AIBB Deal Maker: How Jonathon Parker is Dominating Hospitality and Retail in WA
AIBB Deal Maker: How Jonathon Parker is Dominating Hospitality and Retail in WA
Winning the prestigious AIBB Deal Maker of the Year for 2024 was a pleasant surprise for Jonathon Parker, a creative business broker in Perth. “It was quite a surprise actually, and at my first AIBB Conference. But it was really good to actually attend the conference, and then it was a great honour to win that award.”
The award recognises Jonathon’s success in producing outstanding results for buyers and sellers during the last year. That success was built on his ability to negotiate effectively and identify strategic options based on his 16 years of experience as a business broker.
Some of the deals completed during the year were complex and involved high-value businesses, allowing Jonathon to use his knowledge of the Western Australian market and his problem-solving skills to overcome the inevitable hurdles that occur during these transactions.
What is your formula for success?
Jonathon’s brief reply? “Answer the phone and work hard!”
He then elaborated, “There’s no real secret to it. It’s just trying to help people. For example, landlords are reluctant to deal with a first-time business owner. I can help them negotiate a suitable arrangement so everyone wins.”
“I am excited when I can help someone into their first business and see them develop and grow the business to the stage where they sell that business and buy an even bigger one. That’s what motivates me - clients' success drives my success,” said Jonathon.
Jonathon’s Origin Story
Like many business owners in transition, Jonathon found it challenging to find the right broker to assist with his next venture. He started his career in residential real estate and eventually grew his own agency. "We had 43 staff in that business, so it was quite large," Jonathon shared.
At the age of 27, Jonathon sold that agency.
He continued, “I started looking to buy another business without much success. I came across a family friend who was a business broker and had a chat to him. He convinced me that becoming a business broker would be a great opportunity. I also saw a bit of an opening in the marketplace as I wasn't getting that much attention from any business broker I talked to.”
Setting up Platinum Business Sales, Jonathon has deliberately aimed to limit the size of the business to minimise operational problems. The business now consists of Jonathon, his administration manager and a very experienced rep who works from home.
Jonathon enjoys being able to focus on clients and their needs without having to deal with administration distractions. “And you quickly find out that you can make just as much by yourself without all the drama,” he added.
This focus has enabled Jonathon to position Platinum Business Sales as the business brokers of choice in the hospitality and retail sector in Western Australia (and contributed to his AIBB award).
Due Diligence
For Jonathon, the due diligence process starts well before the business is listed. “As part of the initial business appraisal, I study all the financial statements in detail to make sure the business stacks up. I don't want to take businesses that are a little bit dodgy,” he explained.
“Occasionally I have listed businesses that haven't really been up to scratch. We have been able to sell them, but the buyer understands the situation and buys at a bargain price.”
Most contracts allow a due diligence period of around 21 to 30 days. During that time, Jonathon sees his role as an information gatherer for the buyer and the buyer’s professional advisers.
Although he usually has all the information ready, a “left-field” request will occasionally require urgent attention. “And then we wait until they've completed all their analysis and satisfied themselves,’ Jonathon commented.
“I think we sold 70 businesses last year, but we would have lost 20 in fallovers. Some things are outside of our control, and you just have to do the best that you can. But, In most cases, people sign off and say they're happy with everything and want to proceed,” said Jonathon, “and then we move on to the settlement process.”
State of the Western Australian Market
Jonathon commented, “It's been a pretty good market here in WA for the last three and a half years in the hospitality and retail business space. The highest demand that I'm seeing at the moment would be for liquor stores. They are definitely in demand. We've sold probably 50 liquor stores in the last three years and are setting records on prices. They're in constant high demand and low supply.”
“But other types of businesses are still selling,” he continued. “If they are priced reasonably, we can find a buyer.”
Summary
Specialisation, a deep understanding of the local market, and a willingness to work hard have become a successful formula for Jonathon Parker. With his many years of experience and ability to focus on the needs of his clients, Jonathon is excited about his future in the business broking industry.
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