries, tyres, exhaust, suspension & brakes Est 20 years in same position This very profitable business will suit a new owner with strong mechanical and management skills
• Large margins, huge profitability
• 2011 Net to owner/operator total: $361,844
• Established 20 years in same position
• Freehold available Asking $850,000 Ref 10822 Contact Matthew Page Ph (02) 9899 1999
Gourmet Pastry - Baking & Distribution
• Prime locations • Multiple revenue streams
• Excellent growth in turnover each year and not at its peak
• Includes all recipes, customer data for 70+ retail clients
• Good rent and facilities • Only 5 days per week operation
Asking $490,000 + SAV Ref 10740 Contact John Bentley Ph 0418 288 117
• Contract driver does deliveries
Asking $419,000 Ref 10863 Contact Peter Gordon Ph (02) 9899 1999
Phone 1300 763 668
Businesses for Sale - New South Wales
Iconic Bondi Beach Cafe/Restaurant Sales approximately $2 Million per annum
• Business first opened in • •
1958 and is still going strong today Owners earnings $550K Fully licensed serving their renowned cakes, pastries and European cuisine
• Owners willing to stay on to help manage the business
First Time On the Market in 50 Years!
Asking $995,000 + SAV Ref 10894 Contact Sean Wolrige Ph (02) 9899 1999
Spectacular Lakeside Restaurant Investors Dream - Great ROI!
• Owner works 10 hrs per week • Net Earnings $200k pa. Full • • •
financials available Idyllic location on the water in beautiful Central Coast Highly regarded restaurant and wedding function centre Excellent growth potential in lucrative wedding receptions
Own this Amazing Lifestyle Business Today!
Sub Franchise Opportunities All located in the Newcastle area
• Four locations to choose •
• Existing installation team
These franchises are an ideal quality return on investment with minimal input or as a stable earner for those entering the industry who have no experience and/or know how to prosper as an independent. Asking $200K to $650K Ref Contact Matthew Page Ph 1300 763 668
Gloria Jean’s Coffees Windsor Area • Prime position • Nets Owner/Operator
Asking $465,000 + SAV Ref 10868 Contact Sean Wolrige Ph (02) 9899 1999
from Located 160 kms north of Sydney in the heart of the Hunter region and bordered by coastline & beautiful beaches
$144,829 (2011) $134,698 (2010) Long lease with only 13% rent. Strong sales growth ($568,000pa) Up to 70% unsecured finance available. 100% full finance
Owner looking for a Quick Sale!
Asking $470,000 Ref 10909 Contact Mark Jason Ph (02) 9899 1999
Phone 1300 763 668
Business For Sale
Business For Sale Blue Chip Body Corporate Maintenance
Highly Respected Transport Company
2011 EBITD $2,067,741
2011 T/O $14 Million+ EBITDA $2,722,999
One of the most professionally managed maintenance and services business in SE QLD. Successful business established for over 20 years. Modern fleet of well maintained vehicles. Major Corporate contracts in place. Large and loyal blue chip customer base. Dedicated management and team of qualified staff. Well positioned to capitalise on future growth opportunities.
Successful specialised transport services business established over 30 years. Large modern fleet of well maintained vehicles. Efficient distribution via express line-haul. Dedicated Management and staff in place. Large and loyal customer base providing strong stability.
Asking $5.4 Million Ref 10965 Contact Guy Cooper Ph 0431 227 644
Asking $6,250,000 + SAV Ref 10972 Contact Chris Cooper or Guy Cooper Ph 0403 865 959 0431 227 644
Business For Sale Manufacturing, Wholesale, Distribution Business EBIT $502,593 average over past 31/2 years • Family business - Established 20 years in Brisbane • Annual turnover $5,000,000 plus • Operates 5 days per week - excellent production manager, sales team staff in place • Extensive product range with strong brand recognition • Recognised leader in marketplace • Business to Business only - huge chain store clients • Simple systems and procedures - this business runs itself! • Central location with impressive factory and facilities • Large premises with plenty of room for expansion • Includes plant and equipment of approximately $350k • Solid return on investment • Strong potential for future growth • Fantastic opportunity for a new owner to reap the rewards and plan for a comfortable retirement! Asking $850,000 + SAV($400k) Ref 10979 Contact Myron Plumb Ph 0415 303 370 Some images shown are for illustration purposes only and are not necessarily examples of the business’ products or services
SINESS A OC I A T I ON
SMALL BUSINESS ASSOCIATION OF AUSTRALIA Small Business Association of Australia is a membership based organisation.
Besides providing excellent networking opportunities its two main objectives are to reduce small business failures and to provide a pathway of support to business owners who are either experiencing problems within their business or who have failed. We will show you how to avoid the pitfalls and will provide you with the tools to make you successful, to grow, to develop and to prosper. Our workshops are FREE to our members that are conducted twice per month from March to November and will cover every aspect of small business.
To find out why you should become a member visit us on www.smallbusinessassociation.com.au
Quality ISO 9001
DATA - VOICE - VIDEO - MOBILITY - CARRIAGE - SERVICE
The authority on selling businesses
T: +61 7 5592 2682 I F: +61 7 5592 2683 E: email@example.com
Published on Apr 30, 2012
LINK is proud to bring you their eighth Australian issue of Business Broker magazine featuring articles with up-to-date information from ind...