| So now its time to take that big plunge and | | | | vendor's accountant to get the full story of |
| be your own boss. Where will I start? What do | | | | the business!There are good and bad |
| I look for? And for that matter what business | | | | accountants just like there are good and bad |
| will I buy? Will I relocate? Can I get | | | | brokers. It's important to check the licenses |
| finance? Who do I go to for the right | | | | of all your professional people. Find out how |
| advise?These are just a few of the concerns | | | | long they have been in the profession and |
| when you decide on buying a business and | | | | their experience in that field before |
| believe me its not an easy road ahead, but | | | | engaging them.We work with both the |
| with the right advise and the right business | | | | accountants while selling the business and |
| for you there are rewards unlimited to help | | | | are more than happy to answer all questions |
| you on the way to building a bank and a good | | | | relating to the business in question. We will |
| quality of life. This article will help you | | | | also arrange appointments for your accountant |
| all the way.Important Points when Buying a | | | | to speech with the vendor's accountant if |
| BusinessEvery day I receive emails from | | | | required.It's always wise to stay with the |
| purchasers and business owners needing | | | | accountant who handles the business you are |
| assistance in selling or buying. I use my | | | | purchasing, that's if he is a helpful |
| many years of experience in business sales | | | | accountant, if he knows that business well. |
| and running a chain of shops to assist them | | | | It's a big plus to continue on with him, |
| in the right decision for them. It's a bit | | | | after all he is the one that will advise you |
| like a psychologist really. Its just not a | | | | when you are ready to sell.Many people use |
| sale for me, it's a dedication.The first | | | | more than one accountant today. I find a good |
| thing to remember is you must get it right | | | | accountant who knows a business well is a |
| the first time because the business you buy | | | | must to stick with it till the end. I have |
| you should be in for at least 4 to 7 years. I | | | | dealt will some excellent accountants. Two |
| advise my vendors and purchasers to give | | | | that come to mind are in my local town and |
| yourself a 4 year plan. You may love the | | | | are as good as any on this planet they are |
| business so much you want to stay longer but | | | | dedicated to their clients and have help me |
| the majority of people are burnt out after 4 | | | | evenly throughout my last two sales (MCW |
| years and are looking for a change, | | | | Accounting Tumut, Paisley's Accounting Tumut |
| especially if it's a café or restaurant, | | | | and Steven Walker & C.O Tumut) These |
| and if you feel it's wearing you down the | | | | accountants are totally dedicated to their |
| business will suffer if you don't sell then | | | | client's businesses and have enhanced the |
| and of course you won't achieve a good price | | | | sale of two of the best businesses in town by |
| if the business is run down.Finding a | | | | showing truthful and accurate accounting.Your |
| Business!I find in my business newspaper | | | | Business BrokerAs Brokers we will supply your |
| advertising brings me very little sales. My | | | | accountant a profile on the business so its |
| statistics tell me a genuine purchaser will | | | | easy for him to understand. Always insist on |
| go to the search engines to find a broker and | | | | a profile when looking at a business. This |
| scan the listings. We do use the papers to | | | | will give you all the information you need to |
| get our website name out there and this works | | | | convince you this is the right business for |
| to our advantage far more than a long | | | | you. It will include all the statistics of |
| expensive add that lasts one day. Our site | | | | the business and a good breakdown of the |
| is the most valuable tool we have and our | | | | figures the reasons for the sale price, |
| journal Best Business Buys gives you months | | | | etc.Your broker may ask you to sign a |
| of good reading to give a purchaser | | | | confidentiality agreement. This is essential |
| information on how to buy and where. So scan | | | | to protect the vendor under the |
| the net under search engines business | | | | confidentiality act. Sign it and send it back |
| brokers, if you can not find a business on | | | | ASAP. It does not commit you to buying the |
| our site there are other brokers listed that | | | | business. It is a mandatory requirement |
| may be of assistance to you. Or better still | | | | before you look over the figures. You will |
| tell us what you want and we will go find it | | | | find your broker will not send you figures if |
| for you! | | | | you don't sign.If you have made your decision |
| | | | to buy the business be sure you are |
| Anywhere in Australia.Problems with | | | | proceeding before you commit! Put in an offer |
| Newspaper AdvertsYou will often see a private | | | | only when you are ready to proceed. Is this |
| add in the paper and you may think this is | | | | is the business for you can you see yourself |
| great, we will cut out the agent and get the | | | | in for the next few years? Is the family |
