The first step in your business sale journey is to get an appraisal, in other words, to find out the likely market selling price of your business. Contact us and we will provide you with a free appraisal of your business. We can then also advise you of the current demand for your type of business. For a detailed overview of the business sale process see our web page https://www.argusbb.com.au/sell-a-business/sale-process/

There are many factors that influence what your business is worth. Some of these factors include the profitability of the business, whether it is growing, static or in decline, the demand for your type of business, how dependent the business is on you as the owner, whether you are reliant on one or two key customers, or if the business has a broad spread of customers, the quality and condition of equipment, the value of your equipment, the location of the business, the presentation of the business, whether the business has a secure premises lease, the terms of the lease etc.

One of the most commonly used valuation methods, for profitable businesses is business value = multiple X profit. The resulting value generally includes all equipment, goodwill and stock. Although this appears very simple, it is more complex than it seems. You need to be sure that you are using the correct definition of profit. Also, the multiple can vary widely depending on the definition of profit used. Further, the multiple needs to be carefully selected based on the industry, size of the business and the risk profile of the business. It is generally a very good idea to seek professional help from a business broker when determining the value of your business. If you are thinking about selling your business, please feel free to contact us and we will provide you with a free appraisal of your business. If you want to get a deeper understanding of how businesses are valued, you can see an overview of valuation methods at the website of our business valuation division, Argus Business Valuations. (use this as the hyperlink https://www.argusvaluations.com.au/business-valuations-method/)

How much time it will take to your business will depend on quite a few factors. Businesses in some industries are in more demand that businesses in other industries. For example, accounting practices, wholesale businesses and packaging businesses are in very high demand currently. On the other hand, clothing retailers, furniture retailers, businesses in industries that are in decline or those in dirty industries can have lower demand from buyers. The higher the demand for businesses in your industry, the quicker your business is likely to sell.

Businesses in metropolitan areas generally sell more quickly than businesses in regional areas. The more remote the location, the longer it is likely for the business to sell. This is mainly because businesses in metropolitan areas are generally surrounded by large populations. Therefore, there are many prospective purchasers living close to each metropolitan business. In smaller regional communities, there may be very few, prospective buyers in the area surrounding the business.

Most metropolitan based business, if correctly priced, are likely to take approximately 2 months to 9 months to sell. If the business is in a regional area, it could take longer to sell. Sell times can, of course, vary.

If you want to sell your business quickly, being well prepared can definitely help. This means having access to your latest financial statements, tax returns and business activity statements. It also means having access to your accounting and business software or having someone available with access to your accounting and business software. The reason is that buyers are likely to ask for a variety of reports that you need to be able to provide quickly.

Ensuring that your business is correctly priced can also help ensure that your business sells within a reasonable period of time.