- How do I sell my business in South Africa?
To sell a business successfully, you must determine its value. Then prepare accurate financial and operational information, set a realistic asking price, and identify suitable buyers.
We help owners prepare their businesses for sale and market opportunities confidentially. We screen prospective buyers and manage negotiations until the sale completes.
If you are considering selling your business, contact us for an initial discussion.
- What is my business worth in South Africa?
The value of a business depends on several factors. These include sustainable profits, cash flow, assets, and industry.
It also depends on growth potential and reliance on the owner, as well as the customer base.
For many small and medium-sized businesses, buyers look at Seller’s Discretionary Earnings (SDE).
They assess maintainable earnings rather than turnover alone.
We value some larger businesses using EBITDA multiples, while in other circumstances we apply asset-based valuations.
Biz2Sell helps business owners understand the factors affecting their business valuation and establish a realistic asking price.
- How much can I sell my small – medium-size business for?
The selling price of an SME business depends on its proven profitability.
Income reliability and the strength of customer relationships underpin it.
Its systems, assets, and future prospects influence the price.
Two businesses with identical turnover can have very different values if their profits, risks and owner involvement differ.
The most useful starting point is to review the business’s financial performance and determine what earnings a new owner could reasonably expect to maintain.
A realistic valuation helps attract serious buyers and supports credible negotiations.
- How long does it take to sell a business?
Selling a business can take several months or longer, depending on the asking price, profitability, industry, market conditions, buyer availability and complexity of the transaction.
Finding a suitable buyer is only one stage: negotiations, due diligence, financing, and legal agreements can also take time.
A well-prepared business with a realistic asking price and organised financial records generally positions itself for a smoother sale.
There is no guaranteed timeframe, so planning is important.
- Why should I use a business broker instead of selling my business privately?
Selling privately means finding potential buyers, screening them to cut out all the timewasters, responding to enquiries, checking buyer credibility, protecting confidential information, negotiating offers and coordinating the transaction yourself.
A professional business broker helps manage these tasks, presents the opportunity to suitable buyers, facilitates negotiations, and guides the seller through the process.
Biz2Sell aims to reduce the time, uncertainty and disruption associated with selling a business privately, allowing owners to focus on running their businesses while the sale process progresses.
- Can I sell my business confidentially without my staff or customers finding out?
Yes, a business sale can often be marketed confidentially. Initial advertising can describe the opportunity without disclosing the business name or other identifying details.
Prospective buyers can be screened, and confidentiality agreements can be used before sensitive information is shared.
The seller and broker should also manage meetings, site visits, and the release of financial information carefully.
Although confidentiality cannot be guaranteed absolutely, a controlled process helps reduce unnecessary disclosure and disruption to employees, customers and suppliers.
- What documents do I need to sell my business?
Buyers will typically want to review recent annual financial statements, management accounts, tax records where relevant, sales and expense information, asset lists, leases, contracts and details of employees and operations. Depending on the business, they may also require information about stock, licences, suppliers, customers, and outstanding liabilities.
Organizing these documents before marketing begins helps establish credibility, answer buyer questions, and prepare for due diligence.
The exact requirements depend on the nature and structure of the business.
- Do I need to show a profit to sell my business?
A profitable business is easier to present to buyers seeking an established income, but not every business sale is based on profit.
A business with weak or declining earnings may still have value in its assets, equipment, stock, location, customer relationships, or other commercial advantages.
However, buyers will examine the reasons for poor performance and the investment required to improve it.
Biz2Sell focuses on helping owners assess their business realistically and determine whether a going-concern sale or another disposal strategy is more appropriate.
- What are the fees for using a business broker in South Africa?
Business broker fees and commission structures vary according to the broker, the size and complexity of the business, and the services provided.
Before signing a mandate, ask for a clear explanation of the commission, any upfront or marketing fees, applicable VAT and when payment becomes due.
Biz2Sell will explain the applicable terms and costs before proceeding with a business sale mandate.
The agreement should clearly set out the responsibilities of both parties.
- How does Biz2Sell find buyers for my business?
Finding the right buyer involves presenting the opportunity to relevant prospective purchasers, responding to enquiries and assessing whether buyers have the interest and financial capacity to proceed.
Biz2Sell uses business-for-sale marketing channels, professional networks, and buyer enquiries to help connect sellers with potential purchasers.
The marketing strategy depends on the business, its sector, location, asking price, and confidentiality requirements.
The objective is to identify credible buyers who are a suitable fit for the opportunity.
- How do you avoid timewasters when selling a business?
One of the challenges of selling a business privately is dealing with enquiries from people who may not have the funds, experience, or genuine intention to buy.
