Field Notes from our brokers

Innovation = Future Business Value

Had a chat with a pressure washing business owner in Townsville this week about safety innovation.

Interesting discussion.

Most business owners see safety improvements as a cost.

But when those improvements become documented systems, processes and intellectual property, they can become part of what makes the business valuable.

A buyer is not just buying revenue.

They’re buying the way the business operates.

The more knowledge that lives in the business and not in the owners head, the more attractive it can become.

#smallbusiness #businessowners #businessbroker #businesssystems #exitplanning

Fuel Surcharges and the New Normal

Been chatting with a few business owners this week about fuel surcharges and rising supplier costs.

Interesting thing with business is how easy it is to introduce a new charge during pressure periods.

But once its there, its very hard to remove later.

Temporary costs have a habit of becoming part of the status quo.

Probably best for businesses to plan as if some of these costs are the new norm.

Holding companies make exits easier/smoother for all parties

Talking shop with a trade business owner in Warragul, Victoria this week about holding companies and business sales.

A lot of trade businesses are built around contracts.

The tricky part is buyers often need to buy the actual company itself because changing entities on contracts can trigger procurement reviews or even new tenders. Limits flexibility.

A holding company can be beneficial later. Holding company owns assets & property vs Operating company has the legal contracts with clients & employees etc..

Keep the property.
Keep some machinery.
Sell only what the buyer actually wants.
Or separate the contracts from the assets completely.

Example; New business owner walks into the operating company and services contracts with their own equipment/property.

Stuff most owners never think about when starting a business.

Pay For Good Advice, Early!

I have started and sold 3 businesses in my life and what I know now is good advice is priceless.

Business advisors. Financial planners. Tender writers. Tax specialists. Accountants. Industry professionals.

They are specialists.

Same as the guy fixing your air con on a 40 degree day. You are paying for years of expertise, mistakes and experience before your problem even showed up.

The expensive part is usually not the advisor.

Its getting advice too late.

Can I still sell my business if profits dropped this year?

A weaker trading period does not automatically stop a business from selling.

Buyers usually care more about why profits dropped. A temporary disruption, one-off cost or explainable market issue is very different from a structural decline with no clear recovery path.

The key is preparing the explanation before due diligence starts.

Everything will need an explanation!

Let's Book a Call Together?

If you would like to discuss your situation privately you are welcome to book a confidential call. This is not a valuation and not a sales pitch. It is a chance to understand where you are, what you are aiming for and whether working together makes sense.