Sam Penny (00:00)
Welcome back to Built to Sell, Built to Buy, the show where we take you behind the scenes of buying and selling businesses, what works, what doesn't, and how to make your next deal a winning one. I'm Sam Penny. And today we're diving into the mind of someone who's walked in the shoes of both sellers and buyers. Sherryn Deetlefs has built and run her own businesses from hospitality to health to design. And earlier this year, she made the leap into the world of business broking with Link.
not just crunching the numbers, she understands the heartbeat of a business, the emotions in a deal and the practical steps that make an exit or acquisition successful. So whether you're a business owner preparing to sell or you're a buyer looking for your next opportunity, you're about to get some powerful insights from someone who's been on both sides of the table.
Sherryn Deetlefs welcome to Built to Sell, Built to Buy.
Sherryn Deetlefs (00:56)
my goodness, Sam, thank you so much. What a lovely introduction.
Sam Penny (00:59)
⁓ quite all
right. Now, before we talk brokerage and brokerage strategies, I want to rewind a little bit. You've worn a lot of hats in business. So let's start at the beginning. What was your very first business and how did that come about?
Sherryn Deetlefs (01:13)
⁓ gosh, I think like lots of entrepreneurs, I probably had just that intuitive aptitude that's in my DNA because to be honest, even when I was a teenager and my neighbor asked me to teach her kids to swim, I recall putting a business plan together. So, which is, probably just that extra step, but, and becoming an adult after I got a degree in sports management. And, when you work in sport, you realize that you wear lots and lots of hats.
One week you're doing payroll and the next week you're doing uniforms for the team and then you're working with board members and events on weekends. So we traveled the world after I did that for a couple of years. And so when it came to having two little girls, I thought, oh, let's start a business because I'm, mean, I love business, but what I wanted was flexibility. and to be able to have autonomy over my time. So my husband and I bought
business on the Gold Coast. It was called Dining Out. It's a restaurant and entertainment guide. So there were two publications, Gold Coast based and Brisbane based. So it was before the world had gone digital like it has now. And it was a guide that we printed and put in the foyers of hotels and lots of distribution points. So it really suited our skill set. that's how we got going.
There was a day where I did look in the window and I saw my husband laying on the ground with his hands over his eyes just going, and I said, what's going on? And he just said, I just don't know if I want to do this anymore. I think that was the first point that I was like, ⁓ okay, let's solve this problem. So, I mean, I was pretty happy in the business in terms of my role, but given that Ray wasn't, I thought, I have to do something about this. So I just, I said to him,
Sam Penny (02:39)
You
Sherryn Deetlefs (03:01)
we'll just split it in half and we'll sell Brisbane because that was his big pain point driving to Brisbane and people wouldn't show up always for appointments and that type of thing. So yeah, I just went about splitting it in half and we sold Brisbane and then actually the buyers for Brisbane, it's kind of a funny story, the day that we settled. You you always wonder up to settlement how that's going to go.
The buyers showed up and they had signage plastered across their whole car. Their whole car had been wrapped with the branding of the business that they hadn't quite settled on. So I guess that was a really interesting experience. Yes, we sold Brisbane, got settled and then eventually sold the Gold Coast. And I think that was actually a pretty good move financially as well.
Sam Penny (03:47)
So you've run ventures in several different industries. Was there a recurring theme that went across all of them?
Sherryn Deetlefs (03:51)
Yeah.
I'm very customer focused. And I think that, if you can understand the needs of your customer, then you can solve their problems. And then you become, there's many reasons why then they'll just keep coming back to you. You're listening to them. And if you are listening to them, you're developing products and services that really solve the problem very, very specifically. And if you can do that in a really well-oiled way, yeah, always it creates for growth.
I think you're always going get growth.
Sam Penny (04:27)
So you mentioned, and you must see this a lot as a business broker that founder burnout where they just lose the energy or the passion for the business and mentioning your husband lying on the ground, hands over his eyes just going, I can't do this any longer. How often do you see that when businesses approach you to sell?
Sherryn Deetlefs (04:50)
there's always a reason why people sell. And almost like one of the first things that I will ask a potential vendor is what is the reason for selling? And unless it's bankruptcy or something, pretty dramatic like that, there's no wrong answer. But it is almost like the first question that a potential buyer will ask. And they just want to know what the story is. So whether you have to sell because you've got debts that you and you need some equity out of your business or whether you
need to sell because your husband's laying on the ground with his hands over his eyes. Or it's just like the right time. there's always a reason and understanding those motivations can help you figure out the way what your exit strategy is as well. So I had another business that for a longer period of time than dining out, it was called Jamberry. It's still around today. And that was a textile business that I had for 15 years.
