Catherine Kimpton migrated to Australia from the UK in 2002 and ran several outlets in Victoria before she came to the point where she wanted to sell her business. Her experience in selling a retail business prompted her interest in becoming a business broker and she is now an experienced and respected broker working for Beyond Business Sales. Based in Melbourne Catherine specialises in retail shops for sale, pet care businesses, child care franchises for sale and animal businesses for sale, amongst many others.
Catherine now talks to AIBB about the need for vendors to be receptive when putting up their small business for sale, how technology has resulted in a rise in the number of online businesses for sale and how confidentiality fears are dealt with.
Tackling fears over small businesses for sale
Selling a business is a huge step for any business owner to make and they are very often plagued with fears. One of the biggest worries a business broker has to overcome is that of confidentiality as a small business for sale might fear:
• Staff discovering the business is for sale
• Competitors taking advantage
• Clients losing confidence in the business
Business brokers are familiar with these fears and will not give anything away about the business that may help identify it. Catherine goes a step further, getting potential buyers to sign a buyer qualification form which identifies who they are, their background and what they are looking for so that she can ascertain whether or not the buyer is a suitable match for the seller.
Are you ready to sell your business?
The role of the business broker is essentially to present a business for sale in the best possible light for marketing purposes, to ensure that the business is seen by a wide number of targeted people and to get the maximum return on investment for the vendor. Geoffrey Ellis spoke at length about what the vendor can do to help the success of a sale and now Catherine confirms these views.
She says that the most important consideration is whether or not a vendor is ready to sell and that is meant in a number of ways:
• Emotional attachments. Some business owners see that business as another child that they have nurtured and grown and are proud of but this emotional attachment to the business can hinder a sales.
• Preparation, preparation, preparation. The business should be well prepared and well documented with all paperwork and accounts in order from start to finish.
• Realistic expectations. Not every business sells for what the vendor thinks it is worth. Valuation depends on a number of factors within that business and how the market is performing, so the vendor really needs to be prepared for that.
• Flexible timeframe. Not every business owner can afford to wait but with the help and support of their business broker, an owner can work on the business for another 6 to 18 months and emerge with a much better business model which is primed for a good sale.
Why choose an AIBB Business Broker?
Catherine’s answer to this is simple; “because we’re accredited. We are sitting under a government body and therefore we are accountable to somebody. I think it’s really important that within our industry we have high standards and that we are made accountable, so that we are governed and ensure that we’re all doing the right thing under the right legislation and laws and that people are protected.” As she says, business broking is a growing industry and it’s in their interests to raise the credibility of it.
The rise of the online business for sale
Online presence is now becoming the norm, even in retail: “If you’ve got a retail store, you’re going to have an online store that runs alongside it because if you don’t you’re going to be left behind.” That online store becomes part of the revenue stream for that business.
The people behind that online push; the companies building the websites and working in that creative, marketing space are creating businesses of their own and those businesses are now starting to have a value. Traditionally online businesses would be sold privately or bought by similar companies but Catherine predicts a rise in the number of online businesses for sale in the open market in the future.
Generally there tends to be a lot of interest in them because they can be run from any location and it’s a growing industry. Catherine reveals that she already has a couple of online businesses on her books and they are not always small businesses for sale, their valuation can be anything from $450,000 to $1.1 million.
Listen to the full podcast with Catherine Kimpton, from Beyond Business Sales, which reveals more information plus which industry Catherine would invest in today. Don’t forget to browse through all the resources on the AIBB website where you can find many other specialist business brokers all giving their insight into what a business broker does, how to sell a business and what to look for when buying.
If you need specific advice then don’t hesitate to get in touch with us.
Contact Details
Catherine Kimpton
M: +61 410 131 486
E: catherine@beyondbusinesssales.com.au
W: http://ift.tt/KItNcH
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