Call now: 1300 716 595

Sydney Auctions

How It Works

Step 1

Submit Business Information for Appraisal

Submit your Business information into our “Asset Appraisal” form on the home page of our website (or simply call us on 1300 716 595).

One of our business appraisal experts will get back to you within 24 - 48 hours to introduce themselves, ask you some general questions about your business and then request your financials for review to complete your desktop appraisal.  Make sure you have ready – Past 2 years tax returns and your most recent financial statements as prepared by your external accountant, including profit and loss statements and balance sheets.

Make sure you have available your most recent financial statements as prepared by your external accountant including profit and loss statement and balance sheet & a list of what personal expenses (if any) the business has paid or other non-business expenses.

 

Estimated Time Frame: 24 - 48  Hours

Step 2

The Appraisal

Once we have received your tax returns and business financial’s we will request a second call with you to do the final desktop appraisal.  There are 13 factors we consider when appraising your business, the most important being the net profit.

 

Estimated Time Frame: 1 - 5  Days

Step 3

What your Business could Sell for if Sold today ...

Once the appraisal has been completed one of our experienced business brokers will give you a range as to what your business could sell for, if sold today…

 

Estimated Time Frame: 1 - 5  Days

Step 4

The Asset Divestment Strategy

We are experts with the creation & execution of divestment strategies for the sale of Businesses.

If the desktop appraisal meets your expectations, we can create a divestment strategy & assist you with the sale of your business.

If you instruct us to commence the asset divestment process, we will prepare a divestment strategy with our recommended sales methodology or mix of methodologies, including a tailored marketing schedule and budget for your approval.

  

Estimated Time Frame: 2 - 5 Days

Step 5

The Agency Agreement

When you instruct us to proceed to the Business Sale stage, we will provide you an Agency Agreement document for your approval & signing.

An agency agreement is a legally binding contract between you (the vendor) and us (the agent).  It includes your (the owners) details, the agent's (our) details and the Business details.

It also details what you (the vendor) and us (the agent) have agreed in relation to responsibilities, fees & charges for our professional services in acting on your behalf to assist you with the sale of your Business.

 

Estimated Time Frame: 1 - 5 Days

Step 6

Prepare a Contract of Sale

You (or your Solicitor) are responsible for developing a Contract of Sale for your business.

This documents what is being sold & what inclusions are in the sale (eg: what Domain Name(s) or plant & equipment may be included).

Generally, the purchase of your business is an asset purchase agreement, that means you are selling the assets of the company, not the Pty. Limited company itself.

 We hold the Contract of Sale & provide to a prospective Purchaser on request.

  

Estimated Time Frame: 2 - 4 Weeks

Step 7

Information Gathering

Once the agency agreement is signed, we will request documents and other information from you so we can create a compelling story about your business.

This includes, but is not limited to; 5 years of financial statements including profit and loss statements, balance sheets, payroll reports, licenses/trademark information, frequently asked questions about the business, staff numbers & years of service, organisation chart, history of the business and the business owners.

  

Estimated Time Frame: 5 - 10 Days

Step 8

Copywriting & Graphic Design

With all the information we have now gathered we set you up with an interview with our in-house copywriter. They take the information gathered, complete a 1 hour interview with you and then take your information and craft a very compelling story, executive summary and edit the Information Memorandum to tailor a story to make your company extremely attractive to buyers.

  

Estimated Time Frame: 1 - 5 Days

Step 9

Information Memorandum

This is the document we use to market your business to buyers that explains your business, what it is, how it makes money, we recast your financials to “add back” personal & other non-business related expenses to reflect the “adjusted” business profit.  All the information gathered goes into this 15-30 page document.

  

Estimated Time Frame: 7 - 14 Days

Step 10

Business to Market

We then offer your business to the market.  We use three different marketing approaches to find a buyer for your business.

  • We promote your business to our existing buyer database.
  • We promote your business via our marketing channels. We have 11 different marketing channels we use to find people looking for a business to acquire, just like yours.
  • We look for synergistic buyers and create a target list; largest competitors / suppliers / distributors and contact them directly.

Buyers enquiries - from our marketing all interested buyers will have a range of questions about the business – we answer all the questions we can ourselves, if we can’t answer we get the answers from you and then respond to the buyers.  Buyers will also request a management call with you to talk in more detail about the business, financials and operations.

 

Estimated Time Frame: 3 - 6 Months

Step 11

Accept an Offer

All interested parties put in an initial offer and you decide on the best buyer depending on price, terms and who the buyer is.  We negotiate with all the buyers until we get to final agreed amount.  The winning buyer then gets an exclusive diligence period to verify what we have claimed about the business.

  

Estimated Time Frame: 14 - 21 Days

Step 12

Due Diligence

The buyer will be given an exclusive period to verify financials and go through tax returns, bank statements etc. to verify the business is as advertised.  Generally, a 2-6-week process.

  

Estimated Time Frame: 2 - 6 Weeks

Step 13

Contract of Sale

Signed, Exchanged & Deposit Paid

The winning buyer then signs the Contract of Sale & pays the Deposit, normally a percentage of the agreed Sale Price.

 After the contract is signed and the deposit is paid there is an agreed settlement period before keys, Domain Names, Leases & ownership of the business & its assets are transferred to the buyer.

 

Estimated Time Frame: 1 - 5 Days

Step 14

Settlement

During the settlement period your solicitor or we hold the deposit funds in a Trust Account & at settlement date the buyer transfers the funds to the Solicitor.  You then transfer assets.  Once the buyer (buyers solicitor) confirms receipt of the assets the sale proceeds are released to you as the seller.  We are paid at that time.

 

Time Frame: 2 - 7 Days

Step 15

Post Sales Training

After settlement, there is an agreed transition period where you help the new buyer learn about the business, be introduced to employees/suppliers/customers etc.  This is normally negotiated and agreed as part of the sale negotiation process as to how hands on and how much time this will be.

 

Estimated Time Frame: 1 - 6 Months

CALL NOW – 1300 716 595

Call us now for more information on how we can assist you in developing your asset divestment strategy

Contact Us

The Sydney Auctions MARKET PLACE is where SELLERS go to turn their assets into CASH.

Sydney Auctions provides a turn-key solution for your asset divestment requirements, from creating the marketing strategy to sending the cheque.

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