Purchasing a business can be one of the largest transaction you undertake in a life time. No-one can afford to make a mistake with thousands of dollars at stake.

It has been a published view that 75% of all businesses fail in the first five years of operation.

At Wilsons we dispute the accuracy of these reports but we recognise that the chances of failure are far greater when buying a business privately or directly from an owner.

At Wilsons Business Brokers, every week we have the misfortune of telling some unfortunate vendor that their business is unsaleable. We later find that the business is sold privately and some poor unfortunate purchaser has not known of the problems that lay in waiting.

The Australian Institute of Business Brokers (AIBB) recently conducted a survey which revealed that the failure rate of businesses sold by it's members was less than 2% over a five year period.

Business Brokers are a great safety net for purchasers in that if, in the brokers opinion, a business is unsaleable the broker walks away and leaves the problem with the vendor who often then distorts or even misrepresents in an effort to find some unsuspecting purchaser.

All businesses being offered for sake by WIlsons Business Brokers will have a tangible value and withstand the scrutiny of any expert in the field.

Prudent business brokers are aware of market trends and can offer purchasers valuable guidance and information to ensure the purchaser gets what is being bargained for.

Whilst Wilsons Business Brokers have the largest one-stop-shop of business listing for sale in their region, they don't always have what it is that you might be looking for. In these instances Wilsons Business Brokers may know of a listing that could be purchased or they may know of one about to come on the market. It is always worthwhile registering your requirements with Wilsons because you just never know when they may have the perfect business for you.

If Wilsons don't currently have for sale the business you are searching for, Wilsons can do the searching for you. Wilsons are often engaged to try and find specific types of businesses for people.

From time to time medium sized businesses often want to expand their current operations through the acquisition of some suitable compatible business.

To best understand your requirements it will be necessary for you to meet a representative of Wilsons Business Brokers. All your requirements and expectations will be discussed in total confidence.

To make an appointment with a sales representative of Wilsons click here.

There is a compulsory process of self analysis that Wilsons believe every intending business purchaser should undertake. It is first of all essential to determine your alternat earning capacity (AEC). This is done by determining what you are worth in the labour market if you stepped out and sought to obtain a job as an employee for someone else. The second thing to determine is what a reasonable return on the funds you intend to invest with the acquisition of a business.

Example:

If you intent to work 6 days in a business you may be able to find employment where you are paid a salary of $40,000 per annum.

If you intent to spend a total of say $300,000 on the acquisition of a business it is important to know what that $300,000 could return you if invested in something other than a small business. You could buy some real estate, you could invest in the share market, or you could lodge the money with a bank or lending institution and earn interest. Each of these alternatives has advantages and disadvantages, but if you assume that a return of 10% is a good target, this would provide a return of $30,000 per annum.

The sum of these two determinations ($30,000 plus $40,000) would suggest that, if you do not buy a business and instead obtain a job in the workforce and place your money in some other form of investment, your alternate earning capacity is $70,000.

If you chose to buy a business it is reasonable to expect that you will get a return of somewhere between 25% and 40% on your invested funds. i.e. $75,000 - $120,000 per annum plus a salary to renumerate yourself in relation to the effort provided.

Now you are on track and know what sort of return you should expect and look for when purchasing a business. Wilsons Business Brokers will guide you in the process. Phone Wilsons Business Brokers on 4962 3388.

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