“In the past few months, we’ve noticed a more deliberate approach to transactions,” Vince observes. He expertly attributes this to bank finance becoming more stringent as of late, impacting the pace of deals. Despite the softened speed of business sales, buyer enquiry remains strong, proving that demand for quality businesses is very much alive.
Vince provides some insight to sellers to help move these deals beyond initial interest. “First and foremost, you should carefully price your business from the outset,” he says. “It’s essential to realistically evaluate current financial performance against previous years’ figures. A well-calibrated pricing strategy can and will attract qualified buyers even in a more cautious market environment.”
Vince also encourages sellers to leverage current market conditions effectively. “It’s crucial to demonstrate the resilience and profitability of your business,” he advises. “Highlighting consistency and potential for growth can instil confidence and drive competitive offers from serious buyers who recognise long-term value.”
Working with an experienced business broker early on will help sellers to best position their business for a successful sale. “Simply put, if you want to maximise your business’s value and ensure its legacy is handed to a genuine buyer, aligning with LINK’s industry experts is the only way.”
Across the LINK Australia network, many exceptional businesses have come to market as baby boomers enter retirement. Although the current market conditions may seem tough to navigate for buyers, Vince expertly predicts that these trends will translate into advantageous buying opportunities for savvy investors. “For prospective buyers, the period we’re in right now presents a great opportunity to secure valuable assets at potentially favourable prices,” he says. Those who have the funding available stand to benefit significantly.
On the other hand, for aspiring entrepreneurs who may not have the capital, working with a finance broker who specialises in securing funding for business transactions is vital. “Finance brokers are an invaluable tool that should never be overlooked, engage with one well in advance of purchasing a business and this will set you on a path to a successful acquisition.”
Looking ahead, Vince remains optimistic about the resilience of Australia’s business sector. “The fundamentals of many businesses remain strong, and Australians are enthusiastic about pursuing ownership, whether it’s their first business or portfolio diversification,” he remarks. “Strategic investments made now could yield substantial returns as economic conditions stabilise.”
While the current business scene has its challenges, it’s important to understand that it certainly offers golden opportunities for those prepared to navigate it wisely.