| business cheaper.DON'T BE FOOLED!Now I am not | | | | happy with the move and the change, and most |
| saying all private adds are no good, some may | | | | of all is the business viable for you?I sold |
| work out, but in my experience those people | | | | a produce store in Tumut recently to a buyer |
| who try to do it themselves do it because | | | | from Magnet Island who owned a bed and |
| they have either been burnt by an agent not | | | | breakfast (would you believe), and they are |
| servicing their business, so they think they | | | | just loving it and doing very well, so don't |
| will do it alone, or the profit is low in the | | | | be scared to take the plunge and move on. |
| business and they need a quick sale, or of | | | | Most of our buyers are relocating and the |
| course the common one the agents fee offends | | | | stories I have to tell are just amazing!Look |
| the owner and he thinks he can do it better | | | | around be sure the area is where you see |
| himself. Or he may think the advertising | | | | yourself for the next 5 years. If you are |
| costs to sell his business is less if he dose | | | | relocating ask your broker to give you the |
| it himself.WRONG!When you are dealing with a | | | | statistics on that area, home prices schools |
| private sale you feel uncomfortable saying | | | | etc.As Brokers and licensed Business agents |
| what you really think, and uncomfortable | | | | we pride ourselves on relocating people and |
| asking certain questions so as not to offend | | | | finding them the best business for them, but |
| the owner. With a broker you can be open and | | | | it's a big plus if the buyer has some idea of |
| tell us all your concerns. We will work them | | | | what he feels comfortable working in, and |
| out with the owner and rectify them if | | | | after we produce the information to him and |
| possible. We as the agents should now the | | | | his accountant we expect if all is ok he will |
| business as well as the owners, that's our | | | | proceed. If you have doubts tell your broker. |
| job. I look at a business when I list it as | | | | Its unfair to hold up the sale for another |
| my own and sell it as if it was my own. A | | | | interested party.You will then need to sign |
| good broker should be there to help you with | | | | an offer to purchase the business. We have a |
| that sale to the end. Too many owners who try | | | | standard offer to purchase, this will give |
| to sell themselves end up in conflict with | | | | you the rights to proceed. The time normally |
| their buyers.And after a few months of | | | | for the option is one week from agreeing to |
| failures TRYING to qualify buyers he finds | | | | proceed and this also takes the business off |
| out it's not that easy & worst of it he has | | | | the market. It includes a deposit normally of |
| given out his figures all over town for all | | | | 1% of the purchase price. This deposit is not |
| the clients to see, so the business you are | | | | refundable should you decide to pull out of |
| looking at has been exposed to untold people | | | | the sale, unless it specifies subject to the |
| who may be using that information to start | | | | reasons why you have pulled out.So do your |
| down the road.The poor owner ends up coming | | | | homework first! Be sure your accountant is |
| to us anyway. Remember if you stay with the | | | | happy with the figures. Your finance is |
| broker handling the sale of the business he | | | | approved and you are confident you are 100% |
| should be the one to assist you all the way, | | | | proceeding before you signed on the dotted |
| and if that business does not work out the | | | | line.Your broker will then issue sales advice |
| best for you he most often then not will find | | | | to the Vendors Solicitors with all the |
| you another.You Have Found the Business you | | | | conditions included that you require, such as |
| Want to Buy!The first thing you will need is | | | | the lease terms and training requirements. |
| finance. Are you already cashed up? Or do you | | | | After they have looked over the advice and |
| need finance. Are you on a redundancy | | | | done their investigations for the sale they |
| package? These are all the questions your | | | | will prepare the contracts and send them to |
| broker should ask before you plunge into a | | | | your Solicitor for exchange of contracts. You |
| sale.We are financiers and finance most of | | | | will need then to pay a 10% deposit on the |
| the businesses we sell without supplying | | | | business. This is normally arranged by the |
| figures to obtain the loan. Remember the | | | | finance broker, if you have applied for |
| majority of businesses do not always show the | | | | finance, and can be done in a deposit bond or |
| true figures of the business but if you look | | | | cheque. This is deposited into your agent's |
| back at the ad backs of that business the | | | | trust account until settlement.You should |
| business may be a very viable business. Most | | | | have a Solicitor picked out before you decide |
| accountants will reduce the net profits for a | | | | to look around so you are confident with him |
| business, so the tax implications are not so | | | | when you are ready to proceed.At Arwon Realty |
| high for that business. If the adjusted | | | | we stick tight with the Solicitors through |
| profits are good the business is saleable and | | | | out the sale keeping in contact with them |
