Business Broker of the Year 2018 Award REIV

We are excited to announce Choon Ng from Xcllusive Melbourne has won the “Business Broker of the Year 2018″ Award for the Real Estate Institute of Victoria (REIV).

The REIV Awards for Excellence showcase the best of the best in the industry and celebrate leading real estate agency practices and professionals.

Choon is a valuable member of the Xcllusive team and your industry experience, knowledge and high level of service to your clients is something to be proud of! Congrats Choon! #reiv #reivaward #reiv2018 #broker #businesssales #xcllusive #teamxcllusive

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NSW Business Chamber Regional Awards 2018

Peter George accepts the award on behalf of Zoran Sarabaca.

On Tuesday the 17th of July Xcllusive Business Sales attended the NSW Business Chamber Regional Awards night for 2018.

The awards celebrates business excellence in NSW by recognising and rewarding outstanding businesses whose passion, determination, innovation and success inspire other businesses and business people.

The Xcllusive Team proudly took home the award for Outstanding Business Leader for our region.

We are super excited to progress as a State Finalist to the 2018 NSW Business Chamber State Business Awards on Friday 23 November at Luna Park, Sydney.

It’s an honour to be recognised for the dedication and hard work that our team puts into delivering such a high level of service, trust and expertise to our clients and to help them sell their business with Certainty!

Here are just a few of our photos from the evening – thank you to the NSW Business Chamber for hosting an enjoyable evening celebrating the best in business!

 

 

 

Photos courtesy of the NSW Business Chamber 2018.

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Business Champions Finalists for 2018

Xcllusive have been recognised as a Champions Finalists for 2018. We are super excited to be finalists and look forward to joining everyone at the Awards night in April. A big shout-out to our Team, Clients and Partners that help make Xcllusive a success!

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Xcllusive Events and Seminars for 2018

We have many events scheduled for 2018 and if you would like to find out when an event is happening in your area visit Eventbrite for Details.https://www.eventbrite.com.au/o/xcllusive-business-sales-10794823495

Our next Free Events are in Albury and Newcastle called: How much is your business worth?

If you would like to know more you can visit: https://www.eventbrite.com.au/o/xcllusive-business-sales-10794823495

If you are an Accountant or Solicitor and would like to co-present with us at a Seminar contact Sophie on (02) 9817 3331 or email [email protected]

 

 

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How to price your business without ruining your business sale.

Let’s just get this out of the way: there is no one-size-fits-all formula for pricing your business. Anyone who tells you that there is, is probably about to ruin your chances of selling your business at its full value. 

And here’s why: the price at which you take your business to the market is one of the main determining factors that can lead to a successful business sale. Your advertised price has a huge affect on everything from:

  • Your target market,
  • The perceived return on investment,
  • The availability of finance,
  • Your buyers’ level of trust in your business,
  • The calibre of buyers you attract,

… and most importantly; it has serious implications when you get to the negotiating table.

All of those things put together can have a massive affect on your business sale so, quite simply, if your business price isn’t a strategically calculated figure, you’re shooting yourself in the foot. It can be the difference between selling and not selling.

So, given that minefield, how do you calculate how much your business is worth?

To begin with, you aren’t going to be able to do it without help. I should probably also say, given what we’ve already said, that you aren’t going to be given a formula at the end of this blog with an answer. What this blog does however, is point you in the right direction. 

Here’s our recommended first step on how to value your business:

Most people’s first thought is to either get a business valuation or to get their accountant’s opinion. Though these are good options, there’s a much quicker (and cheaper) way to get some fairly accurate estimates.

My recommendation for the best first step would actually be to approach some business brokers for an appraisal. Now, this might seem a little self-serving (given that we are business brokers), but it is my genuine opinion (Plus, most good agencies will put together an appraisal for free).

Most business brokers’ appraisals are obligation free and business brokers are uniquely positioned in that they have first hand access to what businesses are selling for in the current market. Furthermore, if they are a reputable broker, the appraisal they give you will be geared towards a realistic selling price. Why? Because it’s in the broker’s best interest to advertise the business at the right price so they can sell it and get paid!

IMPORTANT: Picking the good agents from the bad is core to getting a good appraisal. Make sure you read to the end for tips on how to pick the right agents to produce your appraisal. 

