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FOR SELLERS
15 STEPS FOR A SUCCESSFUL BUSINESS SALE
1
We start with a full assessment of your business, which involves a thorough and in-depth analysis of all aspects of the business.
2
Provide you with a 'selling range' for your business and discuss your expectations of sale price.
3
Recommend an asking price and a marketing strategy, in order to achieve a sale at a premium price point.
4
Sign an 'Authority to Sell' agreement which authorises us to act as your business broker.
5
Prepare all the necessary documentation, complete with all the details that a buyer will require.
6
We list your business on 10 business sales sites along with our own top rating website.
7
We search our extensive database for potential buyers and make email contact with likely prospects.
8
Before we provide any information on your business, we require all potential buyers to sign a binding Confidentiality Agreement.
9
Carefully qualify and screen all buyers to make sure they have the financial ability to purchase the business. We arrange a meeting with the buyer and our finance broker if required, and keep you informed about all potential buyers so you know exactly how the sales process is progressing.
10
Arrange inspections with the buyer at your premises with you attending. This is a crucial stage of the sale process and will reveal any concerns or objections that the buyer may have.
11
Liaise with the buyer's accountant and solicitor.
12
We prepare the buyers written offer to purchase in the form of a Business Sale Contract, which is signed by the buyers and includes the deposit.
13
We present you with the contract and together we assess all the aspects of the terms and conditions, and then, you either accept, reject or make a counter-offer.
14
Once agreement is reached on all terms and conditions of the contract, it then becomes binding and your business is well on the way to being sold!
15
Co-ordinate with the buyer, the accountants and solicitors to facilitate the process that ensures that the contract becomes unconditional by the due date. We keep you informed all the way through this crucial part of the sale. Providing everything goes to plan and the sale progresses to final settlement, you receive payment for a successful sale, and Congratulations.
When working with Verified Businesses, you have peace of mind knowing you’re supported by a team of professional negotiators. We’re at your side when it counts most!
To find out more call us today on 07 5479 5588 to discuss your individual requirements in more detail.
Seller guides: Selling a Business: The Steps to Success | How to Prepare a Business for Sale | How to Achieve the Best Appraisal for Your Business | How to Transfer a Business
To find out more call us today on 07 5479 5588 to discuss your individual requirements in more detail.
Seller guides: Selling a Business: The Steps to Success | How to Prepare a Business for Sale | How to Achieve the Best Appraisal for Your Business | How to Transfer a Business
SELLERS TOOLKIT - FREE 1 HOUR BUSINESS APPRAISAL
Includes written report. Valued at $220 - NOW FREE.
How We Appraise a Business for Sale
Thinking of selling your business on the Sunshine Coast or across South East Queensland? One of the first questions you’ll ask is: “What is my business really worth, and what could I realistically sell it for?”
At Verified Businesses, we understand that no two businesses are alike. Simply applying an industry average multiple to a business’s profit doesn’t necessarily reflect what a buyer would be prepared to pay.
A profitable, well-established business with loyal customers, experienced staff and consistent earnings will generally attract a higher price than one with declining profits or significant risks.
That’s why we combine financial analysis, our 34-Factor Business Risk Assessment, actual comparable business sales and over 37 years of practical business brokerage experience.
Our Business Appraisal Approach
1. Understanding the Real Earnings – Normalisation
The net profit shown in financial statements doesn’t always tell the full story.
Business owners may receive wages, superannuation, motor vehicle benefits or other expenses and benefits through their business.
We review the financial statements and make appropriate adjustments for owner’s remuneration, personal or discretionary expenses and one-off costs to establish normalised EBITDA or PEBITDA (proprietor’s earnings).
This provides a clearer picture of the business’s underlying earnings.
2. Establishing Maintainable Earnings
It’s not just what a business earned last year that matters, but what it can reasonably earn in the future.
We examine historical performance, sales and profit trends, current trading conditions and future prospects to establish its Estimated Maintainable Earnings.
3. Assessing Business Risk – Our 34-Factor Analysis
Most small and medium-sized businesses sell for a multiple of their maintainable earnings. However, that multiple varies depending on the business’s quality, attractiveness and risks.
Increasing profits, repeat customers, good staff, a strong reputation and growth opportunities can support a higher selling price.
Conversely, declining earnings, owner dependence, customer concentration, competition or an unfavourable lease can reduce buyer interest and value.
Our 34-Factor Business Risk Assessment systematically examines and weights the key factors affecting a business’s risk and potential selling price.
We then apply two earnings-based methods:
- Return on Investment (ROI) Method: Assesses the return a buyer would expect for the risks involved, helping determine an appropriate earnings multiple.
- Build-Up Required Return Method: Provides a second assessment using an external investment return benchmark together with business-specific risk.
Together, these methods help establish an indicative selling price range.
4. Checking Against Actual Business Sales
What buyers are actually paying for similar businesses is extremely important.
We compare our findings with completed business sales from our own extensive sales records, our professional industry association’s comparable sales database and other relevant market evidence.
We consider differences in earnings, business size, assets, industry, location and risk to ensure the comparisons are meaningful.
5. Arriving at a Realistic Selling Price Range
Finally, we bring together the maintainable earnings, 34-Factor Risk Assessment, ROI and Build-Up methods, comparable sales and current market conditions.
Applying our practical experience and professional judgement, we establish a Reconciled Indicative Selling Range — an informed estimate of what the business may realistically achieve in today’s market.
Our aim is simple: to give business owners a clear, practical and evidence-based indication of their business’s likely selling price, rather than relying on guesswork or an arbitrary industry multiple.
Our business appraisals provide an estimated selling price range for business sale purposes and are not formal business valuations.
Disclaimer: Verified Businesses is a business brokerage and does not provide accounting, taxation or legal advice. The above information is general in nature and should not be relied upon as professional advice specific to your circumstances. We recommend seeking independent advice from a suitably qualified accountant, tax adviser or solicitor before making any business or financial decisions.