Business Sales
Specialists
Maximise the sale value of your business
Business Sales
Specialists
At Walsh Accountants, we have a team dedicated to the supporting clients and their advisors in obtaining the best outcomes for the sale of their businesses. Not only does this include navigating the complexities of the business sale itself, but we also provide a services which assists in preparing for a future business sale.
We offer complete business sale and early stage exit planning services including assistance with assessing and improving business valuation and due diligence. If you’re in need of a dedicated Business Sale Specialists team, look no further than Walsh Accountants.
Early Stage Exit Planning
Being in business on the Gold Coast for over 45 years, our Accountants have found two reasons business owners plan to sell their business is to fund their next venture or to fund their retirement. The first time many small business owners look carefully at the value of the business they have created, is when the time comes to sell – Most achieving a far lower exit price than they had hoped for and some just closing the doors and walking away.
But it doesn’t have to be that way. With just a little effort and forethought, you can enjoy steady income growth and achieve a strong sales result when it comes time to exit.
We firmly believe by putting a plan in place well in advance of the proposed sale, you can ensure you maximise the value of your business, minimise the amount of tax you have to pay upon sale, all whilst enjoying a healthy income stream when you’re in operation.
Ideally your business will have been trading profitably for 2-3 years at levels that will deliver fair value for your business before you list it for sale; hence the reason why we consider early stage exit planning essential to deriving the maximum amount of profit from the sale of your business.
Business Sales Support – Benefits
Where careful planning is undertaken in respect of a business sale, we have found that this can provide the following outcomes:
- Tracking the business performance and maintaining KPI’s over a consistent period of time prior to sale;
- Ensuring the current operating structure is suitable for the anticipated outcomes of the business owners including preservation of tax concessions for the ultimate shareholders;
- Offering a pre-sale due diligence which may identify issues that may affect sale price and can be provided to future purchasers.
What Is Your Business Worth And
How Can You Improve It?
Do you currently know what your business is worth? This is a question that every business owner should know, but most have no idea or have a figure based on what they would like it to be worth, not what the market or a buyer would pay should they be interested in purchasing the business.
Value has many points of view, some things have more value to the owner than they do to the market.
“The Multiplier”
Most businesses are valued on a multiplier of profit or EBITDA (Earnings before interest, tax, depreciation and amortisation). This can be referred to as the “capitalisation rate” or simply, “the multiplier”. Businesses in the small-medium size range will usually transact at a multiplier of between 1 to 5 times profits.
The multiplier is determined after taking into account the goodwill of the business (e.g. reputation/branding), the nature of the business (e.g. what markets it operates in), size and scope of the market and market liquidity. Other factors include the degree of independence from the directors (e.g. can the business run without day to day management from directors) and a solid history of maintainable profits.
- Determine what range your multiplier will fall into
- Determine what amount of annual profit will get you the fair value for the business
- If there is a gap between your expectations and reality, construct a strategic plan with your advisor to deliver the profit you need and a realistic timeframe to achieve this profit.
Find your score
Download our “Key Factors that make a Business Valuable” to score your business from 1 – 10 on how you feel the business is performing
We have helped many business owners work through a business value indicator process and then worked with them on strategies to help them raise the value, and also prepare for sale.
Some of the services we offer to clients to help them with their valuation or increase their business value include:
- Future options for Sale
- Early Exit Business Planning
- Exit Strategies
- Identify Value Drivers
- Identify Gaps and Desired Value
- Identification of KPI’s
- Monthly Reporting Packs
- Capacity and Growth Modelling
- Forecast changed required to achieve/improve business value
- Structure Review
- Structuring for Asset Protection
- Forward looking Budget and Cash flow
- Global 10 year Budget Planning
- One Page Strategic Plan (OPSP) – To help keep everyone focused on goals
The Due Diligence Process – What Is Involved?
Once terms have been agreed to, most contracts will normally contain a due diligence clause where the buyer is permitted to inspect the business records, financial statements and regulatory compliance. This is to provide better comfort that the business they have contracted to purchase is as it has been represented.
The range of information that can be verified includes:
- Sales figures for accuracy.
- Expenses reported by the business.
- Employment costs and entitlements.
- Customer analysis.
- Employment costs and entitlements.
- Employment costs and entitlements.
Business Sale Specialists
We pride ourselves in not only being there for our clients at the point of sale, but assisting them leading up to the process to ensure they maximise the amount the acquire for their business once it’s sold.
Our reliable and knowledgeable specialist team will be with you ever step of the way.
Team members
Managing Director
