Do you want to know a secret in the business broking world…
When it comes to selling a business, the single biggest reason most businesses don’t actually sell when listed is that they aren’t priced correctly.
They either get overvalued (I’ll explain why this happens below), and they can sit unsold for a year or more with zero or very little interest…
Or they can be undervalued, leading to sellers missing out on tens or even hundreds of thousands of dollars.
So how does this happen?
This can come from:
❌ Business brokers either not doing a proper appraisal,
❌ Brokers overvaluing the business to win the listing (knowing that it won’t sell any time soon) or just asking what the seller wants to get for their business and going with that.
❌ Sellers going with inflated accountant valuations
So how do you prevent this from happening to your business so when you do go to sell it, you get the result you’re after in a timely manner?
Make sure to get your business valued right the first time.
At New Chapter Business Sales a large part of our effective business sale system comes from pricing our clients businesses correctly from day 1, and to do this we go into depth and:
🎯Analyse the last 3 years of accountant-prepared business financial statements to calculate adjusted profit and EBITDA
🎯We then look at tangible assets (stock, inventory, work in progress)
🎯Then perform a 26-point risk analysis including business structure, industry, competition, location, leases, government and economic impacts and more)
🎯Then we analyse the strengths, weaknesses and opportunities of the business
🎯Then select and apply at least 2 of the 7 valuation methods
🎯Then compare against comparable industry sales data from Benchmark’s 6000+ sales and the Australian Institute of Business Brokers sales records (we are the only brokerage in NQ with access to these sales records)
Then we provide:
✅ A recommended price listing range along with
✅ Recommendations to improve sale value
✅ And how to make the business more sellable
This entire process can take 1-2 days depending on the business size and complexity, which means we do charge a fee for it and can only perform 2-3 appraisals per week.
So if you’re getting ready to sell your business and want to ensure it has the highest chance of selling in a timely manner and for the right price, call or email us to see if you’re potentially a good fit for our service to get your business valued right.
