5 Tips For Setting Up Your Business For a Profitable Sale

When it comes to selling a business, timing and preparation are everything. Preparing well before the business hits the market can uncover hidden value and attract the right buyer at the right price.

On the Sunshine Coast, where lifestyle motivated buyers and people locating from interstate drive demand, businesses that are well presented, systemised and backed by transparent financials often close with more profitable results.

There are many reasons business owners choose to sell. It may be a lifestyle shift, a decision to relocate or retire, a move into a different industry or simply an opportunity to release capital. While not all owners have time up their sleeves to conduct the ideal preparation, sellers who prepare are in the strongest position to achieve a lucrative and low-stress exit.

RWC Noosa & Sunshine Coast Commercial Property & Business Consultant John Petralia specialises in business sales, combining decades of financial and commercial experience to help owners prepare their business for the best possible exit.

“Start early, tidy up your financials and get the business running smoothly without you,” John says. “Make it as turnkey as possible. That’s what sells. Buyers also look for stable staff, potential for growth and help with the transition.”

1. PREPARING FINANCIALS: CLEAN NUMBERS AND CLEAR VALUE

One essential element of a successful business sale is having clear, accurate and verifiable financials. Buyers make decisions based on risk and return so inconsistent or incomplete accounts can raise red flags.

While many business owners legitimately reduce taxable income through deductions and personal expenses, such as vehicles or phones, these practices can diminish the value of the business when it comes time to sell.

“To get the best outcome, financial records need to reflect the real, operational profitability of the business. This means identifying and documenting any ‘add-backs’ — discretionary or non-essential expenses that a new owner wouldn’t carry forward,” explains John.

Sellers should start preparing financials well in advance, ideally at least 12 months from listing to allow clearer reporting in tax returns and other documentation.

Key documentation to prepare:

• At least three years of tax returns and BAS statements
• Profit and loss reports, with commentary from your accountant to explain any anomalies
• Point of sale data and monthly cash flow records (these are particularly useful for seasonal businesses)
• Ensure any relevant licences, such as liquor or music, are current and ready to transfer.

“Business owners often overlook financial transparency,” says John. “Deals can fall over during due diligence because something wasn’t disclosed upfront. Buyers lose trust quickly if the numbers change. Strong financial preparation and detailed financial documentation sends a message that the business is well-managed, profitable and ready for transition.” 

2. DEMONSTRATE THAT YOUR BUSINESS CAN RUN WITHOUT YOU

Owners preparing for sale should begin to step back from day-to-day involvement well in advance. This includes documenting operational processes, assigning responsibilities across the team and ensuring staff are empowered to make decisions and manage operations.

John says a business that relies less on its owner is inherently more valuable: “Buyers want confidence that they can step in without needing to overhaul systems or manage every aspect of daily operations. The more autonomous the business, the more appealing the opportunity.”

Ensuring key staff are likely to remain through the transition can also reduce buyer hesitation.

Processes to document:

• Daily operations: workflows, ordering, inventory management
• Financial processes: sales, invoicing and bookkeeping
• Staff: roles and responsibilities, training procedures, KPIs
• Customer and suppliers: contacts and terms
• Lease and premises: lease terms, maintenance schedules
• Sales and marketing: customer database, segmentation, campaign processes etc.
• Compliance and legal: licences, WHS procedures, insurance policies
• Technology and systems: POS, website management, website and other logins, ordering systems, backup and security processes
• Brand assets and intellectual property.

3. LOCK IN VALUE WITH LEASES AND FITOUTS

Lease arrangements and presentation can be a dealmaker or a dealbreaker for any business operating from a physical location.

“If someone is planning to invest serious money in a business, they want to know they’ve got security in the site. You don’t want a great business tied to a short lease,” John says.

He advises business owners to speak with their landlords early to add additional lease options or extend existing terms ahead of going to market. This provides reassurance to buyers and increases perceived stability. John and the team at RWC Noosa & Sunshine Coast team can work with buyers to prepare a presentation to landlords to secure lease options.

The presentation of the premises also matters. “It’s like selling a house,” John explains. The prospective owner will start mentally budgeting for repairs if the space looks tired or run down. The cleaner and more move-in-ready it looks, the better.”

Businesses in prime locations can leverage the location’s strength and desirability by advertising a ready-to-trade commercial property for sale with a fitout in place.

“If the location holds immense value, sellers can capitalise on the worth of their business, even when its success lies in the site rather than the operation,” John said. “This approach can effectively secure buyers who may not be looking for an existing business to purchase but are seeking the right property in a sought-after location.”

4. VALUING INTANGIBLE ASSETS LIKE BRAND OR GOODWILL

While elements of a business like brand reputation, customer loyalty and intellectual property  can be hard to quantify, these can effectively influence buyer interest.

“It’s hard to put a dollar figure on intangibles and ultimately it comes down to what the market’s willing to pay,” says John. “If a business has strong intellectual property or a recognisable brand, that can increase the appeal, although the value is only realised when the right buyer comes along.”

“While you won’t always see these factors reflected directly in valuation, they often influence how many buyers are willing to engage and how motivated they are to negotiate.”

5. KNOW WHAT’S HAPPENING IN THE LOCAL MARKET

Understanding buyer behaviour and the state of the market is essential for positioning your business effectively. 

According to John, lifestyle continues to be a key driver on the Sunshine Coast: “Lifestyle-friendly businesses are hot. People move here for a better work-life balance, so they’re not looking for something that will tie them down.”

“We’re seeing strong enquiry from people looking to relocate, particularly from Victoria, who are planning ahead and searching for businesses that offer both financial return and flexibility,” says John.

Knowing what’s currently in demand and how your business fits within that landscape is crucial. Partnering with a local agent who knows the buyer pool and how to position a business to meet their expectations can make a difference in terms of meeting the market. 

WHAT BUYERS ARE LOOKING FOR RIGHT NOW

Buyers in today’s market are typically looking for:

• Strong, consistent profit
• Low reliance on the current owner
• Clean financials and clear handover
• Systems, staff and procedures in place
• Quality premises with secure lease terms
• Lifestyle and flexibility
• Potential to grow

Where available, offering the freehold alongside the business opens the door to a broader buyer pool. Owner-occupiers are often willing to pay a premium for the long-term certainty and control that comes with owning the site.

“In some cases, a buyer will pay well over investor value to secure both the business and the premises,” says John. “It’s about locking in the future of their investment.”

PLAN EARLY, PRESENT CLEARLY AND ENGAGE EXPERT SUPPORT

Whether you’re planning an exit soon or thinking ahead, the RWC Noosa & Sunshine Coast team can guide you through each step, from lease reviews and pricing strategy to buyer engagement and negotiation.

“Starting the conversation early can make a big difference. It gives you time to get the business in shape and make sure your numbers are clear and well-presented. It also helps to engage early with an expert as we can help guide you through the preparation phase before your business does on the market,” John said.

Backed by RWC’s national reach and extensive buyer database, Ray White Commercial Noosa & Sunshine Coast can connect with a wider pool of potential purchasers who are often overlooked by traditional ‘business for sale’ websites.

Our marketing approach also taps into alternative and industry-specific sites, targeting the spaces where serious buyers are already reading and engaging.

Call John Petralia on 0414 812 719 for an obligation-free discussion about your business or commercial property.

Offices in NOOSA | CALOUNDRA | MAROOCHYDORE

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