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    [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. 

    Continue reading...

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

    How to set up a business for sale or transition [cartoon]

    Posted by James Price | JPAbusiness on 11-Nov-2016 05:10:00

    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. This multi-generation family business received an unexpected approach from a potential buyer and was quite unprepared to enter sale negotiations.

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

    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: Buying a business, Advice, Family business, Business Structures, Starting 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, Advice, Family business, Exiting your business

    How to avoid real estate traps when buying or selling businesses [cartoon]

    Posted by James Price | JPAbusiness on 04-Nov-2016 05:20:00

    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.

    Continue reading...

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

    Continue reading...

    Topics: Business Value, Work Environment, Advice, Staff, Family business, 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, Exiting your business, Succession planning

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

    Add value by separating 'you' from your business [cartoon]

    Posted by James Price | JPAbusiness on 21-Oct-2016 05:25:00

    Many businesses, particularly small-medium businesses, rely heavily on one or two key individuals for the business to operate.

    These individuals are often the business owners and they may be reluctant to delegate control and decision making for a variety of reasons.

    Whatever those reasons, the result is centralised decision making, knowledge and experience, which are not easily transferable in a business sale.

    Ultimately, of course, that impacts business value – and not in a good way!

    Continue reading...

    Topics: Business Value, Family business

    Should my kids take over my business? [cartoon]

    Posted by James Price | JPAbusiness on 19-Oct-2016 05:33:00

    Businesses that transition between generations are the exception, not the rule, and represent a declining trend.

    Just because you have passion for your business does not mean your children have inherited the same enthusiasm. Never assume!

    Communication between family members is crucial to ensure there is agreement on whether the next generation will or will not take over, and these conversations should be regular dinner table events by the time the children are teenagers.

    Continue reading...

    Topics: Family business, Succession planning

     
    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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