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    10 steps to buying a business [infographic]

    Posted by James Price | JPAbusiness on 28-Jun-2017 05:44:00

     

    Step 1: Imagine the process of assessing different businesses for sale as a funnel

    The top of the funnel is wide and has a screen which sifts out businesses which don’t meet your requirements.

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    Topics: Buying a business, Free download, infographic

    Due diligence – how to uncover those skeletons before it's too late

    Posted by James Price | JPAbusiness on 28-Jun-2017 05:36:00

    A successful business purchase is about doing your homework upfront and making sure you are well prepared

    In business circles this is called ‘doing your due diligence'

    You don’t want any nasty surprises after you take over – it's best to know about skeletons in the closet before it's too late to address them!

    And if you know the risks before you jump (buy the business), then you can plan your landing (mitigate and manage the impact) during the business transfer.

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    Topics: Buying a business, Due diligence

    What is 'strategic' value in a business sale?

    Posted by James Price | JPAbusiness on 21-Jun-2017 05:57:00

    Strategic value is the value a purchaser is willing to pay for a business, over and above what an impartial business valuer might determine is ‘fair market value’.

    As we have discussed in our eBooks, one common method of determining a business’ fair market value is to use a multiple of earnings.

    Multiple of Earnings is the term for how many years or months a purchaser is prepared to wait before they recoup the value they paid the outgoing business owner, based on an assessment of business maintainable earnings (or sustainable earnings).

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    Topics: Selling your business, strategic value

    What information must you share when selling a business? [cheat sheet]

    Posted by James Price | JPAbusiness on 21-Jun-2017 05:01:00

    When selling your business it’s important that potential buyers can feel confident the information they have been given about its value proposition is credible, robust and transparent.

    Often as a business owner we take things about our business for granted. These may include:

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    Topics: Selling your business, Advice, cheat sheet

    Time for an end-of-financial-year check-up? [template]

    Posted by James Price | JPAbusiness on 14-Jun-2017 05:17:00

    We created the JPAbusiness Business Health Check template to use with our business advisory clients.

    It helps them to identify business health issues they can address in-house, as well as areas where they need to seek external advice on methods to improve the business’s outcomes.

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    Topics: Free download, Advice, Running your business, Template, Financial

    Strategic planning – it doesn’t have to be so hard [blog]

    Posted by James Price | JPAbusiness on 14-Jun-2017 05:04:00

    When I speak to business owners about planning I find their eyes often glaze over or they break out in a cold sweat.

    “Planning? Oh no!” they say. “Do we really need to talk about that? How will it make my business better?”

    But planning doesn’t have to be an onerous task and it is very valuable.

    I recently met with a new client to discuss the strategic planning program we are about to embark on with them.

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    Topics: Advice, Business Planning

    How does a business' online activity impact its value? [infographic]

    Posted by James Price | JPAbusiness on 07-Jun-2017 05:04:00

    In order to determine a business’s value we assess business health factors, which may include:

    • Financial performance
    • Quality of product or service delivery
    • Point of difference and competitive position
    • Staff culture and performance
    • Physical location and geographic coverage
    • Diversity, size and quality of clients
    • External pressures on business, including industry trends and dynamics
    • Future projections and prospects
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    Topics: Business Value, Online, Free download, Running your business, infographic

    How to calculate Business Maintainable Earnings [infographic]

    Posted by James Price | JPAbusiness on 07-Jun-2017 04:40:00

    Business Maintainable Earnings (BME) reflect the ability of a business to generate earnings into the future.

    BME is the one of the most important concepts the market will consider when assessing a business’ value.

    The following infographic shows how to take account of abnormal fluctuations in your business’ performance (i.e. normalise) and calculate your business’ BME.

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    Topics: Business Value, Valuations, BME

    How long should I allow to exit my business? [video]

    Posted by James Price | JPAbusiness on 31-May-2017 05:37:00

    In this video I answer a common question: If I am just starting to think about exiting my business, how much time should I allow to see the process through?

    Using the example of a JPAbusiness client in Sydney who is currently going through a difficult succession process, I explain why talking about succession, getting advice and beginning planning well in advance, will definitely streamline the eventual exit process.

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    Topics: Advice, Exiting your business, Video, Succession planning

    5 questions for business sellers to ask themselves

    Posted by James Price | JPAbusiness on 31-May-2017 05:03:00

    Q.1 Do I really want to sell my business and, if so, why?

    • Do you want to sell because you’ve had the business for five years and the results have been poor?
    • Do you want to sell because you’re over-exposed to borrowings, your cash flow is tight and you can’t see a way to get ahead?
    • Do you want to sell because it’s time to retire or move on to the next stage of your career?

    Your reasons for selling will help you create a negotiation framework to determine what an acceptable offer might be, so it is critical you be honest with yourself when answering this question.

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    Topics: Selling your business, Advice

     
    Disclaimer: The information contained in this blog is general in nature and should not be taken as personal, professional advice. Readers should make their own inquiries and obtain independent, professional advice before making any decisions, taking any action or relying on any information in this blog. 
     
     

     

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