Tony Latessa Still Answers the Call After 45 Years in Business Sales
Tony Latessa Still Answers the Call After 45 Years in Business Sales
AIBB Victorian Chair Tony Latessa has just about seen it all in his 45 years as a business broker. These days, he’s continuing to give back, lending his expertise to the AIBB’s newly launched hotline and supporting fellow brokers as they navigate increasingly complex sales.
“I’m on the helpline AIBB just started. The first question came through the other day, and it was a great question. I thought, ‘If this is the quality of the questions we receive, it’s going to be interesting’.”
With decades of experience behind him, Tony knew the value of collaboration. “A few of us got together and worked out a quality answer. You don’t get that level of support outside the AIBB,” he remarked.
As the State Chair for Victoria, Tony also holds strong views on the current market and he’s not shy about sharing them.
Victoria Market and The Governments Impact
Tony is clearly frustrated by what he sees as a lack of government support for business owners.
“Unfortunately, we have a state government that is not conducive to fostering business investment, and it’s been that way for quite some time,” he lamented.
“Historically, if we have some reasonably good business news, business activity increases quickly, but bad news will drive it down just as quickly,” he observed. “If Western Australia took off, we would follow, but this time it’s not happening.”
“We are suffering because of the total incompetence of the government. People have lost all confidence in the government and themselves,” he explained.
He quoted the example of a client who has been a baker all his life and sold his bakery 15 months ago. After a long holiday, he wants to buy another bakery and has found one. But, despite his undoubted experience, he lacks the self-confidence to go to contract.
Tony continued, “He's thinking, ‘I’ve got $1M sitting in the bank. Why am I going to take a risk and buy that business, even though it's priced correctly and everything clicks?’ We've got a government that's not going to help him out at all, and that can change its mind at any given time.”
Consequences of this situation
Tony conceded that some businesses are selling. “Medical centres, manufacturing, and larger service businesses are moving, but any business valued at less than $1 million is slow to sell,” he continued.
“My last two or three sales have all been over the $2 million mark, and we have a couple more of those coming through. One of those sales, I had three hopeful buyers who wanted that business.”
“Smaller businesses, particularly in the hospitality industry, are becoming unsellable. Where we used to be selling them for $200,000 or $300,000, now they’re selling for about half that, some even lower,” he observed.
“But, even with the doom and gloom in Victoria, investment money is rolling in to snap up these larger businesses. And they’re the businesses we like because the buyers are usually experienced business people. Yes, they do thorough due diligence (which we prepare for), but they are also ready to make a decision, so the process flows smoothly,” he concluded.
Tony’s Love of Business Broking
“I love helping people,” Tony began.
“When I started in 1980, I joined AIBB, and I had a few questions about operating as a broker. So I called another AIBB member, and he answered my questions. I gained much of my experience by being guided by mentors, and now I’m mentoring five brokers.”
Tony admitted he is trying to wind down, but that’s not as easy as it sounds. “I attempted to retire nine years ago, but one of my mentees at the time convinced me to stay on for six months while she also prepared for an exit. We are both still in the game!” said Tony.
These days, Tony refers most of his leads on to other AIBB brokers. “They appreciate the opportunity, and we have to look after vendors as much as we can. They are having a hard time, so we bend over backwards to help them any way we can,” he remarked.
Why Join the AIBB?
“If you were a doctor and there was only one group that handled all the doctors in all of Australia, would a doctor not join them?” Tony asked in reply.
He continued, “There’s only one business broker group in Australasia and that’s the AIBB, so it makes sense that a business broker would join.”
But that is not the main reason to join. Tony explained, “The biggest thing I see AIBB provides is member support. Whether it is recognition, education, resources, or assistance, AIBB is there. As a member, I get to help other members, but I know the same help is there for me.”
“I don’t consider that we’re competitors. We’re all trying to help each other because we know it always comes back,” he emphasised. “We’re all volunteers who support the whole group.”
Thoughts on the AIBB Conference
Tony recommends that all members attend the conference.
“I’ve been to many of them and I’ve always got something out of it. I love the guest speakers. They become part of us and often join in with the conference activities, and we get a chance to ask them questions about any topic, which is when you can pick up all sorts of interesting information,” Tony highlighted.
“And, obviously, I like getting together with all the guys I only see once a year. Even though we might speak on the phone quite often, it’s when we meet in person that we find out what’s really going on and where they might need assistance,” he added. “If necessary, I’m happy to hop on a plane to help people wherever they are.”
After 45 years as a business broker, Tony is still as enthusiastic as ever about business broking and AIBB.
“I like where AIBB is headed even though I’m only a minuscule part of it.”
Tags: selling exit strategy tips small business business broker
About the author
