Next week I will be heading to Kyoto, Japan to present at the 28th Pan Pacific Congress of Real Estate Appraisers, Valuers and Counselors.
My presentation is on family business dynamics and how they impact business and related asset valuations.
The JPAbusiness team has a lot of experience in this area – over the years we have advised first, second and third-generation family businesses with turnovers ranging from half a million to 250 million dollars, across a wide range of industries.
We’ve seen the best and worst of ‘family business dynamics’ and learned quite a bit about how to get the most out of this very common business structure.
Sharing our family business research
As well as sharing my own experience in Japan, my presentation will draw on research conducted by business analyst Louise Carroll and myself for a family business research paper we wrote in July.
As well as secondary source analysis, our research paper includes insights from a recent survey of our family business clients and valued business advisors we have worked with over the years.
The research identified six factors which have the biggest impact on family business value on exit:
- Pipeline of work
- Reliance on key management personnel
- Expectations versus reality
- Succession planning
- Business culture
- Real estate assets.
Part of my presentation will involve explaining how these factors can be managed throughout the life of the business to positively impact value on exit.
The presentation – and research paper – will be ‘distilled’ into a family business valuation eBook in coming months, so keep an eye out for it.
Why go to Japan?
Last year we were involved in a successful business sale transaction involving the Australian arm of Japanese-owned multi-national corporation Satake, and Denny’s Silo and Engineering, a very successful family business from Queensland. 
Our role was to conduct a business valuation followed by detailed due diligence on the Denny’s opportunity for Satake Australia.
The Satake/Denny’s transaction did not happen in isolation and we are, in fact, seeing increasing global interest in Australian SMEs, in terms of mergers and acquisitions.
For this reason I was delighted to be invited to present at the Pan Pacific Congress. I see it as a way to share JPAbusiness’ insights, while also keeping up-to-speed with the trends and issues impacting our client base.
James Price has over 30 years' experience in providing strategic, commercial and financial advice to Australian and international business clients. James' blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.