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  • #1000181
    norm1981
    Member
    • Total posts: 2

    Hi i am new here and am looking for an exit strategy
    And dont know where to start
    I have a business turning over 800000
    net profit is 350000-400000 for the last 3 years

    600000 grand worth of assets

    How do i value my business and what should i ask for

    I own the property and wish to sell the business and lease the factory out to a new owner

    factory worth 1.1 mil

    Anyone able to help me out on this one

    Or any advice on who to ask

    you people are the best

    #1223288
    James Millar
    Participant
    • Total posts: 1,703
    norm1981, post: 269831, member: 117914 wrote:
    Hi i am new here and am looking for an exit strategy
    And dont know where to start
    I have a business turning over 800000
    net profit is 350000-400000 for the last 3 years

    600000 grand worth of assets

    How do i value my business and what should i ask for

    I own the property and wish to sell the business and lease the factory out to a new owner

    factory worth 1.1 mil

    Anyone able to help me out on this one

    Or any advice on who to ask

    you people are the best

    What did your accountant have to say about it?

    Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900
    #1223289
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,175

    Hi and welcome to Flying Solo [USER=117914]@norm1981[/USER]

    It sounds like you have a great business there.

    I suspect you need three or four types of advice.

    A business broker will be able to assist you in finding a valuation for the business – call a few and ask lots of questions, then compare notes.

    Do some independent research on the internet around valuations.

    A commercial real estate broker will be able to advise you of market conditions for the factory including lease amount and length of lease etc

    A lawyer specialising in commercial real estate will be able to advise around special conditions of the lease, but you may find that the real estate agent is able to provide sound advice here too.

    An Accountant can give you some advice around tax planning which given that the laws can be nuanced in this area, could mean a lot of $$$ for you now and in years to come.

    Please come back and let us know how you go.

    Cheers

    #1223290
    norm1981
    Member
    • Total posts: 2

    accountant said
    could be 5 mil

    But highly doubt it
    and dont take less then 3

    I just dont see how it could be this much

    #1223291
    James Millar
    Participant
    • Total posts: 1,703
    norm1981, post: 269841, member: 117914 wrote:
    accountant said
    could be 5 mil

    But highly doubt it
    and dont take less then 3

    I just dont see how it could be this much

    How did they draw that conclusion?

    Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900
    #1223292
    Paul – FS Concierge
    Keymaster
    • Total posts: 3,175
    norm1981, post: 269841, member: 117914 wrote:
    accountant said
    could be 5 mil

    I believe you would get better advice if you contacted a number of Business Brokers, especially any that had recently sold businesses in your industry, near your location.

    #1223293
    Dave Gillen – FS Concierge
    Keymaster
    • Total posts: 2,556
    JamesMillar, post: 269842, member: 5318 wrote:
    How did they draw that conclusion?

    [USER=117914]@norm1981[/USER] as James has hinted, it’s important not just to get a valuation, but to understand how it’s been calculated. That way you can explain the value to the buyer – because it’s only worth that amount if the buyer agrees with you.

    Dave

    Dave Gillen - Client Acquisition | Brisbane | (07) 3180 0288
    #1223294
    Stevenung
    Member
    • Total posts: 1
    norm1981, post: 269841, member: 117914 wrote:
    accountant said
    could be 5 mil

    But highly doubt it
    and dont take less then 3

    I just dont see how it could be this much

    Lol, you were right to doubt your accountant. That’s an outrageous valuation at 5mil. At 400k per annum profit, 5mil will be over a 10x multiple – publicly listed companies aren’t getting this.

    The valuation is going to be based on a number of factors including the type of industry you are in, how easy is it to run your business, competition, risk, what similar businesses are selling for, how much of the goodwill is attached to you etc and of course the financials are important too.

    Feel free to send me a message.

    Steven Ung
    Business Broker
    0427 978 477

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