02 Jun 6 Practical Tips for Buying and Selling a Business Successfully

Whether you’re planning to sell your business or looking to buy one, preparation and understanding are key. Below are three essential tips for sellers to help you achieve the best price, followed by three crucial tips for buyers to reduce risk and make informed decisions.

Selling a Business: 3 Key Tips for Success

1. Maximise Turnover on Paper

Some business owners still operate partly in cash to reduce taxes. While this might have saved a little in the past, it no longer works in your favour when selling. Buyers—and their accountants—rely heavily on official financial statements. The more income and profit your business shows on paper, the higher the valuation.

To attract serious buyers and command the best price, ensure your income is fully reported, and your books are clean and transparent. Presenting strong, consistent turnover is one of the most powerful ways to demonstrate value.

2. Don’t Minimise Taxes at the Expense of Sale Value

Trying to save on taxes by underreporting income or inflating personal/business expenses may backfire when it’s time to sell. Buyers won’t pay extra for “cash earnings” that don’t show on official statements, nor will banks finance a business based on verbal claims.

That said, legitimate business-related expenses—such as owner wages, super contributions, and vehicle purchases—can often be added back when assessing business value. This is why it’s smart to work with a qualified accountant or business advisor early on to structure your finances in a way that supports a strong future sale.

3. Secure a Long-Term Lease

A secure, long-term lease is a crucial asset. Even the most profitable business can struggle to sell if the lease is expiring soon or has uncertain terms. Buyers want confidence that they’ll be able to operate the business in the same location without disruption.

Before listing your business, ensure the lease has sufficient time remaining or consider negotiating a renewal. Don’t hesitate to renegotiate with your landlord—or even relocate—if that’s what it takes to secure a tenancy that adds value to your business.

Buying a Business: 3 Tips to Protect Yourself

1. Check Visa Eligibility Before You Begin

If you’re on a visa, make sure it allows you to buy and operate a business before you begin searching. The process of buying a business can take 4–6 months, and starting without clarity on visa limitations can waste time and money.

For example, student visa holders are typically not permitted to own businesses. Certain business visas have specific requirements, and government-related businesses (such as post offices) may only be sold to Australian citizens. Always consult a registered migration agent before proceeding.

2. Avoid Private Deals—Minimise Risk

Private sales might look like bargains, but they come with significant legal risks. Unlike broker-listed businesses, private deals haven’t undergone any preliminary due diligence. You may end up with incomplete information, misleading claims, or hidden liabilities.

Licensed business brokers, on the other hand, screen businesses before listing them. They act as a layer of protection for both parties. In many proven cases, buyers who thought they got a “deal” in a private sale later discovered they’d bought a business that brokers had already rejected.

3. Understand the Full Investment Required

Many buyers either underestimate the total capital needed or overestimate their borrowing capacity. To avoid this, consult a mortgage broker or bank before committing to a purchase. They’ll help you assess what kind of business you can afford, factoring in not just the purchase price but also working capital, upfront costs, and initial cash flow needs.

Financial professionals can often offer free advice to assess the business’s repayment potential and overall value. And remember—if the bank doesn’t believe the business can repay a loan, that’s a red flag worth paying attention to.

Final Thought

Whether you’re buying or selling, success depends on planning, transparency, and seeking the right advice. With the right strategies in place, you can not only protect yourself but also unlock the full potential of the deal.