Education & Resources
Selling and buying businesses aren’t activities most people do very often, so it’s common for there to be a lot of confusion surrounding the process. Business brokers, like those in Townsville, Cairns, and Mackay, as well as in North Queensland, play a vital role in facilitating these transactions, offering expertise and guidance to both buyers and sellers.
So in an attempt to bring clarity to the process, dispel common myths, and help limit mistakes made throughout the process, we regularly create helpful educational content to help both buyers and sellers. Whether you’re looking to sell your business in Townsville, Cairns, or Mackay, or seeking to buy a business in North Queensland, understanding the process and having the right support can make all the difference.
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New Chapter Business Sales NQ
We are a licensed business brokerage helping North Queensland business owners sell their business and move onto a new chapter in their life, as well as assist buyers in new acquisitions.
Broker License number: 4754495
If you’re planning on selling your business, you’ve probably had at least one of these questions floating around your head at some point:![]()
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Q1: What does a business broker actually do?![]()
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Q2: How to find one more suitable for your needs.![]()
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Q3: When does it make sense to NOT hire one?![]()
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Well today, I’m going to answer them in depth here ➡️ newchapterbusinesssales.com.au/what-does-a-business-broker-do/![]()
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As well as hopefully clear up a lot of misconceptions around the business sale process.![]()
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Enjoy![]()
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- Kurt
What Does A Business Broker Actually Do? - New Chapter Business Sales North Queensland
newchapterbusinesssales.com.au
If you’re planning on selling your business, you’ve probably wondered what a business broker actually does?
🔥We're excited to announce that we have ANOTHER contract signed... this time on an off-market NQ garden maintenance and cleaning business.![]()
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This business was never advertised online. ![]()
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The vendor contacted me last year contemplating selling and enquired if I had a buyer I could connect him with.![]()
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We did.![]()
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I connected the two parties confidentially, went through a lengthy negotiation period and with some creative deal structuring it looks like we should get this deal done at a price and with terms that the owner is happy with - in line with our value appraisal.![]()
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Selling off-market has it's positives when it comes to extra confidentiality, though one of the downsides is that you're only dealing with one buyer, so there can be less leverage in deal negotiations, though if the buyer sees the value in the business and is happy to meet the vendor's price and terms, it's a good option.![]()
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If you'd like to be out of your business by years end, now is the ideal time to get the ball moving on the valuation and sale process as most deals take 9-12 months from first speaking to a broker.![]()
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We have quite a few very interested buyers as well, specially with interest rates on the way down.![]()
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You can email me directly at kurt@newchapterbusinesssales.com.au to organise a conversation.![]()
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Have a great day![]()
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- Kurt
We're excited to announce that on Friday a purchase contract was signed on this highly profitable kitchen splashback business we listed late last year.![]()
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The owners had tried to sell this business with another brokerage without success before listing with us.![]()
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Just a couple of the many things we did differently:![]()
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🎯Priced the business accurately using real comparable sales data. ![]()
(We're the only broker between Cairns and Rockhampton with access to this data).![]()
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🎯 Deployed a multi-channel marketing approach including targeted social media ads.![]()
(We're the only brokerage North of Brisbane doing this)![]()
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Once this deal settles we'll go into more detail.![]()
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If you're thinking about selling your business, call us on 1300 405 597 for a confidential conversation about your situation and goals.![]()
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- Kurt
📌 Common Small Business Valuation Myths📌 ![]()
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If you're planning to sell your business in the near future you're going have all sorts of ideas of how much it's worth based on online valuation calculators, which often times are not relevant for small businesses.![]()
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Here are three common myths specifically relevant to small business valuations, as the same rules do not apply to large businesses and publicly listed companies.![]()
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❌Valuation Myth 1. Goodwill is added to plant and equipment/fit-out value.![]()
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The best way I can explain this is that, at a 40,000 foot view, a business is simply seen as an asset (or a box) that spits out cash for an owner.![]()
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The equipment is simply part of that cash-producing asset, and was acquired to build and maintain the cash return coming out of it.![]()
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A business owner can get into trouble here by being overcapitalised if they spend too much on equipment or a fit-out compared to how much profit their business is making.![]()
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An example of overcapitalisation is: If I own a trucking business with $10M worth of vehicles... ![]()
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But it’s only making $1M profit a year... ![]()
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Then not many people are going to see that 10% ROI as good value compared to them putting that money in the stock market or property for a lot less risk.![]()
