thinking about selling my cafe in brisbane next year. it's been running for 11 years and i'm just over it. where do i even start? do i need a broker or can i diy it? also worried about staff finding out and leaving. any advice appreciated.
Business Exit
how to sell a business in australia
Broker fees can be steep (5-10% for smaller businesses) but they handle the vetting and marketing. For a cafe, you're competing with plenty of others so presentation matters. Get your P&Ls and tax returns in order first.
Do you own the freehold or lease? That changes everything. If it's lease, check the terms and landlord consent clauses before you list.
Most brokers will want at least 3 years of clean financials. If your books are messy, spend the next 12 months cleaning them up. Also, don't tell staff until you have a signed contract. Word travels fast in hospitality.
I sold my landscaping business last year. Used a broker and it was worth it for the confidentiality alone. He handled all the tyre-kickers. But you need to be ready to answer a lot of questions and provide documentation.
what's your rough turnover and profit? that determines whether a broker will even take you on. some won't touch small businesses under a certain threshold.
Get a business valuation first. You can pay an accountant or a specialist. Don't just guess based on what you'd like to get. The market for cafes in Brisbane is soft right now, so be realistic.
If you DIY, you'll need a solid information memorandum, an NDA for buyers, and a plan for due diligence. It's a lot of work on top of running the cafe. Most sellers underestimate the time involved.
Also think about vendor finance. Offering terms can broaden your buyer pool, especially for a cafe where banks might be tight on lending. But it carries risk, so get legal advice.
Staff finding out is a real risk. You can put a confidentiality clause in the sale contract, but in practice, once you list with a broker, it's hard to keep it quiet. Maybe plan to tell key staff once you have a serious buyer.
Don't forget about GST, and CGT implications. Talk to your accountant before you sign anything. The tax bill can be a shock if you haven't planned for it.
what's the lease situation? if you've got less than 3 years left, buyers will be nervous. Maybe negotiate an extension before you sell.
One more thing: get a lawyer who specialises in business sales, not just a general conveyancer. The standard contract for business sles is different from property.
I'd start by talking to two or three brokers for a free appraisal. That'll give you a ballpark and an idea of what they'd do. No obligation.
Thanks for the responses. Lease has 5 years left with a 5-year option. Turnover is around 850k, profit about 120k. Sounds like I should get the books sorted and maybe talk to a broker. Appreciate the tips on confidentiality and tax.