So how that came about was as the publication business was kind of wrapping up and I had two little girls, my husband was going back into the corporate world. So I enrolled my daughter into the local early learning center and they gave me a piece of paper with some dimensions on it and said, you've got to sew these sheets for the kids rest time. And I thought, that seems quite ridiculous. Can we not buy something? But I am very compliant and wanted the best for her and her experience.
whip out the sewing machine and off I go. And consequently, I could identify an opportunity there. And so 15 years later, I was the largest textiles supplier into early learning centers in Australia. We just did it really well. We started right from the ground up, really good quality fabrics, printed out own designs. So there was a lot of product IP and yeah, supply chains from China and Indonesia and all the big groups as well as the really small group.
small operators that really valued meeting their accreditation requirements ⁓ used us, which was great. But I even though that was a fantastic business and it's great business and my phone still occasionally rings years later. You get to a point sometimes where you just think, ⁓ you know, like, I had like quote fatigue. It was like, I could have to do another quote for kind of the same product range, then it just
Yeah, it's sort of like I needed a change. It was time for a new adventure. And so there's all sorts of reasons why people want to take an exit out of their business. sometimes it's just that you've been jumping hurdles for so long and, you new government in power and, you know, policy is changing and, and that means something else for you to face because that's pretty much being an entrepreneur is just fighting fires and trying to find the growth at the same time.
Sam Penny (07:29)
I've had 25 years of being an entrepreneur and there's certainly so many highs, but probably twice as many lows. It is really tough. Now you've had such a rich history of being an entrepreneur, Was there a particular moment or a realization when you thought, I could help people sell or buy businesses the right way?
Sherryn Deetlefs (07:34)
Yeah.
Yes!
definitely. I mean, think presentation is probably just a natural inclination for me. So just to be able, maybe it comes from a combination of customer service and publishing background, but I like presenting information in really beautiful ways and telling a story because we all have a reason why we're our businesses is what it is. And so when I sold Jamberry, I did a great job of that and
Quite a lot of people ask me, did you even do that? And it just felt really easy for me to do that. So I kind of love the combination of people and then the financials and interpreting your financials and what does that mean and what industry you're in and those kinds of factors. And then your unique value that you've created. And I'm going to say nearly every person that comes to me says, my business is a one of a kind. It is so unique compared to every other business in our space.
But I kind of realized if you don't have that something unique about your business, then it could be challenging to sell, to be honest. So that's part of the flavor of it. It's your unique value proposition that makes it interesting and attractive for somebody to buy.
Sam Penny (09:05)
So you've got some great experiences here of being both a buyer and a seller. How has that shaped your view of what a good broker does?
Sherryn Deetlefs (09:16)
gosh, well if you think back to the publication business that we bought, that was actually facilitated by a business broker. And to be honest, this was the handover. We met with the sellers, the vendors, and we were given two piles of grubby business cards with like those red elastic bands around them, and a box of dog-eared publications that had previously been printed. And it was like, that was the sum of the
the product, the systems, the supply chain, I think there might've been a rough Excel spreadsheet of our customers and that was it. And so, for me, really like, if I use that example, just as one little example, if a business is, we'll get through to settlement, I work really closely with the vendors on preparing their business to hand over. So it's not even just about preparing it to get through due diligence and all of those things that everybody thinks about.
It's making sure that the handover is great because we want that person to flourish. We want that legacy to carry on so often. I obviously work with a lot of people that have built up brands or they work in healthcare, education, particularly those industries. People are in it because they love other people, they love their teams and they want to carry on that legacy. So the best way to do it is just to really...
of handhold when it comes to handing things over in a much more eloquent way than we experienced way back when.
Sam Penny (10:41)
Ha
So you've seen
business sales from both sides now. So I want to talk about your focus when you're representing a seller. When you first meet a business, what's the first thing you look for?
