The Negotia Guarantee.
Our job is to place you in a position to make the best commercial decision.
You can expect a caring, listening ‘ear’ from us and strict adherence to maintaining your privacy.
You can expect to have regular open and honest private discussions about your business.
You can expect a thorough, thoughtful and careful analysis of your business both in its physical nature and environment; its financial information and the market that you may be about to enter.
You can have access to our unique marketing campaigns that will push your business to the top of ‘Google Searches’.
You can expect regular personal calls, open discussion and review of the progress we are making towards a successful outcome for you and your business.
Business Brokers & Business Broking Firms
Business broking firms are not all the same. Some are large-scale with Australia and/or State-Wide operations with several officers and business brokers.
The capability of business brokers also varies widely. There are those who are new entrants into the industry, to those who have many years of successful sales behind them and those who specialise in one field.
Equally, the range of products and services also varies widely. There are those offering limited directory advertising support only; those seeking only success fees (i.e. commission only) to those offering a full range of products and services tailored to your criteria.
At Negotia Group, we offer that full range of support; from thorough physical and financial analysis, businesses appraisals and valuations, detailed sales documentation, dedicated marketing campaigns and more.
How Many Business Brokers Are There?
In Queensland, there are probably less than 100 capable business brokers active in the business sales and opportunities market today.
Of this number about 50 business brokers are Members of the Australian Institute of Business Brokers (AIBB), Australia’s Peak Industry Business Broking Association.
Members of the AIBB are bound by the bodies Code of Ethical Practice and Conduct. In our view, it is a business owner’s best protection against poor industry practices.
Be aware, some business brokers represent lots of businesses, from around 30 each through to 100s. There are some business brokers with hundreds of listings selling businesses literally ‘from the boot of their cars’.
Negotia Group is a small operation with experienced Business Analysts, Business Valuers and Business Brokers who focus on your needs as a business owner, and we maintain close personal relations and communications with all our Clients.
Selling in a Recession!
Fundamentally, there are two (2) elements impacting value in the eyes of a business buyer.
One is Profit Level, and the other is the Risk to that profit level. The risk that profits will not be maintained into the future. This is often referred to as the multiplier or the return.
The ‘multiplier’ is that Rate of Return (expressed as times-earnings) that a buyer seeks to get back, in exchange for the total amount of funds that had to be invested.
The total amount of funds invested includes the cost to buy all the tangible assets (property, plant and equipment, stock, etc.), PLUS the Working Capital needs; AND any Work in Progress.
In some businesses, the value of the business, in terms of the total funds invested, might be represented only by the cost price of working assets acquired; it might also be represented by the sum of the costs of tangible assets plus working capital plus any work in progress.
In others, the total funds invested also includes payment for goodwill.
Whether or not goodwill exists is determined by the level of risk to the profit level being maintained.
Almost uniformly true for all purchases is that “due diligence” being undertaken by prospective buyers is more thorough and more invasive than at any time previously. Buyers and Third-party advisers will check every detail before settlement.
Financiers are more “risk-averse” now when it comes to lending to business, irrespective of the claims made in their promotional materials. This lack of support from financial institutions is resulting in an increasing number of business sales transactions being facilitated with partial funding via “Vendor Finance.”
Periods of economic recession increases peoples fear and doubt, and it impacts our confidence in the future.
That uncertainty can surround the individual, a family, and certainly extends to businesses.
Fear, as it relates to that uncertain outlook for individuals, families and businesses, expresses itself in the perception (real or imaginary) of heightened risk. Where there is more risk, decisions tend to get delayed; research is more thorough; all the angles studied carefully.
When you sell in a recession, you can expect that the business opportunity you are placing into the market will be thoroughly researched, it will be analysed and studied by prospective buyers and their “expert advisors”. Preparation, presentation and promotion are vital for success, more so in a recession than in normal trading periods.
Whilst good businesses do sell, buyers are presently showing ‘Buyer’s Fatigue’ (tired of looking) and frustration at not being able to find well priced and well-presented business opportunities.
When selling in a recession, be across all the details. Importantly, selling a business becomes more difficult; it warrants thoughtful consideration and preparation. Almost all the work in a business sale is done before it is placed onto the market. That, unfortunately, adds to business selling costs.
Negotia’s approach is always to keep in mind the outcome; a successful settlement and transfer of a business. That lets you (our client) move onto your next goal in life.