FAQ from prospective Sellers

Q: What’s my business worth?

A: The truth is your business is only worth what somebody is prepared to pay for it today. We track sales across a wide of variety of industries and utilise a variety of valuation techniques, but in the end the final price will be determined only after the sale contract is signed.

Q: How long will it take to sell my business?

A: Normally it takes between 3 and 6 months to sell a business however this can vary depending on the industry and the prevailing economic environment.

Q: Is it a good time to sell?

A: A quality business will always sell. However if we don’t think you’re ready we won’t pull any punches - we’ll tell you why and what we think you need to do to get the best possible price within your capital and time limitations.

Q: Can I sell my business without my competitors, customers or suppliers finding out?

A: It’s difficult to sell a secret and if your business operates in a space with very few competitors, chances are people will find out. We take every precaution to screen all enquiries and require every prospective buyer to sign a confidentiality agreement prior disclosing the business name. No identifying or commercially sensitive information is forward to any prospective buyer without your OK.

Q: How do you identify potential buyers?

A: We maintain an extensive database of prospective buyers and business contacts. Our research analysts put together lists of prospective buyers and together we work with you to select those with the most promise.

Q: When do I get paid?

A: It’s usual for the Seller to receive the majority, if not all, of the sale proceeds at the time of settlement, ie: the effective date of sale. Sometimes a part of the proceeds may be withheld because they are linked to future performance [earn out] or the satisfaction of specific warranties to the sale contract.

Q: What are the taxation implications of selling my business?

A: If you have owned the business for more than 12 months only 50% of the taxable gain is included as assessable income. There are further taxes concessions depending upon the size of the transaction and if it is part of a retirement. We work closely with your accountant to try and reduce or defer the tax payable.

Q: Do I have to stay after the business is sold?

A: This really comes down to you. Generally there is a handover period with the buyer and this provision, although not essential, increases the Buyers confidence that they can effectively run your business.