The market is full of opportunities—but only for those who know how to structure a smart deal. Australia’s business sales landscape continues to evolve, presenting both challenges and rewards for buyers and sellers alike. Despite economic fluctuations, momentum remains strong.
“There is a lot of activity,” says Rebecca Ullman, Chief Executive Officer of LINK Business Sydney. “The market remains quite buoyant, and retirement continues to be one of the primary drivers for sellers.”
Selling a Business? Preparation is Everything
If you’re a business owner thinking about selling, preparation is key. The best deals don’t happen by accident—they’re carefully planned. Beyond just knowing when to sell, ensuring your business is financially prepared is critical.
Here’s How to Make Your Business Attractive to Buyers:
- Have at least three years of financials ready.
- If relevant, review your lease. Favourable terms, remaining tenure and extension options is ideal.
- Maintain supplier contracts.
- Build a forward order book to show future earnings.
- Consult an accountant early to understand your personal tax implications.
“Make sure that you have your financials in order and that you’re ready to answer any questions quickly,” advises Ullman.
And remember—structuring the deal to meet your broader personal and financial goals is just as important as the final sale price.
“The money is clearly important, but it is not the only factor. There are literally hundreds of different ways to structure a deal, and the best dollar amount is not always the best outcome.”
Buying a Business? Set Realistic Expectations
For prospective buyers, one thing is crucial to understand: there’s no such thing as a perfect business at a bargain price. Highly profitable businesses that require little to no owner involvement are rare—and when they do come to market, they are at a price premium.
To make informed decisions, buyers should:
- Accept that no business is ‘perfect.’
- Conduct thorough due diligence.
- Engage a lawyer who specialises in business sales.
- Work with a finance broker early to understand borrowing capacity.
“It is essential that you use a lawyer who specialises in the buying and selling of businesses,” Ullman emphasises. A lawyer experienced in business transactions can identify key risks and facilitate a smooth acquisition. Similarly, securing financing should go beyond just the purchase price—buyers need to consider working capital and operational costs as well.
Timing the Market vs. Making Smart Moves
Rather than focusing on whether it is a generically good or bad time to buy or sell, the key lies in understanding fair market value and strategic value. Economic factors like bank lending, interest rates, and consumer spending play a role, but working with trusted professional advisors and an experienced broker will ultimately determine success.
Working with experienced business brokers and advisors can significantly impact transaction success. Their professional guidance will help to:
- Navigate complex negotiations
- Structure deals advantageously
- Identify potential risks
- Ensure compliance with regulations
Whether you’re buying or selling, the key is not to wait for perfect market conditions but to prepare thoroughly and move forward strategically when the opportunity aligns with your goals. In business transactions, as in business itself, success often favours the well-prepared.
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