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.

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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. 

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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
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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.

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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.
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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. 

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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.

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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

How to ensure you get good advice when buying a business [case study]

Posted by James Price | JPAbusiness on 19-May-2021 02:00:00

A few years ago we worked on a business sale transaction in which one side had far less robust advice than the other – you can guess which side was which!

Our client – the vendor – was selling a reasonably large, engineering-style business.

The purchaser – while a successful business operator – was not experienced at acquiring businesses and did not appear to have thought deeply about the sort of expertise they would need to advise and guide them.

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Topics: Buying a business, Advice, Case study, business buying, Business advisor, business broker, risk management, James Price, JPAbusiness, Parramatta, client case studies, buy a business, Central West NSW, business buyer

What is 'strategic' value when buying or selling a business?

Posted by James Price | JPAbusiness on 12-May-2021 02:00:00

Strategic value is the value a purchaser is willing to pay for a business, over and above what an impartial business valuer might determine is ‘fair market value’.

As we have discussed in our eBooks, one common method of determining a business’ fair market value is to use a multiple of earnings.

Multiple of Earnings is the term for how many years or months a purchaser is prepared to wait before they recoup the value they paid the outgoing business owner, based on an assessment of business maintainable earnings (or sustainable earnings).

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Topics: Business Value, Buying a business, Selling your business, Template, strategic value, Checklist, business advice, Business advisor, business valuer, JPAbusiness, Central West NSW, business sale transaction advisor, business value drivers

5 top issues when planning a joint venture [infographic]

Posted by James Price | JPAbusiness on 05-May-2021 02:00:00

The JPAbusiness team has been involved in setting up and facilitating a number of successful joint ventures over the years, and we have also been called upon to sort out arrangements where things have gone wrong or haven’t been set up with adequate planning and foresight. Preparation is key!

If you are considering entering into a joint venture, we have created the following infographic to help you.

The infographic lists five issues to be aware of and which should be raised with all parties early in the planning and negotiation stages. 

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Topics: Shareholders, infographic, business advice, Business advisor, business partners, shareholders agreement, business broker, joint venture, JPAbusiness, Parramatta, Central West NSW, entrepreneur

 
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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