Do business buyers still pay for goodwill?

Posted by James Price | JPAbusiness on 12-Dec-2018 02:00:00

Goodwill is an intangible value associated with a business and is based on the business' potential to provide a future flow of earnings beyond the current owner. 

Stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market. Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

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Topics: Business Value, Selling your business, Exiting your business, Business transfer, Due diligence, Advice, goodwill

8 due diligence tips for buying a business [cheat sheet]

Posted by James Price | JPAbusiness on 12-Sep-2018 02:00:00

When buying a business, the due diligence process involves checking and verifying information relating to the basic operations and performance of the business you're interested in.

Due diligence is about identifying risks, issues and any material differences between what has been represented in information provided previously on the business, and what you and your advisor identify in the due diligence process. 

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: Due diligence, Buying a business, business advice, business buying, cheat sheet

How to manage customer and supplier risk when buying a business

Posted by James Price | JPAbusiness on 16-May-2018 02:00:00

Last month I wrote a blog about how to avoid losing key staff when buying a business.

In this blog I'm sharing advice on how to manage another critical risk when buying a business: customers and suppliers.

This risk relates to key customers and/or suppliers taking flight from the business you’ve purchased in the early stage of the transfer.

In doing your due diligence it’s very wise to look at both supplier and customer concentration risk.

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Topics: business advice, Buying a business, risk management, Customers, Suppliers, Due diligence

What is due diligence and do I need to do it? [video]

Posted by James Price | JPAbusiness on 28-Feb-2018 02:00:00

Due diligence is a critical component of buying a business.

As we always say, it's important to discover any skeletons in the closet before it's too late!

In this video I've shared my 3 top tips for conducting due diligence on a potential business purchase.

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Topics: Buying a business, business advice, Due diligence, business ownership

3 components of due diligence [infographic]

Posted by James Price | JPAbusiness on 11-Oct-2017 04:00:00

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

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

Due diligence is not just for corporate players buying blue chip, listed companies – it’s just as important in the small and mid-cap business market.

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Topics: Buying a business, Selling your business, Due diligence, infographic, Advice

Don't blow your redundancy payout on an overpriced business [blog]

Posted by James Price | JPAbusiness on 09-Aug-2017 05:05:00

Buying a business is a risky way to spend a redundancy payout – true or false?

Answer: True and false, depending on how you go about it.

Often we come across clients who have been made redundant after a long period in an employed situation. 

They are at an age where they still have plenty of potential to make a meaningful contribution in another employed role, or in owning a business. In fact, some of the expertise they have built up over their career is very appropriate for owning and running their own business.

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Topics: Buying a business, Advice, Due diligence

Download our Due Diligence Checklist [free template]

Posted by James Price | JPAbusiness on 19-Jul-2017 01:00:00

Due diligence is a critical component of a successful business purchase – and it's also a complex one.

We have created the JPAbusiness Due Diligence Checklist to help buyers:

  • conduct financial and commercial due diligence
  • understand the basic requirements of legal due diligence
  • recognise which documents you need to request from sellers and check them off as they are received.
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Topics: Buying a business, Due diligence, Advice

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: Due diligence, Buying a business

How to conduct due diligence when buying a business [blog]

Posted by James Price | JPAbusiness on 26-Apr-2017 05:25:00

Due diligence is a similar process for everyone, but it’s not the same process. The depth of your analysis will depend on your appetite for risk, the particular business you are looking at and your specific requirements for a business.

It involves assessing your expectations of a business proposition against the target acquisition to determine if it measures up and where there might be gaps, risks and issues in a transition to ownership.

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Topics: Due diligence, Buying a 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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