Anthony Papas Built ABBA Group Around Preparation and Expertise
Anthony Papas Built ABBA Group Around Preparation and Expertise
Anthony Papas knows first-hand that selling a business can require more than finding a willing buyer.
In 2003, after opening four cafes in Sydney’s CBD with a business partner, he became closely involved in negotiating the sale of the businesses. The experience changed the direction of his career.
The business broker handling the transaction said, “You’re quite good at this. You should come and try business broking.” After taking a couple of months off, Anthony followed that advice.
Today, as the founder of ABBA Group, he leads a team of 12 brokers focused on transactions in a unique part of the market that differs from traditional small-business broking.
From Owner To Broker
Those cafe sales introduced him to the practical challenges of negotiating with a prospective purchaser and helped him discover an interest in the selling process. It also helped him understand the importance of the vendor’s position.
“Selling a business involves more than agreeing on a price, and at ABBA Group, our approach focuses on helping owners prepare for the sale process and navigate the decisions that follow including through the marketing, negotiation and settlement phases.” Anthony commented.
A Distinct Market Position
ABBA Group operates in what Anthony describes as a sweet spot between traditional business brokers and the larger transactions handled by top-tier accounting firms. They focus on businesses with transaction values generally ranging from $2 million to $40 million.
“We’re in between where a traditional business broker, and Big-4 accounting firms would play,” he explained. ABBA Group generally works side by side with accounting firms, offering consultancy, due diligence and specialist advice.
The distinction matters because the buyers, processes and challenges involved in these transactions differ from those encountered when selling a small cafe or other modestly valued business. ABBA Group’s work targets owners and buyers in a more sophisticated market segment.
The firm has 12 brokers, most of whom work remotely or spend time meeting clients. These brokers cover a range of industry specialisations.
Industry Expertise
ABBA Group does not specialise in one industry, rather, Anthony has built an experienced team with expertise across several sectors. These include software and technology, logistics and freight forwarding, childcare, manufacturing and NDIS.
“I’ve got two brokers who focus solely on tech software businesses. That’s pretty much all they sell, and they know that space inside out”. Anthony observed. The group has successfully sold tech businesses to local and major offshore players.
This internal specialisation allows brokers to develop a deeper understanding of particular industries and the businesses operating within them. That knowledge matters when assessing an opportunity, identifying potential buyers, and understanding what makes a business attractive.
For Anthony, the model combines the resources of a team with the sector knowledge of individual brokers. It also supports the firm’s work with both sellers and buyers, each of whom may require a different approach.
Preparation Creates Value
Preparation is central to Anthony’s approach to selling a business. Rather than taking on every opportunity, ABBA Group assesses whether a business is ready to go to market, whether its financials are in order and if the expected price is realistic.
The firm may spend up to 3 – 6 months working with an owner to prepare their business to go to market. This can involve due diligence, reviewing the business’s financial information as well as internal structure and ensuring that the opportunity is presented in a way that gives buyers confidence., and achieves a premium price.
“We believe the better you prepare, the higher the success rate,” Anthony noted.
He cited a recent transaction in which ABBA Group achieved $3.5 million more than the initial market-value assessment. In his view, the result reflected the preparation undertaken before the business was presented to buyers and the competition created during the sale process.
The firm reports a success rate of more than 85 per cent from the businesses it lists to those it sells. Anthony attributes this success to being selective about the opportunities it represents.
Managing the Sale Process
ABBA Group’s marketing approach can include an expression-of-interest campaign, particularly for technology businesses. The initial price is a guide based on the broker’s assessment of the business’s value and the likely market response. The eventual result may differ, sometimes by several million dollars.
“When we have a business in a popular segment, we complete due diligence but then open the data to multiple prospective buyers at the same time. We specify timelines for offers and due diligence,” Anthony explained.
He described a recent logistics transaction where nine parties were given access to a reduced set of data. Six offers were received, allowing the vendor and broker to compare the proposals before selecting a preferred buyer to proceed with negotiations.
The offers in this case differed not only in price but also in their proposed terms.
“With businesses, it’s very different to how a real estate transaction would unfold,” Anthony noted. “You might have two or three parties that are all prepared to pay the same amount of money. But what differentiates those buyers? Some include earn-out periods, different payment arrangements or requirements for the owner to remain involved during the handover. Others seek a much faster transition.”
The broker’s role is to help the vendor assess the complete offer, including the terms and the buyer’s suitability, rather than focusing solely on the headline figure.
Beyond The Public Market
Not every ABBA Group transaction involves publicly advertising a business.
“Sometimes we get businesses that want to sell but don't want to advertise,” explained Anthony. “In these cases, we identify potential buyers from our database and by direct contact.”
The firm discusses the list of potential buyers with the vendor, as the owner’s industry knowledge and existing relationships can influence which buyers they approach and not approach.
In some cases, ABBA Group has moved from listing a business to completing a sale within 12 to 16 weeks. Anthony sees the combination of preparation, targeted buyer engagement and competition as an important contributor to those outcomes.
A Long-Term Profession
For Anthony, the qualities of an excellent broker include preparation, attention to detail and the ability to understand a business thoroughly. “It’s hard selling something you don’t understand,” he commented.
“And building the right relationship with the vendor,” he continued. “You need to have honest conversations with vendors when a result falls short of expectations. If you don’t build that relationship up front, it has a negative effect at the end.”
That relationship-building extends beyond individual transactions. Anthony said ABBA Group has receive many referrals from businesses it has sold, while some former sellers have returned as buyers two or three years later.
For anyone considering a career in business broking, he recommends a realistic understanding of the financial and professional commitment involved. Fees are generally success-based, meaning brokers may spend months working on a transaction without receiving a commission if it does not complete.
He believes people with business ownership experience, an accounting background, or sales expertise are well placed to succeed. Industry knowledge can also become a significant advantage as a broker develops a reputation and a network of buyers and sellers.
“This industry isn’t for those seeking overnight success,” Anthony said. “It’s all about longevity, building client relationships and honing industry expertise.”
Looking to the Future
ABBA Group’s opportunities lie in sectors that are performing well and in identifying businesses that are ready for a successful transition. Anthony said the firm has experienced a good year despite economic challenges.
With a career spanning over two decades, he sees particular potential in owner-operator businesses, where after many successful years, owners are looking at retirement. In cases where a family member does not want to take over, a sale is a practical pathway for the owner to move on and a new opportunity for the buyer to take on an established business.
For Anthony and the team at ABBA Group, the focus remains on businesses where preparation, industry knowledge and a carefully managed sales process can help owners achieve a successful result.
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