The reason you need to go to multiple brokers is that you want to get at least three price opinions for your business. If they’re all around the same price then your pricing decision will be easy. If however, the appraisals all come back very different then you’re going to need to make some hard decisions. Without business valuation training, the absolute best test you could do is the age old ‘sanity test’. This is a real test that even valuers use, but you can do it yourself.

For each appraised price, you need to put yourself in a buyer’s shoes and answer the following question as unemotionally and honestly as possible:

 ”Knowing what I know about my business;
its profits, advantages, disadvantages, benefits and drawbacks;
whilst considering the current economic climate and industry conditions
and comparing it to other businesses and investment opportunities…
would I pay this price for it?”

If your answer is a very quick ‘Yes’ without too much thought, then the price might actually be a little low.

If your answer is a resounding ‘No; I would invest this money elsewhere, then the price is likely too high.

If however your answer is something more like ‘Yes, but only after thorough investigation and serious consideration’, then you have likely found a reasonable asking price.

 

So, is that it? Well, yes and no. No, because of course you could study up and read through all 1000+ pages of a very thick and heavy valuations manual… but if you’re like most business owners I know then the hundreds of hours required to do so are not really available to you. Otherwise, the process described in this blog is the very process that I used to sell my own business before becoming a business broker (and before reading through all 1000+ pages of a very think and heavy valuations manual).

There’s no way to know exactly how the market will react to your price, so remember; listen to the market. All buyers will likely have concerns over price (obviously), but if buyers are telling you that the business is way over-priced and they are not interested in taking it further, then you need to be prepared to react to that feedback.

Do that, and you’ll be lightyears ahead of your competition.

Good luck!

By Zoran Sarabaca
Principal Xcllusive Business Sales Pty Ltd
Sell your business with Certainty.

PS. IMPORTANT: Read this to help you pick the right brokers for the appraisal.

 

The main variable of this whole exercise is picking the right brokers to appraise your business. Not all appraisals are created equal and you do need to be picky with the brokers who’s appraisals you trust. Here are four quick tips to help you pick the right brokers to approach for a good appraisal.

  • Any good appraisal requires financial documents to produce. If the broker doesn’t ask for them, then find an agent who does.
  • Stick to agencies with a low business to agent ratio. Do this by counting the number of businesses listed on their website and dividing it by the number of agents they have. If the website has 1000 businesses and only three agents, then those agents are not going to have the time to focus on individual businesses and as a result will often over quote business prices simply to list more. An over quoted price is not what you’re looking for.
  • Avoid agencies with what appears to be very overpriced businesses. Take a look at their listings page, and if their prices make you scoff then maybe give them a miss.
  • Avoid agencies with very high engagement fees. As of 2014, agency engagement fees up to about $2,500 – $3,000 are totally acceptable. If the brokerage is charging you $5,000 – $10,000 just to sign up with them, then their financial incentive is at the front end of the deal. This means that they make their money by signing you up as opposed to selling your business. Under these circumstances it is actually in their favour to over-quote you in order to sign you up and get the engagement fee.

Remember, this tip list is mainly to help you find the right agents to appraise your business. It’s not a be-all-end-all to help you choose the right broker… but it’s a good start.


DISCLAIMER: The information contained in this blog is for information purposes only. It is not meant to be considered as business advice. The points of view expressed represent reactions to the current business market and it should be noted that the market may be subject to change in the future. Reader’s specific circumstances may be different and have not been taken into consideration. Always consult with your professional advisors for any business advice.
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The truth about overseas business buyers: What you need to know about ‘overseas buyers’ with ‘deep pockets’.

On the road to selling your business you will likely come face to face with someone claiming that they can sell your business to an overseas buyer for more than it is worth. Despite recent actions taken by the ACCC against unscrupulous vendors (1) making these claims, the myth about overseas buyers continues to plague business sellers.

Advertising overseas will cost as much if not more than it does in Australia and knowing the truth about overseas buyers could save you a lot of wasted money.

So, if you’re thinking of selling your business through a business agency now or at any time down the road, take the time to arm yourself with the myths and facts about overseas buyers.

Myth: Many overseas buyers are willing to pay up to three times what a business is worth.

Fact: If somebody has enough money to pay three times a business’s value you can assume one thing about them: They have a lot of money. There are only a handful of ways to get a lot of money, and most of them revolve around being a savvy investor and/or a good business person, neither of whom would even think about paying three times anything’s value.

