Frequently Asked Questions
Can I sell my own business?
Legally Yes, but there are a number of factors to consider if you wish to sell your business yourself, you need to confidently answer “Yes” to each of the following questions. If you can not answer Yes then our agents at Sterling Business Agents can be the broker who can achieve that all important sale for you. At Sterling Business Agents Pty. Ltd. we can:
- Maximizing the sale price.
- Negotiating the best settlement outcome.
- We are skilled in presentation and packaging your business for the market.
- Ability to advertise and market appropriately.
- Understand and manage the legal requirements and obligations when selling your business.
- Ample time – When you run a busy and successful business, finding time to talk to people who want to buy your business may be difficult.
- Ensure confidentiality and security of your business information.
- Capacity to successfully negotiate the sale.
- Understanding and ability to complete all legal documentation.
What are the benefits of using a broker?
A broker can direct the flow and management of the selling of your business with regard to each aspect of your business.
Management and Monitoring
When using a broker to sell your business you not only get the benefits of having expert advice on hand to answer all your questions, but you will find that they manage the entire process of selling. This process will commence with you introducing your broker to your business, and then being guided by your business broker through the entire process. At Sterling Business Agents we make selling your business our priority because that is our core business. We monitor and manage each aspect of the introduction and sale process, discussing with you what will be needed for your particular business as necessary.
Time in the market as a business broker ensures that you are dealing with a business professional, who has had the experience of selling hundreds of businesses. This experience means that your business can be assessed, measured and evaluated, with the appropriate advertising, marketing and ongoing management strategies being applied. Chances are we have probably sold a business just like yours and know exactly what features to highlight and market in order to maximise the sale price while still maintaining your privacy.
Dealing with an experienced licensed business broker means that you have two forms of insurance cover. Under current Victorian legislation:
- All deposits must be paid into a Trust Bank Account, that ensures your money is safe at all times until settlement.
- All licensed brokers are known as independent stakeholders and bound to ensure that deposits are handled within legislation guidelines
- Brokers Trust Accounts are audited yearly and also regularly and randomly audited by Consumer Affairs Victoria.
- A reputable business broker will be covered by Professional Indemnity Insurance.
- The Victorian Government provides a Guarantee Fund to all licensed Estate Agents and Licensed Business Brokers in Victoria.
Professional Practice and Ethical behaviour
An experienced licensed business broker, is not only licensed by the State in which they practice but is also bound by a strict Professional Rules of Conduct and Code of Ethics. This Code of Ethics is your guarantee that any information you supply to your business broker is strictly confidential.
What problems might I experience if I use my accountant or solicitor to sell my business?
While many businesses are sold by experienced Licensed Business Brokers, you may decide to sell your business yourself with assistance from your accountant or solicitor. Before you decide you may need to consider these points:
- Selling businesses is a business broker’s core business and will ensure maximum price for minimum cost.
- Broker’s fee is a success fee, based on results: – No Sale No Charge
- A reputable licensed business broker is well experienced in skilfully negotiating the successful sale of your business.
- Sterling Business Agents Pty. Ltd., maintains a large computer database of buyers.
- A reputable licensed business broker is experienced in the WHEN, WHERE, and HOW of marketing your business.
What are the risks of buying a business where the Vendor has not used an experienced licensed business broker?
- Inappropriate, illegal and unenforceable contracts and documentation.
- No buyer protection.
- Poor presentation, and lack of necessary information.
- No independent stakeholder.
- No other similar businesses are available for comparison.
How do I know the person selling the business is a bona fide seller and is the real owner of the business?
Before any business can be offered for sale it is the broker’s responsibility to determine and confirm in writing that the Vendor is the legal owner of the business and also has given the broker written permission to offer their business for sale. As a Purchaser this is your guarantee of title.