Selling a business can be a complex and daunting endeavour. At the Di Petta Group, we list, market, negotiate, and then sell your business, taking all the stress out of the process for you.
To facilitate the sale, we leverage a mix of strategies across digital marketing, advertising, trade publications where appropriate, and we maintain and communicate with an up-to-date database of potential buyers.
We also market specifically to business migrants via ongoing overseas seminars in association with a migration specialist.
Making the decision to sell your business is a big one. When we list your business for sale it is on the basis that a genuine sale is required for whatever reason and as such we expect certain things from you, our Vendor to assist us. The supply of information/documents is the number one priority as without these items we cannot assist to sell your business. In the first instance our representative will visit you, preferably at the business premises, to see the business first hand and then to complete the listing form and Authority for us to sell your business.
We need certain information from you which is then supported by documents which include, but is not limited to, a Section 52, Profit and Loss statements & balance sheet, a list of plant & equipment which is to be sold with the business, copies of premises lease/transfer documents and disclosure statement and any licences/permits that are legally required to trade. We then get into industry specific information and documentation which we would discuss with you.
Without those items listed above we CANNOT be expected to field any genuine enquirers.
This document is prepared and signed off by your Accountant. It is a legal document and without it we cannot enter into a Contract of Sale of Business. It is almost always the first thing that we are asked for by a potential buyer. This document is supported by Profit and Loss Statements, BAS Statements and Balance Sheets.
You need to supply us with a list of everything that you own in the business premises of which ownership will transfer to the buyer upon settlement. This list must be clear and concise. A separate list is also needed of items that are at the business premises but which are not actually owned by you so that there are no grey areas in terms of ownership.
The above obviously provide details of your tenancy and we need copies to supply to the potential buyer so that they can see what type of tenancy terms and conditions they can expect if they purchase your business.
Many business industries require permits and/or licences to be able to trade and these for the most part can be a transferable item at time of settlement provided that the business and sometimes buyer complies with governing legislation. We need copies of any that apply to your business and its everyday trading.
We then get down to industry specifics and these additional requirements are addressed as the requests are made from potential purchasers.
The process of deciding on the right kind of business to purchase, involves a number of steps:
The team at the Di Petta Group can help you navigate the entire process:
1. Take your time
Buying a business is a major commitment both financially and emotionally. Don’t make a rushed decision.
2. Do your research
Once you have decided on the most appropriate industries, research them. Find out how the industry is going, how many businesses are operating in the industry, who are the main suppliers, who are the major clientele, who is the major opposition....know your chosen market to make the best informed buying decision that you can. The more that you know about the industry, the greater will be your ability to analyse the viability of any business you look at. Information on an industry can be obtained from many sources such as suppliers to the industry, the library, trade magazines, consultants to the industry, other business owners, accountants and the Business Information & Licence Centre of the Small Business Development.
3. Industry Sector
You must decide which sector of the industry you want to operate in:
4. Improve your skills and expertise
If you need extra knowledge about an industry or general management, do a course or work in the industry. For example, if you wish to own a coffee lounge, work in one for a short period before plunging into business ownership of one. Do your Food Handling Course with a local education provider.
5. Buying A Business And The GST
Businesses of a “going concern” do not attract GST in addition to the purchase price. If you are unsure whether the business that you are enquiring about is of a “going concern” please consult with your Accountant.
6. Financial Criteria
You need to know and understand your financial constraints. If the business is going to be your sole source of income, the minimum profit that you will need is that amount which will cover your living expenses. Unless the business makes this amount you will be in immediate financial difficulty. Most people prefer to make more profit that just covering the basic necessities of life. Consequently, decide for yourself the minimum that you expect. If you don’t have enough cash monies to purchase, you need to determine how much money you can raise and borrow. It is no use looking at a business worth $250,000 if you can only finance one up to $100,000. Even if you buy a business worth $100,000 you may not want to borrow that much. So, importantly, you must decide what your preferred price is and if necessary increase this if the right business comes along.
In association with Interglobal Migration Services, we regularly travel to South East Asia to conduct seminars and assist business migrants in their endeavours to buy businesses in Australia, in order to obtain permanent residency.
As a result, the Di Petta Group is able to offer our vendors additional options for selling their businesses, without local geographical restrictions.
We have proven sales in most business categories, and our migration agent from Interglobal Migration Services travels with us and covers all areas for migration. This allows business migrants to purchase businesses we offer for sale, which is a unique and new service the Australian market.
As experts in Business Advisory Service, with our combined 48 years in the industry and a total of 19 years meeting with overseas business migrants, we seek out specific businesses to match Australian migration regulations and assist with providing sources of expert information and legislation relevant to specific business categories.