Newsletter
REALTIES BUSINESS BROKERS LTD MREINZ
THE CRITERIA FOR THE SUCCESSFUL
IN THE PRESENT MARKET
Establish what price should be asked
This is different from the value of the business and is usually based on Return on Investment, compared to other similar businesses the prospective purchaser is considering and others that have sold recently.
Establishing a suggested price is an art, rather than a science. No vendor wants to undersell their business, but if the asking price is too high it will be almost impossible to attract any interest.
Purchasers are doing far more analysis before they commit to buying a business. They require up to date accounts, sales and supply contracts, staff contracts, etc. What happened three years ago seems to be less relevant today.
Marketing
The business must be exposed (confidentially) to as many prospects as possible to ensure that the best price is achieved. Just quoting the opportunity to a database will not achieve this desired outcome. Being on high performing websites is vital. Often vendor funding of advertising is required to achieve the maximum coverage required.
Terms of
Vendors who provide finance will often achieve a better price for their business
Realties business brokers Ltd mreinz
Email: info@realties.co.nz
Website www.realties.co.nz