Sherryn Deetlefs (10:57)
So obviously the first thing I want to do is know what's their story, how did they get into this? So because that often shapes how they came up with their vision, the whole trajectory, whether they've been in business for a year and a half or whether they've been in business for 30 years. And I've had both of those experiences recently. And once you can understand their thinking and get inside of what their goals and motivations were at the start.
that helps to identify, it sometimes even helps us identify a buyer profile because sometimes a buyer may well be a version of the current vendor. So to understand that, another key thing is they might have a really clear vision of what they want to see for the brand, even though they're exiting and exchanging it for money. At the end of the day, they have to approve who the...
the buyer is going to be. And I recently had a business that we've had five offers so far and they've been great offers. However, the vendor just said, these people are not the right fit for my team. And they care so much about their team and the brand that they've built that they're willing to wait. So I've just said, as long as you keep giving me time, I will bring that perfect person to you that has the right synergies for your brand.
Sam Penny (12:17)
So then how do you help sellers see their business from the perspective of the buyer?
Sherryn Deetlefs (12:24)
⁓ Yeah, so we have a of conversations along the way about when it might come to pricing and valuations and the capacity for lenders. I always keep putting the, well, the first question you can sometimes ask is like, well, would you pay that for your business? And would you expect that? Like if you think about handover documents and due diligence, if you were the buyer. So I do try to put them in the buyer's shoes to see the lens for which they're looking at.
the business because everybody has their own unique set of experiences and qualifications and motivations as well. some often I might deal with, some capital, some VC firms that they come in strong with. want to an ROI of this and, they want, margins of that. And it's all very metric driven, right up to just somebody who's like, I'm just looking for something that's just going to work. And I don't know what I'm looking for, but I know when I'll see it. So it's trying to
Ultimately, you're trying to find the common ground between the vendors and the buyer.
Sam Penny (13:26)
you mentioned the valuation of the business and trying to get a realistic valuation of the business, you've mentioned already quite a few times branding, operating procedures, your SOPs, all those kinds of things, which can really make or break a sale. Have you seen several times where having all these parts that affect the multiple in a valuation, like the branding, like IP, like the database?
SOPs where they've added real huge value to the deal.
Sherryn Deetlefs (13:58)
⁓ yes, like right now we're talking with somebody that this person's a clinician and they're looking at buying something in the wellness space. so like what's a, you look at them, well, even as a, this is a fully managed business and they're going to be a clinician that can, has a, ⁓ they've got ⁓ some synergies with their client base. So one of the huge attractors for her is who are your clients? Because they are going to be my clients as well. So.
So it's just really, like I said, finding that common ground and because the numbers might dictate the valuation and the price point and that type of thing. And that really does help when people go and get financed for businesses, but it's those other qualities, the IP and the branding and the pool and the customers and supply chain and all those SOPs, they're the things that really make people decide yes or no. This is a pick for me.
Sam Penny (14:50)
And I guess if we look at the multiples like the branding, the IP, the database, recurring revenue, all those kinds of things, the multiple is very much a reflection of the confidence that a buyer has in the ongoing future of that business.
Sherryn Deetlefs (15:07)
Oh, absolutely. actually that's one of the first things that I actually say is that to a vendor, you have to remember what they're buying is if they do everything that you have done exactly the same, then they're going to get the same revenue that you have achieved. Effectively, that's what they're buying. and at the end of the day, that's what most buyers are looking for. And that's what most lenders are looking for too.
Sam Penny (15:32)
Yeah,
exactly. They're looking for confidence and the profit and loss is all in the past. The multiples and things like the SOPs, recurring revenue, all those kinds of things are the future of the business. Now, what are some of the common mistakes owners make when they decide to sell?
Sherryn Deetlefs (15:54)
they don't think about it in advance enough. So I've recently had a business that had been around for a long time, like decades and decades. And obviously their accountant has done a very good job of minimizing their tax. And so there's a lot of like tax savings allocations in their financials, but that has, that did make it particularly challenging when it came to the first couple of offers that they got. Just the, the buyers just had trouble with lenders because
everything was to normalize the financials, a lot of it was came to sort of that ad backs and not so much the profit that was really clearly evident. So ultimately for that business, was somebody who had a big history. We found a buyer that had a history in that space. had already really good credit rating when it came to and evidence of like the capacity to grow something in the same space. And that was the right buyer for the business that
Sam Penny (16:31)
Mm.
Sherryn Deetlefs (16:50)
meant that they could get lending that others couldn't even though they had wanted it.
Sam Penny (16:55)
So then Sherryn, how much of selling a business is about the numbers as opposed to telling the right story?