| your broker will advise you of this at the | | | | throughout the progress all the way for a |
| time. But never, ever buy a business on | | | | smooth settlement.The contracts should take |
| hearsay of the takings, if its not in BALACK | | | | no longer than 2 weeks to prepare and when |
| AND WHITE in the accountants formatted profit | | | | the exchange of contract takes place this |
| and loss statement then its not considered | | | | means you now are totally committed to |
| saleable. Never buy unseen profits.Business | | | | purchase this business. Any problems should |
| FinanceFor finance to buy the business you | | | | be sorted out between the two solicitors in |
| will need to complete an application. This | | | | this time.The contracts are exchanged between |
| way you will know how much you can afford to | | | | the two solicitors and settlement should take |
| borrow on the business you are looking at. | | | | place in the next 2 - 4 weeks. Business sales |
| Not all Brokers are financiers! We are and | | | | are always longer than the normal residential |
| sell businesses because of it. We use a | | | | sales as the solicitors are responsible to |
| financier who lends without looking at the | | | | see you have a new or exchanged lease for the |
| figures of the business you are about to buy. | | | | business. If the property is included in the |
| But with other institutions such as banks or | | | | sale a 149 certificate (zoning and compliance |
| private lenders you will need the | | | | certificate) must be sort by the council to |
| following.We will arrange finance for you | | | | check out the compliances with council this |
| without an up front fee. Most finance brokers | | | | take longer than normal.Before settlement you |
| charge a fee of between $3,000 &$ 6,000 to | | | | have 2 weeks prior and 2 weeks after |
| get you your finance. We at Arwon Realty do | | | | settlement for training. Your vendor must |
| this FREE because we are paid on settlement | | | | give you this time to help you understand the |
| to sell the business by our vendors (owners). | | | | running of the business. We advise the |
| It is in our best interest to get the finance | | | | training is done after settlement so both |
| for our buyers so we in turn can get the | | | | parties are not showing their nervousness |
| business sold, and therefore offer a better | | | | while running the business. This could cause |
| service to our vendors when listing their | | | | the customers to feel a little uneasy.We |
| business. We finance 90% of all business | | | | advise our vendors not to inform the staff of |
| sold!What will I need to supply to my Finance | | | | the sale until exchange of contract for the |
| Broker?- Profit and loss statements of the | | | | same reasons. Your finance must be in the |
| business you are purchasing- Bank statements | | | | solicitor's office 48 hours before settlement |
| for your own personal accounts.- Pay slips of | | | | for a smooth transaction. Your agent will |
| your current employment or if self employed a | | | | hold the deposit of the business 10% on |
| profit and loss statement for the past three | | | | exchange of contract and this will be in her |
| years of trading- Mortgage documents for your | | | | trust account until she receives an order on |
| existing home or properties | | | | the agent from the solicitors on both |
| | | | sides.Settlement Day!We will be there with |
| or sales contracts for freehold you hold in | | | | you for the stocktake. Now some businesses |
| your and your partner's name.- Personal | | | | advertise their business WIWO. That means |
| information, date of birth or passport (photo | | | | whatever the stock is in the business when |
| copy of drivers license)- CRA credit check | | | | you take over is yours and we don't count the |
| (you can do this yourself for a cost of | | | | costs of the stock on settlement. If the add |
| $29.00)- The rates notice of the homes in | | | | states + stock then we have to stocktake |
| your name- Liability and asset declaration.- | | | | before settlement and this is done before |
| The amount you needed to borrow (You must | | | | mostly the evening before, after close of the |
| include the cost of solicitors for advise and | | | | till, with both present and an independent |
| contracts.)Accountants advise: Do it! That | | | | person to help with the stocktake.So now you |
| way you know you are covered. I have lost | | | | are the proud owner of a business that should |
| many sales from Accountants advising their | | | | if your broker has worked for you be the best |
| clients not to buy and seen many unhappy | | | | asset you now have and we wish you all the |
| buyers loosing out on a sale because an | | | | very best of luck and look forward to the day |
| account has breezed over the figures and said | | | | we can asset you in selling for a higher |
| no don't buy! But at least if you do take the | | | | profit!Cathryn Austin is Principal/Licensee |
| plunge and buy anyway after you have had that | | | | of Arwon Realty - Property Business and |
| advise you are assured you did get advice if | | | | Finance Brokers, Business, Real-estate & |
| something does go wrong. After all your | | | | Stock and Station Agents, and owner of |
| accountant is paid to look after you and | | | | Australian Businesses for Sale. |
| professional accountants will ring us or the | | | | |