A professional screening process helps establish a prospective buyer’s acquisition criteria, relevant experience, financial capacity, and timeframe before sensitive information is released.
Confidentiality agreements and staged disclosure can provide additional safeguards.
Although no process eliminates every unsuitable enquiry, buyer qualification helps sellers spend more time engaging with serious prospects.
- Should I sell my business myself or use a business broker?
You can sell your business yourself, but you will need to manage marketing, buyer enquiries, buyer screening, confidentiality, negotiations, due diligence and coordination with professional advisers.
A business broker brings structure to the process and can help you assess the asking price, reach prospective buyers, and manage negotiations.
The right choice depends on your experience, available time, the complexity of your business and your ability to handle confidential commercial discussions.
Many owners prefer professional assistance so they can continue focusing on business performance during the sale.
- When is the best time to sell my business?
The best time to sell is often when the business has a credible record of sustainable earnings, stable operations, and clear opportunities for a new owner.
Waiting until profits decline, the owner becomes exhausted or an urgent personal circumstance arises can limit your options.
Ideally, begin preparing for an exit well before you intend to leave.
Retirement, emigration, relocation, a career change or the desire to pursue other investments can all be reasons to plan a business sale in advance.
- Can I sell my business when I retire or emigrate?
Yes. Retirement and emigration are common reasons business owners consider selling.
If you are retiring, relocating to another city, or moving overseas, an early start can give you time to prepare the financial records, assess the asking price and find a suitable buyer.
The business may also need to operate successfully without your daily involvement.
Biz2Sell helps owners explore the sale process and plan an orderly exit, subject to the business being suitable for sale and the terms agreed with the seller.
- Do I have to tell my employees that I am selling my business?
The timing and manner of communicating a proposed sale depend on the circumstances, employment arrangements, and applicable legal requirements.
Premature disclosure may cause uncertainty; however, employees will need to be informed at an appropriate stage of a transaction.
A confidential process can help limit unnecessary rumours while the owner obtains professional advice on employee communication and any consultation or transfer obligations.
A buyer will usually want to understand the workforce, key roles, and operational continuity before completing the acquisition.
- What is the difference between turnover and profit when valuing a business?
Turnover is the revenue generated by a business before expenses, while profit is what remains after relevant expenses have been deducted.
Buyers generally look beyond turnover to understand sustainable earnings, operating costs, cash flow, and the financial risks of the business.
A high-turnover business may be worth less than a smaller business with stronger, more dependable earnings.
Owner remuneration and certain genuine, supportable adjustments may also be considered when assessing earnings available to a prospective owner.
From a buyer’s point of view – “Turnover is vanity, profits and cash flow is sanity.”
- What is due diligence when selling a business?
Due diligence is always a suspensive condition in the Offer to purchase agreement. It is basically the investigation a buyer conducts before committing to a business purchase.
The primary purpose is to prove the advertised turnovers, stated net profits and Sellers Discretionary Cash Flow.
It may also tax clearance, contracts, leases, employees, assets, customer concentration, and legal or regulatory matters.
The purpose is to verify the information provided and identify risks that could affect the transaction.
Sellers who prepare accurate, well-organised records in advance can help make the process more efficient and reduce avoidable delays.
- Can I sell a business that operates from leased premises?
Yes, businesses operating from leased premises can be sold. However, the lease terms, remaining duration, rental costs, renewal options and any landlord consent requirements may affect the transaction.
A prospective buyer will want to understand whether the business can continue operating from the premises after the sale.
The transfer or replacement of a lease depends on the lease agreement, the parties involved and applicable legal requirements.
These matters should be identified early in the sale process.
- What types of businesses does Biz2Sell Business Brokers sell?
eXp Biz2Sell Business Brokers focuses on the sale of profitable small and medium-sized businesses and franchises.
Depending on suitability, this can include retail businesses, service businesses, manufacturing and distribution companies, restaurants, coffee shops, hair and beauty businesses, wellness businesses, transport operators, pre-schools and selected hospitality or property-related businesses like AIRBNB’s, B&B’s, Guest lodges and Boutique hotels.
Each opportunity is assessed individually, with consideration given to profitability, financial records, asking price and marketability.
We work with owners to determine whether their businesses are suitable for our sales process.
- Which areas does Biz2Sell serve, and how do I get started?
eXp Biz2Sell Business Brokers assists business owners primarily in Gauteng, but we also assist sellers of suitable businesses nationally.
If you are considering selling your business, the first step is an initial, confidential discussion about your business, financial performance, reason for selling and expected asking price.
We can then discuss the potential sale process and the information needed to assess the opportunity.
Contact Greig Fitzell to arrange a no-obligation conversation.