Kevin Kerr and Paul Brljevich of Tabak Business sales know that there is an art in timing – they are experienced in identifying the right moment to sell your business as you are only ever going to sell it once.
“It’s not simply a matter of reaching retirement age that prompts the decision to sell a business,” Paul says. “In fact that group of sellers accounts for only around one third of our sales.”
Often business owners have simply lost their passion, discovered a new opportunity or their company success has prompted the need for a radical change or restructure. Health, personal and family needs make up the majority of reasons for deciding on the need to sell.
Whatever the reason, Kevin and Paul emphasise the benefits to be gained by chatting to them early. They do it differently to other brokerages. They thoroughly explore the drivers of the desire to sell and examine all the available options to them.
“Boredom is common with many owners and if the 100% commitment and energy is not there, the business will in most cases plateau or in some cases decline,” says Paul. “This could be detrimental to the business and as a result might decrease the business sale value.”
Once the desire to sell is certain, then Tabak’s experienced team are able to create a marketing strategy to attract the right buyer for the business. Says Paul: “We strategically limit our listings in order to ensure a highly personalised and confidential service.”
Getting a business into shape for a sale takes time and Kevin says that only 20% of SME owners with a business to sell come to see them early enough. The key to a successful sale is preparing the business so as to maximise the sale value. Sounds simple enough but too few business owners seem to do it.
Buyers tend to focus on the most recent business performance and profitability trend lines to ensure that it will continue under new ownership. Too many business owners think that their past performance alone will determine the business value. The key factor here is assessing that the current performance, income stream and resulting profits are maintainable (Future maintainable earnings).
Industry cycles and economic factors are also taken into consideration. It is for this reason that the timing of the sale is critical to presenting the business in the best possible light and at the best time. Kevin says that there is generally no trouble finding buyers for well-run profitable businesses.
Kevin and Paul emphasise the need to talk to them when you are first thinking of selling your business. Our most successful sales are when the process goes smoothly and the maximum value is achieved. Inevitably these are businesses that we have been working with for a significant period of time prior to going to market.
Connecting Serious Buyers with Quality Businesses
0800 482 225, info@tabak.co.nz, 07 578 6329
(Tabak Ltd REA 2008)
