Selling 20 businesses a year sounds like a success story, which it was! However, it was a journey filled with challenges, disappointments and frustrations whilst building resilience and facilitating ongoing learning. Here are some learnings from sales in 2024.

Learnings for vendors

  1. Lease Market Review: Conducting a market review before coming to market (if it is looming) ensures a quicker, smoother sale
  2. Non-Registered Lease: Can lead to time delays, uncertainty and legal complications
  3. Occupancy Certificate (OC): Having an OC before bringing your business/building to market avoids legal issues and resale challenges
  4. Fire Certificate: Ensure compliance with fire safety standards, esp if there is anything residential included such as a sub-lease
  5. Declining Profit: Lowers business valuation and weakens negotiation position, so consider bringing your business to market when it is at the peak, instead of waiting too long; one never knows what is around the corner WRT one’s health and capacity.
  6. Expired Contracts: Can complicate due diligence and delay settlement, so ensure contracts are signed and current before coming to market
  7. Settlement: Aligning settlement dates is crucial especially when there might be massive tax implications because of one’s age (think retirement and CGT implications)
  8. Workers' Compensation: Addressing these issues BEFORE bringing the business to market reduces liabilities and promotes a smooth transition.

Learnings for buyers

  1. Overcommitted: Financial overcommitment canreduce negotiating power
  2. Early Advisor Involvement: Involving advisors early prevents wasted resources and missed opportunities. Get your deal team (accountant and lawyer) around you BEFORE starting to look for the perfect business to buy.
  3. Right Lawyer: Essential to avoid costly mistakes… engage ONLY a commercial lawyer as opposed to a family court or criminal lawyer. Just like me as a specialist medical broker, there are also specialist lawyers.
  4. Right Accountant: Ensures compliance and better financial DD.
  5. Clear Selection Criteria: Prevents wasted time and resources by investigating the wrong data
  6. Timely Due Diligence: Avoids delays and builds trust.
  7. Understand Due Diligence: Crucial to avoid financial discrepancies.
  8. Lack of availability: Being responsive is key to not missing opportunities and maintaining negotiation leverage.
  9. Family Advice: Prioritise specialist counsel over family member well-meaning advice to avoid mistakes.
  10. Funding Pre-Approval: Enhances credibility and speeds up transactions.
  11. Create Purchasing Entity: Manages legal and financial risks.
  12. Banker vs. Broker: Brokers offer personalised support and more financing options.

Thorough preparation and due diligence are crucial. From understanding lease agreements and obtaining necessary certificates to involving advisors early and choosing the right professionals; each step matters. Financial readiness, clear acquisition criteria and timely actions significantly impact the success of business sales and acquisitions.

The journey of selling 20 businesses in a year taught me that success is not just about the result, but about building resilience, becoming adaptable plus continuous learning along the way. By embracing these lessons, both buyers and sellers can turn challenges into opportunities and achieve their business goals with confidence.

To learn more about selling a business, or to find out about LINK Business, visit the LINK Business page on the Credabl Partner Hub.