What Is A Business Broker - Succession Plus

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What Is A Business Broker

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What Is A Business Broker

By , January 25, 2013

One of the key points of differentiation between business brokers is the amount of work the broker will do prior to the actual sale of business transaction. If the broker is simply looking to prepare a short document promoting the business ( Information Memorandum ), take a few photos and then advertise the business – then whilst this might work to achieve a sale of business – it is rarely going to be a good method to maximise the value of the business.

In other cases business brokers will ask you to go away and do some preparatory work yourself to ensure the business is better prepared for sale and that you have some of the relevant due diligence materials prepared and available, as the buyer will normally ask for a lot of materials as part of the sale process.

In our 21 step process ( as outlined below ) the actual sale – business broking transaction ( liquidity event ) forms step 18 of 21 steps – this is because, in our view, in order to maximise sale value most businesses need a lot of work – there are lots of areas that require dedicated effort and attention in order to reduce risk and improve performance / profitability – the two factors in a business valuation formula !

A lot of our approach is also about identifying the most suitable strategic buyer for the business and if this is done well it can be a key component of achieving the best possible sales price for your business – most business brokers simply won’t spend the time ( typically between 6 – 18 months ) and effort to fully prepare the business for sale and therefore maximise the value.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.