Buy a Business in Australia

Important Points when Buying a Business

Every day I receive emails from purchasers and business owners needing assistance in selling or buying. I use my many years of experience in business sales and running a chain of shops to assist them in the right decision for them. It’s a bit like a psychologist really. Its just not a sale for me, it’s a dedication.

The first thing to remember is you must get it right the first time because the business you buy you should be in for at least 4 to 7 years. I advise my vendors and purchasers to give yourself a 4 year plan. You may love the business so much you want to stay longer but the majority of people are burnt out after 4 years and are looking for a change, especially if it’s a café or restaurant, and if you feel it’s wearing you down the business will suffer if you don’t sell then and of course you won’t achieve a good price if the business is run down.

Finding a Business!

I find in my business newspaper advertising brings me very little sales. My statistics tell me a genuine purchaser will go to the search engines to find a broker and scan the listings. We do use the papers to get our website name out there and this works to our advantage far more than a long expensive add that lasts one day. Our site is the most valuable tool we have and our journal Best Business Buys gives you months of good reading to give a purchaser information on how to buy and where. So scan the net under search engines business brokers, if you can not find a business on our site there are other brokers listed that may be of assistance to you. Or better still tell us what you want and we will go find it for you!
Anywhere in Australia.

Problems with Newspaper Adverts

You will often see a private add in the paper and you may think this is great, we will cut out the agent and get the business cheaper.


Now I am not saying all private adds are no good, some may work out, but in my experience those people who try to do it themselves do it because they have either been burnt by an agent not servicing their business, so they think they will do it alone, or the profit is low in the business and they need a quick sale, or of course the common one the agents fee offends the owner and he thinks he can do it better himself. Or he may think the advertising costs to sell his business is less if he dose it himself.


When you are dealing with a private sale you feel uncomfortable saying what you really think, and uncomfortable asking certain questions so as not to offend the owner. With a broker you can be open and tell us all your concerns. We will work them out with the owner and rectify them if possible. We as the agents should now the business as well as the owners, that’s our job. I look at a business when I list it as my own and sell it as if it was my own. A good broker should be there to help you with that sale to the end. Too many owners who try to sell themselves end up in conflict with their buyers.

And after a few months of failures TRYING to qualify buyers he finds out it’s not that easy & worst of it he has given out his figures all over town for all the clients to see, so the business you are looking at has been exposed to untold people who may be using that information to start down the road.

The poor owner ends up coming to us anyway. Remember if you stay with the broker handling the sale of the business he should be the one to assist you all the way, and if that business does not work out the best for you he most often then not will find you another.

You Have Found the Business you Want to Buy!

The first thing you will need is finance. Are you already cashed up? Or do you need finance. Are you on a redundancy package? These are all the questions your broker should ask before you plunge into a sale.

We are financiers and finance most of the businesses we sell without supplying figures to obtain the loan. Remember the majority of businesses do not always show the true figures of the business but if you look back at the ad backs of that business the business may be a very viable business. Most accountants will reduce the net profits for a business, so the tax implications are not so high for that business. If the adjusted profits are good the business is saleable and your broker will advise you of this at the time. But never, ever buy a business on hearsay of the takings, if its not in BALACK AND WHITE in the accountants formatted profit and loss statement then its not considered saleable. Never buy unseen profits.

Business Finance

For finance to buy the business you will need to complete an application. This way you will know how much you can afford to borrow on the business you are looking at. Not all Brokers are financiers! We are and sell businesses because of it. We use a financier who lends without looking at the figures of the business you are about to buy. But with other institutions such as banks or private lenders you will need the following.

We will arrange finance for you without an up front fee. Most finance brokers charge a fee of between $3,000 &$ 6,000 to get you your finance. We at Arwon Realty do this FREE because we are paid on settlement to sell the business by our vendors (owners). It is in our best interest to get the finance for our buyers so we in turn can get the business sold, and therefore offer a better service to our vendors when listing their business. We finance 90% of all business sold!