Myth: The overseas market is brimming with buyers for the Australian market.

Fact: Though there is a chance of selling to an overseas buyer, unless you are a major international, that chance is insignificantly remote. In fact, one of the sites we use to sell businesses have portals in France, Germany, Hong Kong, Italy, Luxembourg and new Zealand. So technically we advertise businesses for sale in an overseas forum. So why don’t we advertise that we have ‘overseas buyers’? Because the number of overseas buyers is infinitesimally smaller than the number of local buyers and it would be close to unethical to even mention them.

So, knowing what you know now, exactly what percentage of businesses do you think actually sell to overseas buyers? Based on a survey of the Australian Institute of Business Broker’s 353 Members, in the 2012 financial year only 2.6% of businesses were actually sold to overseas buyers or to overseas entities.(2)

In summary, only a tiny, tiny fraction of buyers come from overseas. The ones that do aren’t looking to bankrupt themselves to get a visa, they are good business people and they have the time to be picky. So in short, if anybody tells you they can sell your business for more than its worth to overseas buyers, they’re probably not the business agent for you.

By Zoran Sarabaca

Have you ever been told by an agent that they can sell your business to an overseas buyer? OR have you actually sold your business to an overseas buyer? We’d like to here from you!

To find out more about this topic or if have any questions about business sales make sure you give us a call on (02) 9817 3331 or submit a response or enquiry through the site. We look forward to talking to you.

Disclaimer: The information in this article is intended as information only and should not be taken as professional business advice.

Sources:
(1) http://www.aibb.org.au/press_release.php?Id=23
(2) http://www.aibb.org.au/press_release.php?Id=29

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Xcllusive Business Club

Grow, Systemise, Keep, Sell and Drive PROFITS

Register for ONE of our FREE Information Sessions below:

Thursday 16th of November – 8.30am to 10.30am

OR

 Thursday 23rd of November – 8.30am to 10.30am

 @

Aqua Luna Waterfront Dining – 461 Henley Marine Drive, Drummoyne NSW 2047

www.aqualunawaterfront.com.au

http://www.xcllusive.com.au/xcllusivebusinessclub.html

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Free Seminar – Shellharbour NSW : Exit Planning and How to Prepare Your Business for Sale

Exit Planning and How to Prepare Your Business for Sale

Wednesday 11th of October 2017

The Shellhabour Club

Arrive at 6.15pm for 6.30 start until 8.30 pm

(Refreshments on arrival and there will be further refreshments and nibbles following the event up until 9pm)

Thinking of selling, exiting or retiring from your business? This practical seminar will show you what you need to consider before you make the big decision. Selling a business is never easy, but this session will help you minimise the uncertainty and provide you with all the tools to prepare your business for sale.

This seminar brings to you an expert team of Business Professionals who will provide you with vital, practical and actionable information to assist you getting your Business ready for sale now or in the future!

Our three experts will discuss:

  1. How to value & sell your business – Market buyer’s value process.
  2. Taxation & Accounting Considerations – What you can do now to minimise tax on the sale of your business.
  3. How to avoid delays in the legal process - What can you do now before a buyer is identified?

 

Zoran Sarabaca

Xcllusive Business Sales – www.xcllusive.com.au

Principal of Xcllusive Business Sales / Most successful agency for selling $1m to $6m businesses / Author of ‘How to sell a small business’ / Winner 2014 Best Business Strategy Award / President of the Australian Institute of Business Brokers.

 

Andrew Webb

Andrew Webb Family & Business Accounting  - www.webbaccounting.com.au

Owner and Chartered Accountant / Andrew has a wealth of experience from working with rural and small business clients to Australian branches of global companies, and high net worth clientele / Providing a fresh take on accounting, Andrew is interested in peoples’ stories, and looks forward to meeting you, not just your business.

 

Peter Franke
Stacks Heard McEwan – www.stacklaw.com.au/heardmcewan

Director at SHM /Peter’s specialty is in Property and Business Law / An excellent problem-solver and negotiator who provides advice with a focus on client communication and building lasting relationships / His expert advice and knowledge has helped numerous clients avoid potential pit-falls and capitalise on best possible opportunities.

RSVP TODAY to Reserve your seat - Please book early as seating is limited.

