Paul Ebbels… senior Business Broker at Seaboard Business Brokers is also a Mentoring Professional.
Mentoring the Business seller – Mentoring the in going Purchaser to your business
Business Owners and Brokers alike need to work with the knowledge and awareness of an ever changing market place. We are entering a new era of how we see our business progressing, it’s structure, current sales and if we see profits continuing or improving in the near future. Many long standing and successful businessmen have put their life’s work towards building, nurturing, guiding and growing their business to levels of varying success, whilst others have become icons and/or household names. Ultimately, all these businesses will reach a point of needing alliances, seeking mergers or simply just being disposed of. And God forbid, in many instances, the stark fact of unexpected health issues may also precipitate an untimely disposal of a business.
We are becoming more and more aware that many business owners are going about their business on a daily routine without any thought as to making their business sale ready or desirable to a new evolving market place.
The market place may very well be accepting of the dynamics and interpretation of “average” or “average result”. But, not if one has invested forty years of one’s lifetime into building a successful and viable business.
Selling a business has become a complex and involved endeavour on the part of the business owner and requires specialized advice and strategy on the part of an astute Broker.
Buyers will drill into every corner of your business to ensure they are buying a good business.
Due to the Australian economy as it is, the “Baby Boomer” flood gates have not yet opened with Vendors stalling the sale of their businesses. The most used “R” word at the moment is recession. These “Baby Boomers” would now be in their 70’s yet still holding on. Whilst many well operated and profitable businesses have sought alliances or sold to cooperate companies, the remainder can not hold on for ever.
Whilst Donald Trump and China continue their argument on tariff impositions (BTW as at 25/08/2019 China has retaliated with a 25% tariff on any goods imported from USA to China) the immediate future is not looking good. Already the Asia Pacific Rim is feeling the pain, of which Australia is a part.
House prices have completed their periodical cycle and have plummeted.
Many thousands of Real Estate agents have lost their jobs.
China’s growth rate 18 months ago had dropped to 6.3% from a low of 7.5%
According to the Morning Star, there are many high ranking officials suggesting China’s GDP is currently at 3.5% and will plummet to 3.25%
Many of our industries supplying iron ore, coal and agricultural goods have seen a very large down turn in supplying China
90% of these business owners will not achieve what they expected for their business. That is, they will not achieve an adequate return on the sale of their business.
Another sad statistic (provided by Bond University), is that less than 10% of businesses will be sold.
Profit on the sale of your business is the ultimate prize as the true reward for the effort, energies and risks of being in business.
Why does this happen? Because the business was not sale ready, there was a large gap between what an owner thought his business was worth and what a potential purchaser was prepared to pay.
Each business for sale requires three major aspects to achieve “true value”.
- A detailed Business Plan
- A clean and uncomplicated business for the new owner to just move forward (hit the ground running).
- The ability for Vendors to answer thoughtful and prying questions about their business.
IF YOUR BUSINESS IS NOT “SALE READY” YOU MAY NOT GET TRUE VALUE
Seaboard Business Brokers has partnered with The Mentoring Company (Paul Ebbels). We believe this service will provide a unique advantage to the Business seller as well as the incoming Purchaser and importantly, to give your Broker a greater advantage during the sales process.
Throughout Paul’s career as a Senior Manager and business owner in several diverse industries, it became clear that although businesses may have a wide variety of tools to assist in developing their business, they often don’t have the skills to utilise these tools effectively. This is where Paul and “The Mentoring Company” steps in.
Profit growth is fundamental to sustainability and eventual sale value of your business
Paul’s mentoring program is designed to assist business owners by rebuilding the blocks for a more efficient, profitable and desirable business to a prospective buyer. A program that shows how to use various tools and skills effectively, how to maximise every skill set and at the same time fixing the balance sheet ready for sale.
Seaboard Business Brokers are pleased to offer such a unique and invaluable service by way of an independent professional to both our existing Vendors and incoming Purchasers of a business.
Feel free to seek Paul’s services regardless if you are a Seller or Purchaser.