The Most Expensive Time to Sell Your Business Is… When You Have To.
The Most Expensive Time to Sell Your Business Is… When You Have To.
Right now, small business owners across Australia are all feeling the squeeze, costs are climbing, wages are rising and consumers are becoming more selective with their spending. As a result, many businesses that enjoyed years of reliable growth are finding themselves stuck in neutral, some are even going backwards.
We're having more conversations than ever with owners who have seen revenue plateau, margins tighten, and confidence fade, their solution is often the same. Maybe it's time to sell.
Unfortunately, that decision, made at the wrong time, often becomes the most expensive mistake of their business journey.
Business owners often look at what their company achieved over the last five or ten years and believe the market will value those accomplishments accordingly.
Buyers don't. They pay for the future, not the past.
I'm seeing sophisticated buyers leverage current market conditions to their advantage, citing economic uncertainty, reduced access to capital, and tougher trading conditions to justify lower offers. Whether those concerns are temporary or permanent is almost irrelevant. If the data supports the argument, buyers will use it.
The smartest owners don't prepare for sale when they want to exit; they prepare years earlier.
The best transactions happen when a business is performing well, growing consistently, generating healthy profits, and presenting a clear path forward for a new owner. I see time and time again, that's when buyers compete, multiples expand and that's when sellers retain leverage.
Our role as a broker is not only to help sell the business, but also to partner with you to help plan for the exit. We will help you understand what the market will pay, what drives value, and what needs to happen between today and exit to maximise the result.
Too many owners seek advice when the decision to sell has already been made. By then, the market often dictates the outcome.
The owners who achieve premium valuations start the conversation early.
Because here's the truth…
You can't negotiate with the market. You can only understand it, prepare for it, and position your business accordingly.
Consult with a broker while times are good. Build a strategy before you need one. And remember… the difference between a good exit and a great exit is rarely luck.
Tags: business broker tips business owners small business
About the author
David Shan
With over seven years of experience in corporate sales and recruitment, David Shan brings a unique blend of industry knowledge and practical expertise ...
