Brokerage Matters

WHAT IS MY BUSINESS WORTH?

ROD RUSSELL Savvy Business Sales

Over the years, many business owners have suggested they know exactly how to value their business. Generally, they’ve been misled on an assumption that, there is a simple calculation for their industry to arrive at the figure a buyer will agree to pay.

If only it was that easy! You could have two identical businesses in the same town with the same profitability, similar product lines, stock holding and clientele yet one may achieve double the price of the other.

A common myth is, a business is worth its annual turnover or, a multiple of three to four times its net profit. Whilst there are select industries that work to formulas (such as Childcare or management rights), most businesses have to be valued on their own merit.

When appraising a business, we assess to a myriad of variables that may affect the value of the business. Key staff members, owners input, lease terms, rent, cash flow, ability to finance, supply agreements, clientele, equipment included and of course, current market conditions are all considered.

Whilst some sellers are disappointed to learn they may not achieve their dream price, we often exceed business owner’s expectations. This is common for medium to large sales, where well established businesses with solid profit and management structures are offered. Wealthy buyers have a strong appetite for these and are aware they will have to pay a premium to secure them.

One thing for sure is, there is an enormous amount of buyer activity at the moment. If you really want to know what your business is worth, now may be the best time to find out!

ABOUT THE AUTHOR Rod’s unrivalled professionalism and years of experience have earned him the reputation as the Sunshine Coast’s most successful business broker. He continues to raise the standards in business sales.

Are you a WISE Investor? Astute buyers will have to move quick for this “One in a Thousand” Sunshine Coast based business opportunity. Annual sales over $3 million generating net profits of $500,000 pa elevates this business to a league of its own, add to this the bonus of being a five day per week operation and you will agree that it is an exceptional chance to gain financial security whilst enjoying the unique Sunshine Coast lifestyle. Your dream business is available for immediate purchase.

$1,295,000 + SAV (approx $70k) Rod Russell 0409 931 600

Restaurant and Catering • Beautiful coastal location • Monopoly in local area • 100 seat fully licensed • Low rental • HACCP accredited Benchmark Restaurant at Peregian Springs offers a fantastic opportunity to run with the current theme or make your own mark on this thriving area.

$105,000 + SAV Debra Donahoe 0411 660 741

Booming Business – Under Management iPhone, iPad repair business, this established service centre has been successfully operating since 2009, boasting high profile customers in the private school sector, hospitals and mining. No you do not have to be a techno wiz; you just need a good eye for a good business. • Sales exceeding $500,000 • Netting Approximately $120,000 under management • Solid growth. Your choice, work in this exciting business or keep operating under management! $310,000 + Sav Debra Donahoe 0411 660 741 or David Nichols 0421 998 892

114 BrisBane rd, MooloolaBa Q 4557 T 07 5444 3300 www.savvybusiness.com.au

Must See Opportunity Serengeti, as in its origin of name is a stunning one of a kind Noosa retail store full of amazing unique fashion, furniture, and home wares. You will love the: • Leading edge point of sale technology • Integrated e�commerce website • Beautiful shop fit out with large store room and office • Online Shop www.serengetistore.com.au What are you waiting for secure your future and expand your creativity today! $99,000 + SAV Nett $140,000 David Nichols 0421 998 892

Successful Cycle Shop – Sunshine Coast • Premium branded, non�franchise business in a growing market • Enjoyable business, knowledgeable long term staff • Prominent position with excellent lease • Genuine growth prospects through expansion and diversity • Minimal competition through supplier loyalty model • $1.1M turnover and growing. Generous handover period if required.

Priced to sell @ $365,000 + SAV Jeremy Bycroft 07 5444 3300

Beachside Wholefoods Store Beautiful high quality fit out and fantastic location, make this multifaceted health and wellness business a dream come true for someone looking to step into this booming industry. A wholefoods store combined with a Natural Therapies clinic in high growth coastal town, perfect for a couple to grow and enjoy the perfect lifestyle business.

$189,000 + SAV Debra Donahoe 0411 660 741