Business » Business Brokers

Lin Andrews Business Brokers are business brokers based in Adelaide South Australia

One of the more exciting aspects of Lin Andrews Real Estate has been our ability to perpetuate businesses through successful business brokering whereby a business is transferred to the care of new and creative owners. 
This aspect of our business was shifted into a new Company Lin Andrews Business Brokers in December 2004 so as to provide a platform for significant growth in this product service. 
 
Succession Planning for a business may take the following form:-  
 
Sale to Third Parties  
Merge with another business  
Staff takeover  
The first question that every Vendor of a business asks is  
"Who will buy my business and why?" 
We find that most businesses will sell to one of the following:-  
An existing customer  
A competitor  
A third party wanting to enter your industry  
The next question is  
"Can you sell my business without my staff or my creditors knowing?" 
The answer is an emphatic "Yes!" 
Before exposing your business to the open market we will prepare with you a list of the most probable buyers and then determine an order of priority in approaching these individually for confidential discussions. 
 
It is not uncommon to sell the business to one of the first of three persons approached. 
 
If all else fails, then we will advertise the business utilising the following preamble.  
 
"The directors of an undisclosed engineering business operating in the Adelaide area are aware that they have taken the business to the maximum level of their capabilities". 
They are now inviting through this Agency open discussions which will result in the business rising to a new and higher level either through its sale in part or in whole or a merger with an organisation which will permit the business to go to its next level. 
This always results in a wide variety of enquiries and again the confidentiality of the transaction is assured through confidentiality agreements but more importantly our skilled negotiators involved in board room negotiations. The next question always is:-  
 
"What price can I expect for my business?" 
The answer is much more difficult to determine but we will summarize your profits plus any other "add backs" such as your own directors fees and salary plus any other benefits to you and your family in the form of motor vehicles, superannuation and the like. 
We will apply a series of formulas to determine the sell price of your business based on a reasonable recovery rate on a proposed investment from a potential purchaser. 
 
What rate of return should a purchaser expect given the risks and the personal involvement in the management of your enterprise. 
 
For pricing purposes it is essential that we have the profit and loss figures for the past several years - preferably a minimum of five. 
 
The next question usually asked is  
 
"What can I do to improve the net sell price for my business?" 
We will examine your business and give advice such as to diminish stock, diminish debtors and if possible, defer creditors so as to minimise the amount of working capital and perhaps be in a position to already take some of your cash out of the business. 
Plant and equipment which is fully paid for often works against the Vendor of a business since all pricing will be determined upon a rate of return for funds employed and it is often the case that plant and equipment under lease will substantially increase profit whilst at the same time diminishing the funds employed. 
 
The next question is always  
 
"What do I have to do to prepare for a sale and what information will you require?" 
The answer to this will vary according to the type of business and its size but in brief we look for the following:-  
Aged Debtors List  
Aged Creditors List  
Plant Capability  
Plant Register  
Depreciation Register  
Profit and Loss Statement and Balance Sheets for a minimum of three years and preferably five years  
Statement from Workcover  
A written summary of the opportunities available to the business which you would embrace if were young and starting again.  
The next question usually relates to our fees and this is a subject which must be negotiated face-to-face based on the size of the business and the marketing plan to achieve its sale in a way which will maximise return to the vendors and minimise risk to the purchaser. 
In conclusion we will only offer make our services available in Business Broking for those organisations who do not have anything to do with undisclosed revenue. 
 
The integrity of the business is paramount since we have a heart to see businesses continue to grow in the hands of new owners so as to serve their communities well in the supply of goods and services through the employment of individuals working in a fulfilled manner and being grown themselves to achieve their own individual potential. 
 
Most businesses are not placed for sale on our web since they are handled in a totally confidential manner and web exposure would destroy that confidentially and perhaps undermine the comfort and security of employees and suppliers alike.  
 


Business Brokers Adelaide South Australia: http://www.linandrews.com.au/business_brokerage.php