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    Pros and cons of seller earnouts

    Posted by James Price | JPAbusiness on 27-Jun-2018 02:00:00

    I recently read a blog post about the pros and cons of seller earnouts, which I believe is worth sharing.

    The blog post was written by M&A specialist Dave Kauppi from MidMarket Capital, Inc, which is based in Chicago, USA. (You can click here to read Dave’s post.)

    It’s a useful article if you’re considering buying or selling a business and you want to explore measures to manage the risks of transfer and protect the value of the business, including delayed or ‘at risk’ payment of part of the purchase price consideration, such as an earnouts.

    Continue reading...

    Topics: Selling your business, Capital gains tax, business advice, selling a business, Business advisor, seller earnouts

    How to value a business

    Posted by James Price | JPAbusiness on 13-Jun-2018 02:00:00

    Business Maintainable Earnings (or Sustainable Earnings) is often the way the market values businesses, particularly small- to medium-sized enterprises that are not traded on the stock exchange.

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

    Continue reading...

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

    Free template: Succession planning scorecard

    Posted by James Price | JPAbusiness on 06-Jun-2018 02:00:00

    As a business owner, it’s never too early to start thinking about your succession strategy and developing the skills of your team and business capability.

    Many people think of succession planning as something old people do once they decide to exit their business. This is far from the truth.

    Succession planning is a young person’s pathway to building a valuable business. It’s about creating a sustainable business that will continue to operate successfully into the future, whether you stay in the business or not.

    Continue reading...

    Topics: Business Value, Selling your business, Advice, Valuations, Succession planning, Business advisor, business management

    Free template: Selling a Business Planning Sheet

    Posted by James Price | JPAbusiness on 30-May-2018 02:00:00

    If you’re thinking of selling your business, the JPAbusiness Selling a Business Planning Sheet can help place your business in the best position for a successful sale.

    This template contains 20 questions designed to prompt you to undertake the necessary thinking, planning and acting that will ensure you and your business are well prepared for the sale process.

    The free template can be downloaded in either pdf or Word format.

    If you find this template useful, please feel free to share it.

    Continue reading...

    Topics: Selling your business, Template, business advice, selling a business, Business advisor

    What information should I share when selling? [infographic]

    Posted by James Price | JPAbusiness on 30-May-2018 02:00:00

    If you are looking to sell your business, the more clearly you can describe your value proposition and present supporting information in the business sale process, the more chance you have of driving business value.

    Remember, for a business person, information can reduce risk and, therefore, increase confidence.

    You’re not going to have a confident purchaser willing to bid up strongly on your business if you don’t have solid, robust and transparent information to support the performance of the business.

    The following infographic is a simple guide to some of the key pieces of information you need to share when selling your business. 

    Continue reading...

    Topics: Selling your business, infographic, business advice, selling a business, Business advisor

    What is 'vendor due diligence'? [free checklist]

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

    When business owners come to see us, wanting to sell their business, we often get involved in providing what we term ‘vendor due diligence’.

    When conducting vendor due diligence for clients, our role is basically to ‘pretend’ we are the buyer.

    We look at a range of business health factors including:

    • financial performance
    • business performance
    • staff and organisational aspects
    • contracts, systems and suppliers
    • how the business creates and drives value in terms of its point of difference in the market
    • forward order book i.e. the pipeline, to understand the true nature of the business as a going concern
    • how exposed the business might be to individuals or particular customers or suppliers.
    Continue reading...

    Topics: Selling your business, Template, Checklist, business advice, Business advisor, vendor due diligence

    How to sell a business online without sharing too much

    Posted by James Price | JPAbusiness on 04-Apr-2018 02:00:00

    You’ll often hear the internet gurus say ‘content is king’ and that in order to be successful in the online sphere you have to share lots of relevant content.

    For some traditional business sellers, online marketing feels like the equivalent of walking around naked in public – you’ve got to show everything!

    This presents a real conundrum for business sellers because, as many of our clients know, being in business can involve dealing with commercially sensitive information.

    Continue reading...

    Topics: Digital marketing, Selling your business, Online, Advice, Exiting your business, business advice, selling a business, business broker

    How poor information hurts a business sale [infographic]

    Posted by James Price | JPAbusiness on 04-Apr-2018 02:00:00

    When selling your business, it's important to put yourself in the position of a buyer.

    Ask yourself: 'If I was considering buying this business, what would I want – and need – to know in order to make an informed decision about the opportunity?'

    As advisors, we understand that good information on a business opportunity is critical to a successful sale.

    Continue reading...

    Topics: Selling your business, business advice, Business selling, business broker

    How to 'seal the deal' when selling a business

    Posted by James Price | JPAbusiness on 07-Mar-2018 02:00:00

    Getting a business sale transaction 'over the line' is not about tips and tricks.

    Instead it's about efficiently managing the information flow through the detailed due diligence process to ensure all parties are well informed, the negotiating process progresses smoothly, and everyone can feel comfortable with the end result.

    A good advisor or broker will successfully manage that interface for you.

    In this blog, James shares some of the tools and strategies JPAbusiness employs to manage this final stage of the business sale process. These include:

    Continue reading...

    Topics: Selling your business, Advice, Exiting your business

    3 first steps for business sellers [infographic]

    Posted by James Price | JPAbusiness on 07-Mar-2018 02:00:00

    Selling a business is not a simple undertaking and we have created a number of free resources to help out:

    This week's infographic, however, is for those just setting out on the business sale journey:

    Continue reading...

    Topics: Selling your business, infographic, selling a business, Business valuation, Business selling, business broker

     
    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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