Have a question?
How to sell a business in Australia?
You can list your business privately through Business For Sale. See the packages above for all the options to get started today. We can also connect you with legal advisors that are experienced in business transactions and can help represent your business. It's important to note that legal requirements often vary by state so consulting with a legal advisor that has experience in business sales is recommended to ensure compliance with any state and national regulations.
I don't know where to start, can I get someone to help me?
Yes of course! We know that you may be an expert in your business but you have never sold a business before. And it could be one of the biggest transactions you do.
How to sell your business privately?
Selling your business privately means handling the process on your own without the involvement of a business broker. Also all of our listings can be made fully private so when you upload your business details you can exclude any identifying information such as business name or logo. This helps you to only reveal these details to genuine interested buyers.
While selling your business privately can save you on fees, it's important to recognise that the process requires substantial effort, expertise, and a thorough understanding of legal and financial considerations. If you're unfamiliar with the process or feel overwhelmed, check out our concierge package here. Or contact us and we can recommend a broker for your specific business and location.
What can I sell?
You can sell any legal business or assets. The business has to be registered in Australia. Businesses often include or exclude Real Estate as part of the deal. If you are looking to sell other assets, let us know here and we can check if it would be a suitable asset.
How much does it cost to sell with Business For Sale?
You can create your business listing today and start receiving enquiries from interested buyers. There is an upfront fee depending on which package you choose here. Most business brokers charge 5-15% on the sale price of a business. For a $500k business, this can be $50k broker fee. None of our listing packages include a commission so you only pay for the listing, helping you to save during the sale of your business.
How long does it take to sell a business?
From our 36 years of experience, the average time it takes to sell a business in Australia is 6-9 months.
This is a rough average of all the businesses that we have helped to sell.
But the time it takes to sell is influenced by lots of factors, here are the key ones we see most often:
Complexity of the business: If the business is simple and has straightforward financials, it will be easier to close a deal quickly. We often see this with online businesses as their financials and systems are easily verified and changed over. On the other hand, if the business is highly specialised, operates in a heavily regulated industry, or has complex financial structures, it may take longer to find the perfect buyer and complete the sale.
Asking price and valuation: Setting the right asking price for the business is crucial. If the asking price is too high, it can deter potential buyers and the sale process can take 2-3 times as long.
Marketing exposure: With 64,000 registered buyers, Business For Sale can put your business in front of genuine buyers looking for businesses in your industry. By receiving multiple offers, you can then pick the ones with the best value and terms such as time required to close on the business. As a private seller it can be hard to get this same reach without you reaching out to competitors and employees possibly finding out your business is for sale.
Due Diligence and Negotiations: Once a potential buyer shows interest, negotiations and due diligence begin. This stage involves extensive discussions on terms, financial analysis, legal considerations, and thorough examination of the business's records. If the buyer requires financing to purchase the business, this may involve additional time with extra due diligence and paperwork.
Considering these factors, the process of selling a business typically ranges from a few months to a year or more. But it's important to note that every business sale is unique, and the timeline can vary a lot.
If this is your first sale, then we recommend the concierge package where we can help guide you through the selling process. Through that package we can also recommend experienced professionals such as lawyers with experience in selling businesses that can help streamline the process and make it as smooth as possible.
How should I price my business?
Pricing your business appropriately is crucial to attract the perfect buyer for your business. Here are some steps to help you determine a fair and realistic price for your business:
Evaluate your financials: Start by analysing your business's financial statements, including income statements, balance sheets, and cash flow statements. This will give you a clear understanding of your business's financial performance and its potential for future growth. Your accountant will be able to help you prepare your financials but not all accountants have experience with the business sale process so you can also hire expert consultants to help value your business. Reach out to us, if you want help valuing your business.
Consider market comparables: Research similar businesses that have recently been sold in your industry or location. Look for businesses of similar size, type, and market position. Examine their sale prices, valuation multiples, and any specific factors that influenced their value. This can provide a benchmark for pricing your own business. You can search all the current businesses for sale here.
Seek professional help: Engage the services of a business appraiser, accountant, or business broker with experience in your industry. These professionals can perform a comprehensive business valuation, taking into account factors such as financials, market conditions, industry trends, and intangible assets. Their expertise can help you determine a fair market value for your business.
Evaluate growth potential: Buyers are often interested in the growth prospects of a business. Assess the potential for future growth based on factors such as market trends, customer demand, scalability, and competitive advantages. Highlight any growth opportunities, such as untapped markets, new product/service offerings, or expansion potential, as these can positively influence the price.
Consider seller financing and terms: Offering seller financing, where the buyer pays a portion of the purchase price over time, can make your business more attractive to buyers. Adjust the price accordingly to account for any financing terms or other seller concessions you may be willing to provide.
Be realistic and flexible: While it's natural to have a desired sale price in mind, it's important to be realistic and flexible. Consider market conditions, buyer demand, and the results of your valuation process. Setting an unrealistic price can deter potential buyers and prolong the sale process. Be open to negotiation and find a fair middle ground that satisfies both parties.
Remember, pricing a business is a complex process, and seeking professional advice can be valuable. We can help you arrive at a price that accurately reflects the value of your business in the current market.
What does the Platinum package include?
The platinum package is perfect for first time sellers with a business value of over $250k. You retain control of the sale process and negotiations. And we help as an advisor with:
Prepare your business for sale: Ensure your business is in optimal condition before listing it for sale. Let you know what necessary documentation you will need to organise such as financial statements, tax returns, contracts, and leases.
Determine the sale price: Conduct a thorough valuation of your business to determine its fair market value. Consider factors such as financial performance, assets, market comparables, growth potential, and industry trends.
Develop marketing materials: Write a detailed listing with custom photos to help make your business stand out as a promoted listing on our site. The listing will be written by Kylie, our expert advisor, to highlight key details about your business, such as its history, financials, assets, operations, customer base, competition, and growth prospects.
Market your business: Promote your business to our network of 64,000 registered buyers, specifically to buyers looking for businesses in your industry. Enquiries will get emailed through to your email for you to look over.
Screen and qualify buyers: When potential buyers express interest, screen them to ensure they are serious and have the financial capacity to acquire your business. Request buyers to sign a confidentiality agreement before providing them with detailed information about your business.
Conduct negotiations: Engage in negotiations with interested buyers to discuss the terms of the sale. Negotiate the sale price, payment terms, transition period, and any other specific conditions. We can help as an advisor during the negotiation process.
Due diligence process: Buyers will conduct a due diligence process to verify the information you've provided and assess the risks and opportunities associated with your business. Be transparent and provide access to financial records, contracts, customer lists, and other relevant information. Address any concerns or questions they may have during this stage.
Finalise the sale: Once both parties are satisfied with the due diligence process and negotiations, proceed to finalise the sale. We can recommend legal professionals experienced in business sales to draft a binding sale agreement that protects your interests under Australian law. Ensure all necessary legal documents are completed, including the transfer of ownership and any required licences or permits.
Transition and handover: Assist the buyer with the transition process by providing necessary training, introducing key stakeholders, and sharing operational knowledge. Ensure a smooth handover of assets, customer relationships, supplier contracts, and any other critical aspects of the business.
We can help take some of the hassle out of selling your business by providing a 1on1 advisor for you throughout your sale process, so you can move on to your next adventure.
