How to do 'vendor due diligence' when selling a business [checklist]

Posted by James Price | JPAbusiness on 28-Jul-2021 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, selling a business, Business advisor, Business selling, business broker, vendor due diligence, JPAbusiness, Parramatta, Central West NSW, business sale, business sale transaction advisor

6 key elements of managing your staff [cheat sheet]

Posted by James Price | JPAbusiness on 21-Jul-2021 02:00:00

A high-performing team is business 'nirvana'. A high-performing team:

  • is one where both the individuals and the team as a whole are performing to their optimum potential;
  • is aligned and attuned to your vision for where you want to take the business;
  • drives the key tasks and aspects of the business to achieve both its short- and long-term objectives.

In our eBook, Managing staff for high performance, we discussed 6 key elements that you as a business manager, owner or leader need to think about as you go about your day-to-day activities, in order to positively manage staff and help develop them into a high-performing team.

We've distilled that information into the following cheat sheet.

Continue reading...

Topics: cheat sheet, staff management, business advice, Business advisor, staff performance, performance review, James Price, JPAbusiness, Parramatta, managing employees, Central West NSW, managing staff

How to avoid losing customers when buying a business

Posted by James Price | JPAbusiness on 14-Jul-2021 02:00:00

There are a number of risks when buying a business and one of them relates to key customers taking flight in the early stage of the transfer.

In doing your due diligence it’s wise to look at customer concentration risk. Where you have a significant concentration of one or two customers, in particular, you should try and protect against that risk.

Here’s an example of how purchasers can use a ‘hard’ provision to protect against this risk in the final contract:

Continue reading...

Topics: Customers and Clients, Buying a business, Customers, business advice, selling a business, risk management, James Price, JPAbusiness, Parramatta, Central West NSW, business sale, business sale transaction advisor

How to make a business private equity ready [cheat sheet]

Posted by James Price | JPAbusiness on 07-Jul-2021 02:00:00

Private equity is much more than just some capital.

You can get capital from plenty of places, but private equity aims to be an aligned partner, helping a business to grow, set strategy and problem-solve.

In our eBook Partners in Your Business, guest contributor Gareth Banks from Champ Ventures explained how private equity works and what sort of opportunities private equity investors look for.

We have distilled some of Gareth’s advice down into this cheat sheet, to help you make your business private equity ready.

Continue reading...

Topics: cheat sheet, Template, business advice, Business advisor, equity investor, business partners, Private equity, James Price, JPAbusiness, Parramatta, Central West NSW, private capital

Do I need a valuation before selling a business? [case study]

Posted by James Price | JPAbusiness on 30-Jun-2021 02:00:00

The simple answer is ‘no’, you don’t need a valuation to sell a business.

However, in terms of engaging JPAbusiness to sell your business, the answer is a resounding ‘yes’, you do need to get a valuation before you embark on a sale process.

The reason for that is part of our point of difference among business brokers. It’s based on a lesson learned early in the life of JPAbusiness, and backed by years of subsequent experience. 

Continue reading...

Topics: Case study, business advice, selling a business, Business valuation, Business advisor, James Price, JPAbusiness, Parramatta, client case studies, Central West NSW, transaction advice, business sale transaction advisor, selling my business

How to create a business plan

Posted by James Price | JPAbusiness on 23-Jun-2021 02:00:00

Business plans don’t have to be lengthy documents, but they do – in our opinion – need to be written down: if you haven’t written it down, you haven’t committed to it.

This short video series covers some key concepts related to business planning, including:

  • Why does my business need a plan?
  • How often should I review my business plans?
  • What to include in a Strategic Plan
  • What to include in an Annual Business Plan
Continue reading...

Topics: Business Planning, Template, Video, Succession planning, business advice, Business advisor, James Price, strategic planning, JPAbusiness, annual business plan, Central West NSW, business plan

Do I have to pay GST when buying or selling a business?

Posted by James Price | JPAbusiness on 16-Jun-2021 02:00:00

When working with clients who are either buying or selling businesses, we’re often asked: ‘Will I have to pay GST?’

The short answer, according to the Australian Tax Office (ATO), is:

No GST is payable on the sale of a going concern if certain conditions are met. (A ‘going concern’ is a business that is operating and making a profit.) However, as the seller, you may be able to claim input tax credits for GST you paid on expenses relating to the sale.

Of course, it’s never as simple as one paragraph when it comes to tax, so we’ve asked our business analyst Shirley Jin, who is also a CPA, to clarify those ‘certain conditions’ mentioned, and when you can and can’t claim input tax credits for GST paid on sale expenses.

Continue reading...

Topics: Buying a business, business advice, selling a business, Business advisor, James Price, JPAbusiness, Parramatta, taxation, GST, Central West NSW, tax advice, goods and services tax

Should I buy a business to get myself a job?

Posted by James Price | JPAbusiness on 09-Jun-2021 02:00:00

The short answer to this question is yes... and no.

Buying a business that provides you with a good job is definitely a worthwhile strategy, as long as it doesn’t just provide you with a job.

If you own a business, what are the main risks you will be taking?

  • Operational risk – As a business owner you count on your systems and processes to work in a predictable manner and accept the risk of those systems and processes failing. For example, your safety system could fail and cause injury to an employee, or your manufacturing system could break down, causing you to default on a major customer contract.
Continue reading...

Topics: Buying a business, business advice, Business advisor, business ownership, business broker, James Price, JPAbusiness, Parramatta, financials, redundancy, buy a business, Central West NSW, business sale transaction advisor, business transaction advisor

10 pieces of info to share when selling a business

Posted by James Price | JPAbusiness on 02-Jun-2021 02:00:00

When selling a business, you need to provide solid, robust and transparent information to support the performance of the business if you want to attract a confident purchaser who is willing to bid up strongly.

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.

The following infographic is a simple guide to 10 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, business broker, James Price, JPAbusiness, Parramatta, Central West NSW

7 golden rules for successful hiring

Posted by James Price | JPAbusiness on 26-May-2021 02:00:00

Great staff are critical to our success as business owners and managers, but finding and keeping the right people is an ongoing challenge for many businesses.

Unfortunately we can't conjure appropriately trained staff out of the air for our clients and subscribers, but we can provide advice to make the recruitment process as successful as possible.

In this video I outline our 7 'golden rules' for successful hiring.

Continue reading...

Topics: Employment and recruitment, Advice, infographic, cheat sheet, Template, Video, staff management, Business advisor, staff recruitment, hiring staff, James Price, hiring, JPAbusiness, Parramatta, Central West NSW

 
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. 
 
 

 

JPAbusiness

Topic

more

Recent Posts