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The owner would be better selling off his equipment here or increasing profit to at least $2.5M-$3M a year to attract a buyer who would be willing to outlay $10M on it.![]()
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Caveat 1: There is a ‘rule of thumb’ valuation method applied to some equipment-heavy industrial businesses - where used equipment value + 1yr of profit is used, though ROI is still a major factor.![]()
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Caveat 2: If a business is being sold within the first 1-2 years of operation, the cost of fit-out and setup can be factored in and used in a valuation sometimes.![]()
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❌ Myth 2. Growth potential is factored into price. ![]()
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In small businesses, geographical area constraints growth, so the main factor is past performance. ![]()
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That’s different to a software company, young franchise or young publicly listed company that has a lot of runway to expand around the country or world.![]()
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Caveat: In the rare cases where a small business that is selling is growing rapidly and a large portion of new profit hasn’t been realised in the last set of financials, it’s not uncommon for a buyer to pay for that unrealised growth if they think it’s worth it to them.![]()
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❌ Myth 3. The valuation will be the sale price.![]()
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When we do value appraisals we look at comparative sale data to get a more accurate picture of the industry value, but there are so many external factors involved that can affect what a business actually settles for.![]()
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Industry values rise and fall based on economic, political factors as well as industry competition or what buyers are in the market at any one time.![]()
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I’ve had businesses that have attracted a large amount of buyer interest but sold at the very low end of appraisal range, simply due to buyers who were willing to pay more not being able to get funds together.![]()
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I’ve also had businesses sell for above the high end of an estimation due to a private equity firm being active in the market in that specific industry at that time.![]()
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Within 3 months of listing you’ll usually have a good idea of whether your business is going to go for above, below or close to listing price range.![]()
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Want to speak to a professional about getting a valuation on your NQ business?![]()
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Call us on 1300 405 597, or email me directly at kurt@newchapterbusinesssales.com.au![]()
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Have a great week.![]()
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- Kurt
tel:1300405597
We are a licensed business brokerage helping North Queensland business owners sell their business and move onto a new chapter in their life, as well as assist buyers in new acquisitions.Broker Licen...
🎯National Economic Outlook For Business Sellers![]()
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Here is our quarterly update for the national economic picture relevant to business owners looking to sell this year.![]()
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📌 1. Interest Rates Are Shifting in Sellers’ Favour![]()
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The prediction among economists and banks suggest the RBA is likely to start lowering interest rates within the next 1-6 months if inflation continues to edge lower.![]()
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Historically, lower borrowing costs make it easier (and more affordable) for buyers to access capital. This typically boosts buying activity, often driving up competition for quality businesses and potentially lifting sale prices.![]()
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📌 2. Inflation & Consumer Confidence![]()
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Stable or slightly declining inflation, which we are seeing now generally supports increased consumer confidence.![]()
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Steady consumer demand translates to healthier sales figures for many businesses, which can enhance the attractiveness of your company to buyers and potentially underpin higher valuations.![]()
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📌 3. Solid GDP Growth but with Regional Variations![]()
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According to Deloitte, Australia’s GDP growth is currently projected to hit around 2.4% over the coming 12 months. This is a moderate pace compared to previous boom cycles, yet it’s still indicative of a reasonably stable economy.![]()
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Certain industries (e.g., healthcare, technology, renewable energy) are experiencing higher growth rates, and buyers tend to pay a premium for businesses in these growth sectors. Likewise, resource-rich regions might see more robust deal-making than areas largely dependent on discretionary spending.![]()
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📌 4. Private Equity & Strategic Acquirers Are Active![]()
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Many private equity firms and corporate buyers have capital they’re ready to deploy. Lower rates would further incentivise acquisitions as the cost of debt financing decreases.![]()
Companies looking to expand product lines, market share, or geographic reach see acquisitions as a faster route to growth. This environment can be advantageous for owners of niche or high-performing businesses.![]()
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📌 5. Talent Costs on the Radar![]()
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While unemployment remains relatively low, many businesses face rising wage expectations and difficulties filling skilled roles. If you can demonstrate a stable, well-trained team, it’s a significant point of appeal to buyers who otherwise face labour constraints.![]()
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If you're thinking of selling, 2025 is shaping up to be a good year for it based on macro economic projections.![]()
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Email me at kurt@newchapterbusinesssales.com.au or call us at 1300 405 597 to talk about how we can help you sell your business and move onto a new chapter in your life.![]()
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- Kurt
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