At the start of 2014 I made the decision to find two good businesses each month to offer to the market for sale. I visited many of the local Accountants and explained what I was looking for. I was looking for good small businesses, (preferably franchises) that would sell in the $400,000 to $750,000 range. I had chosen this range because I felt that the banks would be more inclined to lend at this level provided that the business could handle the repayments.
Most accountants felt that it was too early in the recovery phase for their clients to present themselves to the market. They felt that Buyers would be looking for at least 25% return on their investment based on the last 3 years of trading, and few of their client’s businesses had shown much profit in the 2010-2011 and 2011-2012 financial years. This would obviously result in low average profit levels which would in turn command much lower sale values. Put simply, they all thought that it was far too early for their clients to sell. After a number of similar discussions, it became obvious that many small business owners would need guidance and help to prepare their businesses for eventual sale.
I then set about looking for businesses with older owners who might welcome the help of an experienced Broker as they prepared for their exit from the business. I soon found a few and we are now beginning to prepare these businesses for sale. The literature provided by Benchmark has made it easy to provide much quality information already, and I am establishing regular planning meetings with several businesses that I hope will ultimately list and sell. My Accounting qualifications and many years of experience in selling businesses have proven to be valuable resources in assisting these business owners to maximise sale values.
I believe that in time I will have a selection of quality businesses for sale at fully justifiable prices.
John Dawkins – Sunshine Coast SpecialistFIND OUT MORE ABOUT THIS BUSINESS