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Tips on choosing the right agent

What should you consider prior placing your business for sale with an agent?
 
The sale of your business asset is one of the most important decisions that you will make. Choosing the right representative to sell your business, can make the difference to a smooth transaction or a painful and costly experience.
 
Careful planning of our your exit position and timing to ensure that the business has time to work on all competencies, so that the revenue and profit has increased the opportunity to greater influence the purchase price. A good strategy is to start preparing at least two years ahead of placing the business on the market. Having an experience M & A advisor during this period will assist in steering you in the right direction.
 
Before you decide to sell the business, its  imperative that you have your financials in order and up to date and an information memorandum prepared. Templates are available on the internet or it can be prepared by your agent. The document needs to be clear, concise and to the point.
 
Once a prospective purchaser peruses the IM and there is a strong level of interest, the document will be passed onto his or her accountant, financiers and legal advisors. The information will need to written in a format within the context of your audience. A purchaser may become emotionally attached to the business but you can be sure that his or her team of advisors will keep things in check. Any offers will be based on the facts, not feelings. The more concise your information is, the quicker the decision.
 
Your solicitor and accountant will be actively involved in the transaction and will be required to assist in answering complex questions from the buyers side. Its important that you instruct them to be co-operative and proactive in assisting you to obtain a positive result.
 
We generally advise any prospective sellers that they should operate their businesses as if at any moment, a prospect may knock on your door for an acquisition and the management structures should be in place to ensure a smooth transition.
 
Dependant on your industry, prospective buyers will typically examine the history of the business, future sustainability and growth.
 
Whether you decide to place the business for sale on the market with a price or as an expression of interest, it important that you price the business right. Going to the market with inflated expectations will only create disappointment. To work out the value, it would be wise to obtain an independent market appraisal from at least three Mergers & Acquisitions houses on the current market value and strategies on how to structure the sale to gain maximum value.
 
Prior to listing the businesses for sale with a facilitator, request references on his or her experience in working closely with buyers and sellers transactions of your size business.
 
Additionally, it equally important to obtain references from other professional advisors including accountants, solicitors, stockbrokers, private equity specialists, tax specialists that have previously dealt with your facilitator. Each party works from their own perspective and your facilitator will require the skills and experience work with each party from both sides of the transaction and keep the harmony alive. This can entail complex negotiations and problem solving with a realistic and solution-focussed mindset.
 
By implementing key strategies, your facilitator should be in a position to assist you in maximizing your business' value, by structuring a tailored marketing campaign to suit your market position and to the right audience. This improves your chances of dealing several potential purchasers, rather than being forced into negotiations with only one prospect. It is important that your facilitator deals only with pre qualified prospects, upon their signature of a confidentiality agreement and your approval prior to releasing your business details.
 
It may be an idea to be a secret shopper and contact the facilitators office to enquire about a listed business. This will give you and indication of how the facilitator qualifies prospective buyers and protects a business confidentiality.
 
At a listing meeting, most facilitators will discuss their past successes. It is equally important to ask them about some of their failures and how deals collapsed. This could give you a good insight into the integrity of your facilitator and also give you a guide on what not to do when selling your business.
 
The most important key to engaging a facilitator is the level of trust. From the facilitators perspective, most want to feel they are marketing a business with proven financials, owner transparency and within a realistic price range. Equally, a business owner wants to know that he or she is not wasting time with unqualified buyers, an unmotivated facilitator and very little communication. Establishing trust on both sides will give both parties a level of comfort that they are in safe hands.
 
You should demand consistent communication and market feedback. Even if the news from the market may not be so good, it is important that you and your facilitator have a transparent relationship to work through any challenges and move towards a positive commercial outcome.
 
The key reasons that a business does not sell are price, contract terms & conditions and poor communication between the parties.
 
An experienced facilitator will be able to guide you through each of the processes of selling your business and advise you of any potential pitfalls before they happen.
 
Depending on your industry, most buyers fall into one of the following categories:
  • Public companies
  • Private companies
  • Private investors
  • Former CEO
  • Business migrants
  • Private equity firms
  • Seasoned operators
The right facilitator should have established networks in each of the above categories and able to quickly draw on resources to ensure that your business is being offered to the right audience.
 
Anthony Glinatsis is the Director of TGBN Mergers & Acquisitions and is based in Sydney www.mergersandacquisitionsaustralia.com.au
 

Investing in Property

We are delighted to inform you that we have expanded our business to incorporate a new investment area. As you are aware our main focus has been in Business Sales, Mergers and Acquisitions and this new area will compliment our property division with not only providing our valued clients with access to "Commercial Property" opportunities but also "Residential Property".


