What does it cost to sell a business.?
Under the Real Estate and Business Agents Act REBA Act a broker may only charge a selling fee on SUCCESSFUL SALE, thus the fees are paid on settlement. This means that a broker works for the client on a contingency basis of being paid on success only. A broker may also seek a contribution to marketing and for the preparation of a Business Information pack. These costs are discussed in detail before a business is listed for sale.
How long will it take to sell my business?
We usually seek an exclusive period of time to effect an offer of between 90 and 180 days. Somje businesses have very high demand and will sell quicker, others will take up to 180 days plus.
How long does it take from date of contract to settlement.?
Usually I allow 60 to 75 days. I have had settlement in less than 30 and over 150 days. All depends on the number of conditions and the time needed to fulfil them. I will always look to have all conditions start from contract date, ie finance and due diligence have the same number of days to clear.
Surely a Perth Broker will get me a better deal quicker?
As I worked in the Perth market for a while and was part of a Broking Group based in Perth I know that the general conception is that a Perth Broker is better. A review of the facts though makes this strategy frustrating and not give the desired outcome.
They have experience in the specific industry or have knowledge that will expertly price the business for sale.
They may have, but do they have the on the ground knowledge about trading conditions, eg new roads being introduced etc etc or a similar business that recently sold. That makes a local broker always the best choice.
They have buyers ready.
Yes but they still may still reside in Perth and there is the issue of selling the house, moving schools, moving to the South West full time….sometimes it is an ambition that is not able to be realized.
They can control confidentiality far better than a local broker?
How do they deal with local people, do they come down to Busselton or Margaret River or Bunbury to present the business. Or does the owner do the brokers’ job and present it to the buyer.?