Sherryn Deetlefs (17:02)
Well, I think you've got to start with, you've got to be a little bit realistic. So, because, when we appraise your market appraisal, so what we're doing is we're saying your business is worth this amount because that's what the industry is doing at the moment. Because you've got to remember that over a decade, industries are going to change. Like hospitality a decade ago had different multiples than it does today. And there's all sorts of factors that contribute to that.
might be like economic indicators that are just across the board influencing like in hospitality, the price of groceries is going up in food. So that's going to impact how their margins and things like that, or it might be your workforce. So you've got your multiples and you've to be realistic about your price to start with. And so if you can work with your accountant ahead of time to start influencing and start
putting your personal expenses outside of your business and it makes it a lot easier. We can definitely work with accountants to say, please, can you, put some numbers together because at the end of the day, buyer is going to give the financials to their accountant and say, please do a risk assessment on this. And of course their job, if you ask someone to do a risk assessment, they're going to raise all the red flags they can find. And an accountant will always appreciate another accountant's perspective versus
a broker's perspective. yeah, but our job is really just to facilitate across all the professionals at work with in the in the space to to really make your business shiny. That's what I think.
Sam Penny (18:37)
So in
your own deals, what's been the most surprising factor that's influenced the final sale price?
Sherryn Deetlefs (18:43)
well, I think it's deal structuring as well. when you lending can be a big interesting component of deals, deal structuring. So if you understand how people go and get lending, they'll get a work with somebody that will give a pre approval. And this person generally has has visions of what is possible for you. But then when it goes to credit, that's a whole different team and comes to lending.
So sometimes they have to come back and we've to do a bit of deal structuring. So recently I did a deal that had included a freehold. So you've got a business and you had a freehold and it would have been lovely to sell it all in one go. That wasn't really possible because the financials weren't strong enough to support repayments. So what we came up with at the end of the day was that the business is going to get sold now. A lease agreement got put in place. We negotiated a higher price for the freehold.
And it's already unconditional, but there is a contract in place for the freehold in just over a year's time. The buyer has a plan A, B and C in terms of lenders. So he knows that that is possible, but it does give him a little bit of runway to get some growth and get access to a better interest rate in the long run. So I think if you've got a broker that, like I worked really hard at networking with lenders and people in that space to just be able to match.
buyers with the right lender and have the right conversations so that we could just keep the momentum going in any of the deals that are in play rather than starting again.
Sam Penny (20:13)
So,
yeah, so obviously you're guiding people on both sides of the fence, the buyers and the sellers. Let's flip that perspective and talk about more of the buyers. When a buyer comes to you, what's the process that you take a buyer through to find what is truly the right fit for them?
Sherryn Deetlefs (20:33)
Right. I mean, obviously I work with Link we have a CRM that helps us navigate our buyers. But what will happen is that they have to sign a confidentiality agreement prior to getting any specific information. So when we advertise a business or if we do a targeted outreach, it will always be confidential and talk broadly about an industry and a business.
and the value in the business without identifying that business because that is a concern for all vendors. And then people will create an expression of interest, they sign a confidentiality agreement, and then I phone them. And you can uncover really quickly by just having a genuine conversation with someone to say, hey, you're interested in the physio clinic, tell me more about that, what's your background? And if they're genuinely interested, they will tell you. And whether they're
like I've got a small fund that they're running or whether they're, have had been a, like I've had people that have said, oh no, I'm, I operate gyms and I'm wanting to move into allied health or I currently am a physio with a sole trader mobile practice and I want to put some roots down. So, you start to do that and then you start to identify. what are your motivations and then match that with what's on offer. And then you figure out what are their capacity when it comes to financing it and.
and geographically where are they located and you start to just know like it's about being really practical with like are they going to fit this business and they will have questions as well to try and figure out are they the right fit for the business and then there are tools that we have like we create an information memorandum so really comprehensive document that goes through the history of the business the open hours the team financials
If it's like if it was an e-commerce business and it was there and talked about their stock and inventory levels, whether they use three PLs or if it was a technology business, we'll talk about churn rates and their annual recurring revenue and are they international? So it's all about your industry, look at risk profiles, all sorts of weightings and things like that. So that documents brilliant because most people will
ask questions, then they will read that at 10 o'clock at night so that's a really valuable tool. And then if it's a freehold, I'll go ahead and additionally create like a look book because I just think that, it's sometimes hard to go and view a physical premises of a, a, of a business because there's so much confidentiality around it. So I will put lots of tools in place to try to walk a potential buyer through the space.
and what that means for the business.
