The time a business stays on the market depends on a some key factors:

• The size of the company
• Recent business performance
• The industry it’s in
• How realistic the asking price is

As a general guide, you can expect an effective business sale process to take between 6 and 12 months.

If you would like a more accurate timeline for your business specifically, please book a call with our team here.

Business owners choose to be represented by an intermediary like a business broker for a few key reasons:

•  So they walk away with more money
•  To save stress and time
•  So their intention to sell remains confidential

How a business broker helps owners sell for more

Business brokers help you sell for more in two main important ways.

First, they get more people interested in your listing. The more demand for an asset, the higher the price. Good business brokers will leverage their buyer database from previous sales, their professional networks and their research teams to get a number of parties competing against each other for your business which will drive the price up.

Second, business brokers act as experienced negotiators and advocates during the sale process. While most owners are selling a business for the first time, brokers bring years of transaction expertise to protect sellers from sophisticated buyers who might otherwise gain the upper hand. As neutral third parties, they can negotiate more aggressively and objectively than emotionally invested owners, helping drive better deal terms and higher sale prices for their clients.

How business brokers help save owners stress and time

Business brokers are like a shield for business owners. They screen tyre kickers and only introduce a business owner and their management team to the conversation when there is serious intent and means. Additionally, having taken part in many transactions, they are a calming and guiding hand throughout the sales process. Helping business owners understand what is normal and introducing them to other professionals who will help with a seamless transaction.

How business brokers help business owners stay confidential

Oftentimes the party who ends up purchasing a business is a competitor or a supplier. It’s in a business owners best interest for the broader market not to know they are listed for sale. A business broker alleviates this risk by creating an non-identifying ad and approaching potential targets on your behalf. If they do express any interest, the the broker will then get them to complete a Confidentiality Agreement so they are legally bound to keep the information shared about your business confidential.

Business broker and corporate advisory fees to take a business to market are typically structured as follows:

• An upfront engagement fee
• A monthly retainer fee, rebated from the sales commission
• A success fee when the business sells (% of sold price)

The success fee sales commission varies depending on the size of the transaction. The following is a guide of what you can expect depending on the size of your business:

• Less than $1 million: 8% OR a Minimum Fee ($30,000+)
• Between $1 – 5 million: 6 – 8%;
• Between $5 – 10 million: 4 – 7%;
• Between $10 – 25 million: 4 – 5%;
• Between $25 – 50 million: 2.5 – 4%;
• Between $50 – 100 million: 2 – 3%;
• Between $100 – 250 million: 1.5 – 2.5%;

Quality business brokers use their expertise to more than cover their fees from the extra money they sold your business for vs. if you represented yourself in the market. 

At Morgan Business Sales, our fees are determined on a case by case basis. For a complementary quote, please book a call with our team here.

There are a number of quality options available for selling a business in Australia. Owners who choose to be represented by Morgan Business Sales tend to do so for the following reason:

• Track Record – We sell more multi-million dollar businesses than anyone in Australia (view recent sales)
• Buyer Database – With the number of transactions we do, we have a well developed database of business buyers who we will get your listing in front of
• National Reach – We are the only brokerage with representatives in every major city in Australia, ideal for sellers with locations in multiple states
• Modern Systems – We heavily invest in proprietary technology that makes us much more effective and efficient in what we do
• Confidentiality – Our purpose built systems give us the ability to offer market leading confidentiality for your business information; we can lock enquirers out from your information at any time

One of the most common ways owners exit a business is after they receive an offer from someone like a competitor. While this can work out well, it often doesn’t. We commonly hear two stories:

• What a waste of time, we spent months talking with them only for them to give us a lowball offer
• On reflection, I think we sold ourselves short and could have sold for much more

While this doesn’t mean you shouldn’t entertain an offer, please keep the following in mind – the more people competing to buy your business, the higher the price will be.

You need to weigh this up vs the cost and time associated with going to market, but our belief is that we would prefer to know what’s out there vs taking the money and always wondering what could have been.