Selling a 1 person consultancy business..Help please!

[PLANT]

Hi there,

Have a 1 person consultancy business that I am looking for information on selling.
It has over 100+ return business clients.
Covers two states in Australia.

Anyone with any experience in this area please assist.
Tips, positive and negative experiences.

The money can be spent on funding more overseas trips

 

[PLANT]

Anyone out there?

 

[serfty]

Not sure there's that much experience on what you are after around these parts ...

 

[Pushka]

It's going to be a little difficult if those return clients are based on you and not the service that's offered. Do you have an accountant who has contacts in business ventures?

 

[knightman7]

What industry?

 

[Paddy55]

Any assets... beside yourself?

 

[PLANT]

Well they get the name, client list
Should they get the files, documentation on each facility?
How much intellectual property are they entitled too?
No buildings, stock, machines or cars......

 

[MelUser]

The more you give them the more you can expect for your business.

In the business sales I have been involved with you generally sell and receive as buyer everything that is in and is needed to run the business - this would include all the things you have listed above and more.

Note that this may be limited by any confidentiality agreements (express or implied) between you and your client - the upshot of this is that you may need to get your clients' consents.

 

[lovetravellingoz]

Well they get the name, client list
.....

That would get you very little for a one man business.

If you do not sell enough that they can just walk in and keep the $$ flowing in, you would get zero or very little..

Buying a sole -operator consultancy would be very risky.

 

[PLANT]

Client base that is valuable as well as the documentation

 

[medhead]

Client base that is valuable as well as the documentation

The question that seems to jump out at me is how do they know they'll keep that client base? Non compete agreement?

 

[Paddy55]

Well they get the name, client list
Should they get the files, documentation on each facility?
How much intellectual property are they entitled too?
No buildings, stock, machines or cars......

The more they get the more value... in fact without ALL the IP it's not really a business being sold, is it?

 

[Pushka]

Or Equipment. Without that or IP all you are offering is a client list which s based on the IP you used but are not including in the deal.

 

[albatross710]

Is the business something that can be operated by another person? can you take an intelligent person and teach them how to run the business? A wide pool of people out there think that being in business for themselves has benefits and want to see returns on day 1.

If the consultancy needs some specialist skills that is also good. Many specialists may not have the sales skills or the patience or the time to build up a client list of 100 active clients. So they are prepared to pay for the time it takes to get up to the level of billing hours you are doing.

Trade sale might also be worth considering. Is it a consultancy that can be sold into a larger consulting business? A partner may be willing to pay for the additional billable work.

A business broker whom you can identify as being active in your industry might be a suitable contact. Doesn't cost anything to have an initial chat with a couple of them.

Any of your IP, client lists etc keep in your control, no preview by prospects. I made a mistake with selling a biz a few years ago where I left the broker in charge of the commercial info. He did dutifully get people to sign the Confidentiality Agreements but I never got to know whom was viewing the figures. In the end the prospective buyers felt I was too critical to the business. Something you would have to work out how to address in a one man consultancy.

Good luck and happy travels.

Alby

 

[Simo]

Maybe your business could be purchased by a competitor in your industry.

Sole operator business could be hard to sell as you could have some huge friendships with some clients.

 

[PLANT]

Others are interested but don't want them to take the name as their work not up to scratch.
Appreciate the info so far.
Any business brokers worth considering?

 

[Paddy55]

Others are interested but don't want them to take the name as their work not up to scratch.

You can't afford that much sentimentality IMHO

 

[Pushka]

Have to agree with that.

 

[whatmeworry]

Hi there,

Have a 1 person consultancy business that I am looking for information on selling.
It has over 100+ return business clients.
Covers two states in Australia.

Anyone with any experience in this area please assist.
Tips, positive and negative experiences.

The money can be spent on funding more overseas trips

My boss is in the middle of currently selling his business and engaged a broker to try to sell his business. Anyway a buyer is interested but not via the broker.

 

[dfcatch]

I would have to say that I would think you would struggle.

The only value in any 1-man consultancy is the individual themselves.

Unless you come with the deal, or there are tangible assets coming with the deal - the only attraction is the opportunity to buy you out and turn the light off.

Attractive to a competitor perhaps.