It may feel like there’s not a whole lot to be optimistic about in the current market. However, Farzin Hesari, Director of LINK Business Brokers Australia, is here to challenge that notion and provide some much-needed expert insight and inspiration for business buyers and sellers.
Over the past few months, Farzin notes that business buyer enquiry has skyrocketed as a result of investors pulling away from the residential and commercial property market. Those from a diverse range of backgrounds and price brackets are seeking better opportunities with less risk. “People are looking to supplement their income and grow through acquisition, hence the increased activity we’re seeing,” he says. The elevated interest in what’s on the market highlights Australia’s undeniably active, diverse and healthy business climate.
These current trends indicate that investors are getting serious about purchasing businesses to secure their futures. “As the search for quality businesses intensifies, we’re seeing multiple offers being placed on high-value businesses, which is organically increasing the final selling price,” Farzin explains.
So, with this in mind, vendors can feel reassured that now is a great time to sell. However, Farzin stresses the importance of treating the business selling process as a journey, not a race. “Obtaining a well-prepared set of financial records from your accountant; ensuring your lease is accurate and doesn’t raise concerns, as well as considering any questions that may arise regarding legal, taxation, HR and exit timelines are all key areas to focus on when it comes to readying your business for the sale you deserve,” he says. All good ideas begin with a well-thought-out plan; and selling a business is certainly no different!
Time and time again, business buyers tend to look for the perfect business… but that doesn’t exist! Farzin offers some expert advice for buyers to help them navigate the process more realistically. “Purchasing a business is a significant decision, so it certainly pays to commit to an industry that you have a passion for or even existing skills in,” he says.
In order for prospective buyers to reach a decision regarding their ideal business venture, there are a few questions you can ask yourself, such as: What type of work/life balance do I want? What am I willing to sacrifice to increase my earning capacity? What rewards do I expect from the sacrifices I will make? Do my preferences align with hands-on work or a more operational role? The big picture starts to become much clearer once these questions are answered.
Despite rising interest rates and inflation, Farzin feels confident that buyers and sellers alike shouldn’t be discouraged from taking control of their futures and being rewarded for their hard work.
If you’re interested in buying or selling a business, get in touch with LINK’s experienced business brokers for a free, confidential chat today on 1300 763 668.
