Frequently Asked Questions

For Business Buyers                                 For Business Sellers

How do you value a business?

That depends on who the valuation is for and for what purpose.

We find some of our clients just want to sit down and talk about the sort of issues that they should be thinking about before they either sell their business or make an offer for a business they’re considering.  Trio’s experience in business sales and advising buyers means we have loads of practical ideas and suggestions.  Our fees for this service are charged by the hour.

If the business valuation requires a much more detailed analysis and completion of a business valuation report then Trio considers and reports on a number of matters, some examples of which include:

• The historical background of the business
• Current ownership
• The sources of information
• The industry and market position
• The adjustments to the base data upon which the valuation is made
• The valuation methodology

Fees are again time based.

Listen to Anne-Maree Denaro of Trio Business Intermediaries discuss Business Valuations on Business In Focus

More on business valuations

Do I have to pay a broker when buying a business?

If you’re buying a business that is being sold through a broker the broker acts on behalf of the seller and the seller pays the broker.

Buyers though are recommended to seek advice from professional advisors such as accountants, solicitors, insurance brokers and equipment valuers when making an acquisition.

How do I find a good business to buy?

Make contact with and trawl broker’s web sites

Look on businesses-for-sale web portals like   http://australia.businessesforsale.com/

Are there any rules of thumb for valuing a business?

NO! Rules of thumb rarely survive a brush with reality.

Rules of thumb assume a homogeneity across businesses that just doesn’t exist.

I’m sceptical about why a business is for sale or what I’ve been told about a business.  What should I do?

Firstly recognise you’re not alone and most business buyers (and their advisors) are a sceptical lot.  That’s OK as long as it doesn’t paralyse you from buying anything because buying a business is risky.

As a business buyer you can mitigate that risk by:

• Voicing your concerns – these things can often be easily resolved if the right people know there’s a problem
• Engaging experienced and professional advisors
• Asking a lot more questions – that might entail additional meetings and visits (just be careful about your confidentiality obligations though)
• Ensure the Due Diligence process is thorough
• Introducing conditions like earn-outs and claw-backs

What is Due Diligence?  It sounds painful

The agony of not getting it right is worse!!

Buyer Due Diligence is a process of reviewing all the available information surrounding a business about to be acquired (or sold – a seller due diligence is a good insurance policy) and ensuring all is as it appears.

A Due Diligence is one of the critical conditions in a business sale transaction.

Financial and non-financial data is reviewed by the buyer and advisors (Trio, Accountants, Lawyers, and Surveyors etc) to ensure that the information gathered supports the buyer’s view of the price and conditions under which the business will be purchased.

Trio’s experience in business acquisitions and disposals means that we know the issues to look out for and the warning signs when things aren’t stacking up.

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For Business Sellers

What does it cost to sell a business

Trio’s pricing is consistent with the prevailing market and generally based on a % of the total consideration paid for the business (including the equipment and stock).

We are very clear on our policy on advertising – advertising for the sake of it doesn’t sell businesses.

Online promotion of our client’s businesses for sale is now the most effective and where most of our efforts go.  We generally do not pass on the costs of the online promotion.

How would you go about selling our business?

The first thing we would do would be to talk to you about your business to see if it is the type of business we feel we could sell – we won’t make you promises we can’t keep.

As Trio’s principals are Chartered Accountants we’re well qualified to review the financial results of the business and assess any adjustments that might need to be made for non-core or personal expenses.

It’s just not about the numbers though – a detailed Business and Industry Profile is then compiled on the business.  This document is thorough and covers issues such as:

• The history of the business
• The market the business serves
• Products and services
• Competitive environment
• Future opportunities
• Supplier relationships
• Staff
• Physical assets and premises

The sources of potential buyers are canvassed and the business appropriately promoted.  Advertising for the sake of it doesn’t sell businesses.

Confidentiality is a critical issue for most of our seller clients and everything possible is done to address those concerns.

Are there any rules of thumb for valuing a business?

NO! Rules of thumb rarely survive a brush with reality.

Rules of thumb assume a homogeneity across businesses that just doesn’t exist

Where do you find buyers?

Predominantly two places – the net and our database.

Trio maintains contact with people and organisations we know are looking for businesses.  Other prospective buyers are searching the net and we use this site and other portals to attract them.

We discuss with our seller clients any direct approaches they are happy for us to make.

How do you value a business?

That depends on who the valuation is for and for what purpose.

For our business seller clients the asking price is discussed after thorough consideration of all the selling features, the financial results and the prevailing market conditons.

Refer above for other business valuation questions.

More on business valuations


I really don’t know if my business is saleable or how much I could get for it.  How do I find out?

Contact us to see if  Trio can help.  If not we’ll try and point you in the right direction.

Give Trio a call or send us an email.  We should be able to give you a few pointers on the phone or via email.  That may lead to us meeting up for a no-obligation, low pressure chat about the business.  We have nothing to gain by painting an unrealistically optimistic picture (that would waste our time as well as yours) so we’ll tell it like we think it is.

How much you could achieve in selling the business is a function of a number of factors, including of course the financial results.  There’s quite a bit involved in analysing the financial statements so that aspect we can’t do on the fly.  We could though talk with you about the various factors involved.

• If, in our opinion, there’s no hope we’ll tell you.
• If there’s a pulse we’ll talk with you about recovering the situation
• If it’s an average performer there are likely two options – sell now OR really commit to firing the business up and selling in a couple of years when there’s more substance to the business to sell.
• If it’s a stand out business it still won’t be quick or easy to sell (none are!) but you can expect a premium price and an easier ride.

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