How to avoid real estate traps when buying a business [cartoon]

Posted by James Price | JPAbusiness on 17-Oct-2018 02:00:00

Businesses – particularly family businesses – often use real estate assets as part of their wealth generation strategy.

This may lead to situations where the business and real estate assets are interdependent, creating complexities when it comes time to exit and establish a fair market valuation.

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Topics: Family business, Business Value, Selling your business, Buying a business, Starting a business, Advice, Valuations, cartoon

How to prepare your business for sale [cartoon]

Posted by James Price | JPAbusiness on 01-Aug-2018 02:00:00

Ideally, a business will be set up for sale from the moment it begins operating.

After all, you never know when someone may approach you about buying your business, or when unforeseen circumstances may force you to sell.

A previous JPAbusiness client is a good example of why it pays to be prepared. 

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Topics: Selling your business, Exiting your business, Advice, Family business, cartoon, Business advisor

When your kids don't want to take over the business [video]

Posted by James Price | JPAbusiness on 21-Feb-2018 02:00:00

If you assume your children will take over your business and only discover they're not interested when it's time for you to exit, chances are it will hurt more than your feelings.

As I explain in the video below, this situation is also likely to negatively impact your business value on exit.

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Topics: business advice, Family business, Business Value, Succession planning

How to get governance and business structures right [video]

Posted by James Price | JPAbusiness on 31-Jan-2018 02:00:00

In our experience dealing with clients over the years, we've found many businesses start as side projects.

In this video, James tells the story of a client whose 'side project' became a multi-million dollar transport business.

He also points out some risks to watch out for regarding goverance and business structure issues when a business starts this way, and how to ensure they don't negatively impact value down the track.

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Topics: Business advisor, business advice, Business Structures, Governance, Family business, Business Value

[Video] How family business culture impacts value

Posted by James Price | JPAbusiness on 24-Jan-2018 02:00:00

Family businesses have a reputation for having strong, efficient business cultures.

(And, as we all know, strong, sustainable business cultures contribute to strong, sustainable financial performance and, hence, business value.)

While this reputation is well-deserved and generally true, the family business structure can also lend itself to developing a 'toxic' business culture.

As James explains in this video, there can be a two 'classes' of individuals in a family business. 

 

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Topics: Business selling, Business advisor, selling a business, business advice, staff management, Family business, Business Value, Business culture

Pros and cons of a company structure [infographic]

Posted by James Price | JPAbusiness on 09-Nov-2016 05:46:00

Companies are very popular business structures and offer a number of advantages over Sole Trader and Partnership structures, particularly in the areas of asset protection and finance raising.

However they are also more complex structures, and cost more to set up and administer.

This week’s infographic takes a look at Companies: their key features, pros and cons.

Next week we’ll bring you the final in our Business Structure infographic series: Trusts.

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Topics: Business Structures, Family business, Advice, Starting a business, Buying a business

What happens after you sell a business? [cartoon]

Posted by James Price | JPAbusiness on 09-Nov-2016 04:13:00

After the process of finding a buyer and selling your business, there is a good chance you’ll still need to turn up to work for a period of time.

Conditions of a sales agreement often include requirements for continuation of service for a transitional period. This involves working alongside the new owner for a set period to share information and knowledge of the business.

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Topics: Selling your business, Exiting your business, Advice, Family business

How to drive positive business culture [cartoon]

Posted by James Price | JPAbusiness on 02-Nov-2016 04:14:00

It’s no secret that strong, sustainable business cultures contribute to strong, sustainable financial performance and, hence, business value.

Generally speaking, family businesses tend to have an enviable culture which other types of businesses can learn from.

This is often due to the presence of engaged owners working alongside others in the business and overseeing its strategic direction.

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Topics: Family business, Business Value, Staff, Work Environment, Advice, Running your business

How to be fair when transitioning to the kids [cartoon]

Posted by James Price | JPAbusiness on 28-Oct-2016 02:04:00

Business owners face unique challenges when they have multiple children and those children have their own expectations as to how the family business should transfer to the next generation.

Engaging a business advisor early on can assist to ensure each party feels that the way a business is transferred to the next generation is fair and reasonable for all.

This process is best started well before parents are looking to retire or children are heavily involved in the business.

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Topics: Family business, Succession planning, Exiting your business

What is my business worth? [cartoon]

Posted by James Price | JPAbusiness on 26-Oct-2016 05:02:00

Put simply, the market value of your business is the amount a buyer is willing to pay for it.

It’s a hard pill for many vendors to swallow, but chances are a buyer will perceive the elements of your business’ value differently to the way you see them.

Here are some of the reasons why:

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Topics: Valuations, Business Value, Family business, Advice, Selling your business

 
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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