Melbourne Powder Coating Business and Factory Sale Saves Seller $125,000 In Commission
If you’ve been thinking about selling your business, now is proving a great time to do it. Commercial service businesses are particularly in demand right now, as buyers are looking for businesses that can provide them with a steady income during uncertain times. Thankfully in Victoria, the positivity is back, and businesses are starting to see a light at the end of the tunnel. In fact, according to a recent report from the ABC, business owners are now more confident about the future than they have been in months. And that’s good news for anyone considering selling their business.
Michael contacted Bonza in January 2022 because he decided that after 19 years of running a successful powder coating business, he was needing a break. He not only wanted to sell the business but also the freehold factory that the business was run out of. The multi-million dollar asking price meant that Bonza was looking for a particular type of buyer for this opportunity and this is where our professional, targeted marketing proved very successful.
After 3 short months, Michael had received 52 enquiries and the first written offer on his business. Advertising is essential to finding a buyer. Clever marketing in the right locations helps you reach a wider audience and sell your business faster. Bonza’s professional representation was extremely helpful in not only getting the best possible price for Michael’s business while taking into account the market conditions but also providing support to both parties the entire way through the sales process.
After the offer was accepted by Michael, the due diligence process began. Due diligence is an important part of any business sale. It allows the buyer to verify that the business is a sound investment, and that the seller is providing accurate information. The due diligence process typically includes a review of financial statements, contracts, and other legal documents. The buyer may also visit the business premises, meet with employees, and speak with customers. In some cases, the buyer may hire an outside firm to conduct due diligence on their behalf. Ultimately, the goal of due diligence is to help the buyer make an informed decision about whether or not to purchase a business.
Michael was over the moon at the fact that he was able to sell his business and freehold combined for a low flat rate marketing fee and 2.5% settlement fee and in turn, save upwards of $120,000 in commission fees compared to the industry standard rate of 7-10%.