Sam Penny (23:16)
So you certainly spend a lot of effort making the business look shiny, making it look attractive and marketable, but how do you stop a buyer from falling in love with a business that just doesn't fit them?
Sherryn Deetlefs (23:31)
Well, that's just, that comes down to the questioning, doesn't it? And, if it was finance, for instance, then it'll be, I'll put them in contact with some lenders. So whether that is a, like a small mortgage broker that works with across residential and commercial, or whether it's something that's a bigger entity, or if they're in healthcare, we've got contacts in Medfin, Medpro, Commonwealth Bank, and all sorts of lenders like that. So.
So it's really just matching them so that they can keep asking the right questions to, because obviously if they hit a brick wall, then they're going to stop asking the question. So, but I mean, if everything goes to plan and they do seem to be the perfect one, then I would have a meeting with the, introduce them to the, to the vendors. And so that might be a face-to-face meeting in our link offices so that it's kind of like not even on site.
Because you want to get the blessing of the vendor to go, yes, I think this person will be the perfect person. Let's explore further before we go and take them to the business and introduce them to the systems and processes.
Sam Penny (24:39)
Are there any red flags that you often tell buyers to look out for during due diligence?
Sherryn Deetlefs (24:46)
I absolutely. So it's not so much about red flags. It's about if they don't have the right skill set or, I might say to them, like if, for instance, if you're in healthcare and they're not an ARPA registered professional, that's going to impact how they get funding that might impact their understanding of legislation requirements and compliance across the practice. So
you try to just bring forth the key drivers that are required and the knowledge to run the business. Like that's really key. And if it's a fully managed business and there's a team in place, then it has to be then how are they going to work with the general manager in place to and what's important to them and what do they need to sort of stay away from and what do they need to step into?
Sam Penny (25:30)
So you've represented businesses in physiotherapy to mobile health services. What makes a buyer say yes to one and no to another, do think?
Sherryn Deetlefs (25:42)
well, like it all comes down to fit. It's, it's just fit. So, we've had, ⁓ I've had accountants look at day's bars and it's just numbers. So for them, if the numbers don't match and don't match what they're looking for, then that's not going to work. ⁓ I've had, I've actually had physios look at physios and it hasn't worked. So it's really just about that, that perfect match. It's so much more difficult than.
than buying a house. I mean, it might even come down to like, we've got a really strong growth strategy and it has to be has to grow for us to, to want to take on this opportunity. And then it goes to, well, what are we, what are our, what are we allowed to do? How many car parts do we have? How many customers can we have or clients can we have here at any one time? What's what lease is in place? so, so many, so many factors, and you just keep keep matching.
Sam Penny (26:33)
is
Sherryn Deetlefs (26:35)
matching people, talking to people.
Sam Penny (26:35)
So
you mentioned fit. How important is cultural fit and operational fit compared to the financial return?
Sherryn Deetlefs (26:46)
Well, I think it's like you've got to look at financial return first. So some of those things tick, tick, tick, this is looking pretty good. Then we then they start to look over and look more at culture. And like I said, it might not be the buyer that cares as much about the culture as the vendor. And so it might be the vendor saying, are you going to be the right fit for my team? If you're working health or education, wellness, any of those kinds of spaces.
people genuinely start out like, they might, their first qualification or their first step into business in that space is because they love people. so typically what I found if you're in any of those industries that you're exiting and you feel almost like a sense of like guilt for leaving your team. and so I do a lot of, ⁓ have a lot of conversations with the vendor about
to hand over and they talk constantly about I really want it to be a smooth transition for my team and I really what can I do to I don't want them to leave them in the lurch and maybe I should stay on longer and so culture becomes yeah significant for both sides really.
Sam Penny (27:56)
So if you've got a great example of where the buyer and seller just absolutely clicked.