 

Ways to Register:

Register here at Eventbrite  https://www.eventbrite.com.au/e/shellharbour-sell-your-business-with-certainty-tickets-37589521270

Email us at [email protected]

or call Sophie at Xcllusive on 02 9817 3331
** Lucky Door Prizes on the Night – So don’t forget to bring along your Business Cards and Questions for our Presenters **

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Free Seminar(Central Coast NSW – Wyong) : Exit Planning and How to Prepare Your Business for Sale

Exit Planning and How to Prepare Your Business for Sale

Tuesday 9th of May from 6.30pm

Wyong Golf Club

Arrive at 6.15pm for 6.30 start until 8.30 pm

(Refreshments on arrival and there will be further refreshments and nibbles following the event up until 9pm)

Thinking of selling, exiting or retiring from your business? This practical seminar will show you what you need to consider before you make the big decision. Selling a business is never easy, but this session will help you minimise the uncertainty and provide you with all the tools to prepare your business for sale.

This seminar brings to you an expert team of Central Coast Business Professionals who will provide you with vital, practical and actionable information to assist you getting your Business ready for sale now or in the future!

Our three experts will discuss:

  1. How to value & sell your business – Market buyer’s value process.
  2. Taxation Considerations - How to prepare your business for sale well before you put it on the market.
  3. How to avoid delays in the legal process - What can you do now before a buyer is identified?

 

Zoran Sarabaca

Xcllusive Business Sales - http://www.xcllusive.com.au

Principal of Xcllusive Business Sales / Most successful agency for selling $1m to $6m businesses / Author of ‘How to sell a small business’ / Winner 2014 Best Business Strategy Award.

 

Troy Marchant

Robson Partners  – http://www.robson.com.au

Director of Robson Partners and CA /  Director of Business Coaching & Development and runs the U Factor Coaching division where he shares his  global experience on how to grow your business, stay profitable and improve financial position.

Anna Cruckshank

Aubrey Brown – http://www.aubreybrown.com.au

Managing Director of Aubrey Brown, Anna specialises in Commercial law, working closely with clients from a range of industries including pharmacy, medical, registered clubs, building, childcare, hospitality and wineries.  Anna is also an accredited mediator, and an accredited collaborative lawyer, with over 24 years’ experience.

 

RSVP TODAY to Reserve your seat - Please book early as seating is limited.

 

Ways to Register:

Via https://www.eventbrite.com.au/e/sell-your-business-with-certainty-tickets-33232592579

Register here at Eventbrite

Email us at [email protected]

or call Sophie at Xcllusive on 02 9817 3331
** Lucky Door Prizes on the Night – So don’t forget to bring along your Business Cards and Questions for our Presenters **

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Free Seminars (Albury and Wagga) : Exit Planning and How to Prepare Your Business for Sale

RESERVE YOUR SEATS TODAY:

 

Albury, NSW | Commercial Club Albury

 

Tuesday, 21 March 2017 from 6:30 pm to 8:30 pm (AEDT)

Albury – https://www.eventbrite.com.au/e/albury-sell-your-business-with-certainty-tickets-31697536184

 

Wagga Wagga, NSW | Commercial Club Wagga

 

Wednesday, 22 March 2017 from 6:30 pm to 8:30 pm (AEDT)

Wagga – https://www.eventbrite.com.au/e/wagga-sell-your-business-with-certainty-tickets-31736030321

Exit Planning and How to Prepare Your Business for Sale

Thinking of selling, exiting or retiring from your business? This practical seminar will show you what you need to consider before you make the big decision. Selling a business is never easy, but this session will help you minimise the uncertainty and provide you with all the tools to prepare your business for sale.

This seminar brings to you an expert team of Local Business Professionals who will provide you with vital, practical and actionable information to assist you getting your Business ready for sale now or in the future!

Our three experts will discuss:

  1. How to value & sell your business – Market buyer’s value process.
  2. Taxation Considerations - How to prepare your business for sale well before you put it on the market.
  3. How to avoid delays in the legal process - What can you do now before a buyer is identified?

RSVP TODAY to Reserve your seat - Please book early as seating is limited.

Ways to Register:

Register here at Eventbrite above on the above links.

Email us at [email protected]

or call Sophie at Xcllusive on 02 9817 3331

 

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