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  • #966073
    CashflowAddiction.com
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    Yeah it’s been a little while since I posted but I’m surprised…. there isn’t a thread on flying solo about selling your business.. whether its a fast sale or a new venture requiring your time or just time to retire.

    What were the most effective ways you’ve used to sell a business?

    Brokers? (used car salesman I’ve been told)
    Business-for-sale websites? ($99 and UP!)
    Local or city newspapers?

    Love to hear everyone’s thoughts as I have to clear out before my new dealing suffer from the lack of focus…

    Cheers!

    #1015838
    [Former] FS Concierge
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    Hi Ross

    You’re right – I can’t find any other threads about selling a business either. Hope we can get some good discussion going, but in the meantime, you may like to check out these articles:

    http://www.flyingsolo.com.au/p228654041_Business-succession-planning-Developing-an-exit-strategy.html

    http://www.flyingsolo.com.au/p239443567_Exit-strategies-is-it-right-to-quit-your-business.html

    Looking forward to hearing big news from you soon!
    Jayne

    #1015839
    Grant
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    Hi I am a new member and have just registered on Flying solo.
    For those of you who wish to appraise your business I have set up a website that will value your business instantly on line.
    The businesses must fit into the parameters but I have designed it to be easy to use.
    Please go to http://www.diyduediligence.com.au.
    It also has a good free resource on the buying /selling page that will give the main things to look at when buying or selling a business.

    #1015840
    YoungNomad
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    There are a few different ways to sell your business – the most cost effective is to engage an independent valuer to firstly value the business based on current market demand etc.

    Secondly is to appoint either a broker, or an agent (in some cases this can be your accountant … sounds funny, but for instance my accountant works primarily with small / medium businesses, and can act as an agent).

    The cost base is generally;

    1. Preparation of paper work / accounts etc – 5-10k
    2. % of sale value – anywhere from 1.5 – 3%

    From previous experience brokers usually charge around the 3-5% mark, depending on industry and experience.

    You can always bypass the above by obtaining the valuation, and then negotiating directly with potential buyers (ie: if you’re in real estate and looking to sell your rent roll, you can draw up a confidentiality agreement, and approach the principals of the main agencies etc).

    The golden rule is a water tight confidentiality agreement.

    #1015841
    MattR
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    Valuing a Small or Micro Business is sometimes cost prohibitive, and almost always its purely subjective.

    I was at an accounting seminar last year when this topic came up and the speaker, whom I won’t name but is well known in accounting circles, said of it..”..sometimes its more what the current owners will accept to walk away from the business, rather than what the business is worth…that determines price…”

    #1015842
    King
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    when we bought a business the broker charged the seller 6% of the sale price, including stock. He did nothing but confuse the issue and almost lost the sale for both parties.

    Talking to your accountant would be the first step however you want to sell. They have a range of factors they look at to help you arrive at a business valuation price, as they do when helping the buyer assess if the asking price is fair.

    #1015843
    gracie.sia
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    I’m thinking of organising a ‘businesses for sale’ area in the Flying Solo forum. Email me for a link cos im yet to start a post on it!

    #1015844
    Anonymous
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    Hi CashflowAddiction.com and FS Concierge

    Quote:
    there isn’t a thread on flying solo about selling your business isnt quite accurate, maybe not quite what your looking for but try this one
    #1015845
    JacquiPryor
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    King, post: 36402 wrote:
    Talking to your accountant would be the first step however you want to sell. They have a range of factors they look at to help you arrive at a business valuation price, as they do when helping the buyer assess if the asking price is fair.

    Just to echo King here, accountant would be the first step, absolutely. I have visited DIY Due Dilligence website, and can see that allowance is made for “goodwill” – inclusive of copyrights/patents etc – but there are various methods and approaches to determine an appropriate value of intangible assets, ensure your accountant is familiar and knowledgeable in valuing these adequately and appropriately.

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