Sherryn Deetlefs (28:03)
Yes, an exercise, mobile exercise, physiology business. So it was a physiotherapist, sole trader. She was the very first inquirer that I had. So Link has a database of like 250,000 active buyers. So as part of our marketing, it goes out there. So she was the very first person to respond within, six hours of the listing going up. And she said, yeah, I'm just looking for like, I love what I do, but I'm just looking.
for something a bit more, like the next step. And so why that was great was that if you're an exercise physiologist, you appreciate physios and so there's this mutual respect. So they just got on, they just got on so well. to the point that what came out during due diligence was that exercise physiology team.
there were two practitioners that were going on holidays like back to back and it meant that she was going to have to step in and be an EP for a period of time as well. And she was actually completely okay with that. what, because of the age of the exercise physiologist, they had great respect for her as the new owner coming in. But I had to kind of give her bit of a confidence boost and tell her that these guys are young.
this industry is new, they're going to appreciate the skills that you're going to introduce them to. And so it just became this beautiful thing. And she'd worked in aged care as well. So they'd also had an NDIS component to the business. She really appreciated care and that was probably better than some of the other inquiries that we'd had. So was just great.
Sam Penny (29:36)
Fantastic. Now, Sherryn, one of the things that really stands out about you is how diverse your career has been. So I want to talk about how that matters for your clients. How does having built companies, built businesses yourself, how does that change the way that you communicate with the sellers, the business owners.
Sherryn Deetlefs (29:42)
Thank you.
Yes, well, yes, nothing like age to kind of have on your side when it comes to and different experiences. guess, look, someone said to me the other day, ⁓ gosh, you're so energetic and so curious. And I think that that is probably a really accurate way of describing me. when I'm talking to anyone, I genuinely am curious about like what and how and why and who.
And how did you do that? And did you know this? And I talked to that person. And so I think because of the curiosity, then I can extract the story really well. And then if you know the story really well and you really care about the people that you're working with, then that helps you when it comes to selling. So I don't know that there really has been any one that I've spoken to so far that I haven't gone, ⁓ my gosh, I love your website.
Sam Penny (30:30)
Hehehe.
Sherryn Deetlefs (30:47)
and how did you do that international distribution? And what is your churn right for that? Like there's, there's always been something that I've had an experience in. And then it's just like digging deep real quick to make sure that I'm really working on behalf of the vendor and, what are their goals and motivations? Because really at the end of the day, I think it's like people and their goals and then what do they want to achieve? So that outcome, and if I can be part of that journey, my gosh, I'm like living my best life.
Sam Penny (31:15)
You've also got a pretty wide mix of qualifications. How does that help you understand different industries?
Sherryn Deetlefs (31:16)
Thank
Oh, hilarious. Probably driven by self doubt over the years. So every time I was in a space that I was like, Oh, like with with Jamberry I to bring in container loads of stock of products that I had designed and done all the textile prints for. And I remember thinking one night, how can I get rid of this 3am thought of like, Oh, I hope all the color palettes works well together. So I would just go I just did like a 12 month diploma of interior design in that regard or
I've done short courses in design thinking for innovation, product management, I've got a degree in sports management. I just sort of jump in and go and educate myself and talk to as many people as possible just to kind of rev up the knowledge, rev up the skill set.
Sam Penny (32:12)
Love it, love it. Now business sales, they can be really emotional at times. So how do you balance empathy and getting the deal done?
Sherryn Deetlefs (32:21)
Well, I think it has to always come back to your goals. So I am really, really people centered and I'm very aware that like I come across as like very, very warm. So I am often aware that, like we have to always come back to like, what is the intention? What is the goal? So when it comes like very first thing is like in, if you're wanting to sell your business, it's like, what's your goal? What's your timeline? Is there a number that you want to achieve?
what's important for your team. So just to really understand that. And then we just keep coming back to that, like through the whole process. And it doesn't mean that a vendor's goals can't change during the process. Like something might come to their attention. They might think, ⁓ I really didn't think I cared about that, but now I do. And I'm okay to recalibrate at any time. And I just think it's communication, really good communication, and then just keeping everybody on the same page. So sometimes it might seem a little redundant, but
I will shoot a text message to this person, to that person, just to make sure that everything is clarified because it then takes the emotion out of the decision making and it just means more logical analytical thoughts.
Sam Penny (33:33)
All right, now if you could give one piece of advice to a business owner who is thinking about selling their business in the next 12 months, what would that be?