We feel that the current property market especially in the residential sector in Sydney is proving a key stratgic area to invest in. The current residential rental market with the large shortfalls in property is proving to be very strong especially in Sydney, with the rental yields being very attractive to investors. We feel that our valued clients should be made aware and informed of these opportunites.

The properties we are offering are located in strong rental suburbs across the Sydney metropolitan area that have been researched and are found near to the following:

  • Infrastructure (current and future)
  • Hospitals
  • Schools
  • Shopping Centres
  • Lifestyle zones
  • Transport


The properties on offer range from prices of $320,000.00 to $1,450,000.00. The developers have a strong track record in completing their developments as well as delivering a good quality product.The properties on offer are either "off the plan", "semi complete or" completed".

The NSW government currently have on offer an incentive for investors to purchase residential property to take advantage of these "stamp duty concessions" for property that is purchased "off the plan" and up to the value of $600,000.00. This equates up to a saving of $22,490.00 in stamp duty to the investor who purchase's property that is being marketed "off the plan" and is prior to any construction having commenced. As you can see this is a great opportunity to purchase in this price range and take advantage of these savings.

To view our current opportunities in property click here

 

TGBN Consulting Services

  • Do you want to take more money home?
  • Do you want to gain and keep more customers?
  • Are you interested in turning your customers into raving fans?
  • Do you want to bring out the best in your staff?
  • Would you like to improve your management and leadership skills?
  • Do you want to learn simple and effective marketing strategies for your business to get more clients?
  • Do you want straight forward advice on how IT, social networking, search engine optimization and other technology can assist your business to grow?
  • Do you want new cost effective tools to market your products or services and gain maximum impact?
  • Do you have a consultant, coach or mentor to guide you through growing your business or dealing with downturns?
  • Are you looking for ways to simplify doing your accounts?
  • Do you want to learn key elements and strategies to make your business very valuable to investors in any market?

In today’s global economy, business is changing so rapidly that it can be very difficult to know what direction to take. We can assist you to work from a position of clarity and certainty in your decision making process.

A key step in our process is to work closely with you to figure out the problems that are keeping you from being the best you can be. We will get to the cause of what is stopping you, from getting the best out of your business and the strategic steps that need to be taken.

We guarantee trust in our relationships. If we are unable to assist you due to unforeseen issues, we will be upfront in explaining why.

Our consulting service brings together the some of the finest brains in the country and opens the door to a brand new network of some of the best business operators in Australia. It is a relatively low cost investment into the future of your business. .

We offer you a free 15 minute telephone consultation to discuss your business right now. Call 02 9929 3036 or click here

 

We pay it forward every day. When you engage in our services, a percentage of our fee goes to people who need to get ahead via small business assistance and micro loans via different registered charities or, we will happily donate to the registered charity of your choice.

 

 

Looking to Buy a Business?

Our Acquisition service takes the hard work out of finding the right business. In engaging in this unique and specialised service, we research the market on your behalf to identify and target businesses in accordance with your specific requirements. Whether it is a business that you would like us to make a direct approach or an industry, location or particular size of business, we can assist you to find the right opportunity.

To discuss your requirements, please call 02 8001 6491 or Click here

 

Investment Opportunity Health Care Facility NSW, Australia.

Our client has developed a unique private healthcare model that delivers environmentally sustainable and ambient facilities for the Healthcare Industry.

Our client is targeting the roll-out of approximately 9 facilities in Australia over the next 7-10 years. The first of which is in country, New South Wales -located directly opposite
Area Public Base Hospital and Region Base Hospital cancer services. The region serves more than 350,000 people.

The plans are already DA approved and building could commence immediately.

Our clients team of leading architects, environmental experts, engineers and doctors have researched and gathered these design principles from around the world to create Healthcare Villages which comprise

private hospitals / day surgeries,

self and aged-care facilities,

ousing, residence

Medi Hotels & Retail

The overall project embraces 2 phases each of which comprise more than one project. Our client is seeking a partner to finance the first project in regional New South Wales. Our client also wishes to enter-tain discussion relative to the succeeding projects in phase 1 and the overall roll out of phases 1 & 2.

For further information on this unique opportunity register here
or
call 02 9929 3036. Natalie Tanne M 0414 285 286 Anthony Glinatsis M 0411 555 251

 

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