Sherryn Deetlefs (33:42)
⁓ 100 % it would be get an appraisal early. Like reach out to somebody, reach out to me right now. Appraisals, people can talk to you without there being any cost because that means that you are educating yourself on the knowledge and the process. And that means you have an opportunity to go and maybe make a few tweaks in your business. There might be a few things that you put together that you hadn't thought about. There might be some things that you pull apart.
and just you start to change the lens that you look at your business. And that way then you can go, oh, maybe I don't want to sell it right now. Maybe I want to sell it in three years time. Maybe I need a business coach first to help sort of clarify a few things and get some growth before we go to market. then you know what you need to do.
Sam Penny (34:31)
I've certainly seen with some of my private coaching ⁓ clients where they've always had a focus on the profitability of the business, but when you actually look at that multiple, quite often when they're not putting in standard operating procedures or making the business more owner independent, they could actually be missing out on hundreds of thousands of dollars in that valuation.
Sherryn Deetlefs (34:55)
that is so true. We call them weighting factors. And it's like you look at the risk of the industry, you look at the risk of the business in that industry. Because at the end of the day, that's what buyers are going to go, great, your financials are good. Okay, that makes sense. Your price point makes sense. But it's all these other things will determine how much more they're willing to pay for something, and whether they are willing to offer anything at all. So
All those things that you mentioned, Sam, so valuable.
Sam Penny (35:25)
Now, what's one piece of advice you would give to someone who's buying their first business?
Sherryn Deetlefs (35:31)
⁓ well, think, you know, if you look at the IM, that will reveal lots of information and start to think about how you really are going to fund it and whether your qualifications and experience match that. And then you talk to the broker, like phone the broker. If they don't respond to you, just keep hounding them because they have all the answers. They should know their client really well and they should be able to uncover the things that are maybe like...
the between the lines kind of things.
Sam Penny (36:01)
Okay, now, Sherryn, before we wrap up, I've got the quick fire round. It's short questions, quick answers. Don't think too much about them. And I'll tell you what, they certainly don't relate one to the other. So what's the first thing you do when you start your day?
Sherryn Deetlefs (36:15)
if I can exercise.
Sam Penny (36:17)
Fantastic, what kind of exercise?
Sherryn Deetlefs (36:19)
Oh, I do love ocean swimming. So that's like my favorite thing. I live in Queensland, so it's pretty easy. I mean, you can put a wetsuit on to jump in the water, go for a swim.
Sam Penny (36:29)
Yes, I love, as you know, I love a good ocean swim too. Long Oceans Swim's English channel, yes. What's the most valuable business lesson you've learned?
Sherryn Deetlefs (36:32)
A long ocean swim!
The most valuable business lesson is probably to use a business broker because they will get you the highest price for your business.
Sam Penny (36:50)
All right, a book or resource you'd recommend to any business buyer or seller.
Sherryn Deetlefs (36:55)
Simon Sinek's start with Why
Sam Penny (36:57)
Yeah, absolutely brilliant, isn't it? And it brings in so much of the core values into the business and makes it easier to find the right fit between the buyer and the seller as well. Now, one industry that you think is underrated right now.
Sherryn Deetlefs (36:59)
Yeah, I love that.
Yeah.
I totally think that probably healthcare. I really love healthcare. I love how broad healthcare is. And I would even say that like the fringe of that is like the wellness. Like I'm seeing wellness actually moving into healthcare. There's so many synergies in those spaces.
Sam Penny (37:28)
All right, last question, you ready for it? What's your coffee order?
Sherryn Deetlefs (37:31)
Yeah.
Let's say a mocha full cream milk. Bit of a child's deal, but you know, that's how we roll.
Sam Penny (37:36)
haha
Love it.
Sherryn, thanks for giving us a look into how you approach business sales and purchases for our listeners. If you're thinking about selling or buying a business and you want someone who's walked the path herself, you need to connect with Sherryn Deetlefs's. Sherryn, how can people get in touch with you?
Sherryn Deetlefs (37:57)
easy. So I'm a Link business broker. So if you went to Link and looked up Sherryn Deetlefs I also am on Instagram. So that's Sherryn Deetlefs business broker. I'm on LinkedIn as well, Sherryn Deetlefs So reach out, shoot me a text, phone, email. Anyway, I'll respond.
Sam Penny (38:17)
Perfect, and I'll put all of those links into the show notes. If you've enjoyed today's episode, make sure you hit subscribe wherever you're listening, share it with a friend and join me next time as we dig into more stories, strategies and insights to help yourself smart and buy better. Until then, I'm Sam Penny and this is Built To Sell, Built To Buy.
