How to attract valuable customers [infographic]

Posted by James Price | JPAbusiness on 08-May-2019 02:00:00

 

Business value comes in two different ways:

  • during the course of operations, and
  • at the end, when you sell or pass on your business.

Many people run successful and efficient businesses, but don’t take the time to sit back and ask ‘what is actually driving the value in my business?’

Understanding those value drivers and focusing energy on them is the difference between having a business that runs efficiently today, and one that builds value over time.

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Topics: Business Value, Customers and Clients, Customers, infographic, business advice, strategic planning, Parramatta, Orange NSW

What is ‘discounted cash flow’ when valuing a business?

Posted by James Price | JPAbusiness on 08-May-2019 02:00:00

When advising clients looking to buy businesses, as well as running businesses, we use a number of different methodologies to assess value.

A business is a dynamic entity – a ‘going concern’ – so you can’t just value it at a point in time. You need to assess the level of cash flow it is generating today, and what you can expect it to generate into the future. You then need to assign a ‘present day value’ to those potential future cash flows. 

One way we do this is by using the discounted cash flow (DCF) valuation method.

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Topics: business advice, Business valuation, valuing a business, business basics, Parramatta, Orange NSW, discounted cash flow

How to choose a business broker [video]

Posted by James Price | JPAbusiness on 01-May-2019 02:00:00

When choosing a broker to help sell your business, there are three key elements to look for:

  1. Experience in your industry and in selling businesses of your size and ‘shape’
  2. Project management expertise
  3. Communication skills.
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Topics: Selling your business, Advice, Video, Business advisor, business broker, Parramatta, Orange NSW

3 first steps when selling a business [infographic]

Posted by James Price | JPAbusiness on 01-May-2019 02:00:00

Selling a business should not be like exploring an uncharted continent.

When embarking on a business sale you’re not just taking yourself, but you must also bring along your business partners, staff and advisors for the journey. It’s a massive undertaking and not one to be entered into lightly.

Don’t go exploring on a business sale unless you at least know where you want to end up.

This week's infographic is for those just setting out on the business sale journey, and step 1 is about being honest with yourself regarding why you're on this journey to help you determine where you need to go. 

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Topics: Selling your business, infographic, selling a business, Business valuation, Business advisor, Business selling, business broker, Parramatta, Orange NSW

5 issues to be aware of when planning a joint venture [infographic]

Posted by James Price | JPAbusiness on 24-Apr-2019 02:00:00

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, shareholders agreement, joint venture, Parramatta, Orange NSW

3 ingredients needed for a successful business sale or purchase

Posted by James Price | JPAbusiness on 24-Apr-2019 02:00:00


Based on our years of business broking experience – and successfully making a match between many buyers and sellers – answering ‘yes’ to the following three questions should set you up for a successful business transaction:

  1. Price – Is the price market related and does it reflect the value a willing buyer, under the circumstances of the sale transaction, will perceive as fair?
  2. Facts – Are the facts on the business or opportunity clear, unambiguous and relevant to the risks, issues and opportunities the risk-taking party will likely perceive in making the purchase?
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Topics: Buying a business, Business transfer, business advice, selling a business, Business advisor, business broker, Parramatta, Orange NSW

Do I have to get a valuation before selling?

Posted by James Price | JPAbusiness on 17-Apr-2019 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: business advice, selling a business, Business valuation, Parramatta, Orange NSW

What happens after you sell your business? [cartoon]

Posted by James Price | JPAbusiness on 17-Apr-2019 02:00:00

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, Business advisor, cartoon, Parramatta, Orange NSW

Mining services business for sale

Posted by James Price | JPAbusiness on 10-Apr-2019 02:00:00

JPAbusiness is presenting a rare opportunity to purchase a well-established mining and quarrying services business with a portfolio of loyal, blue chip clients throughout Australia.

Established in 1980, the business manufactures and installs specialist equipment, providing turn-key solutions to mining and quarrying clients.

The business is being sold as part of the owner’s retirement plan. The owner has agreed to provide extensive transitionary advice and assistance, consistent with a desire to see the firm successfully move to its next stage of development and success.

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Topics: Business for sale, mining and quarrying, mining services, strategic acquisition

What is an earnout or contingency payment?

Posted by James Price | JPAbusiness on 10-Apr-2019 02:00:00

Earnouts and contingency payments are typical features of business sales in the Australian, European and US corporate markets.

In our work in Australia, we are seeing them increasingly used in the small to medium-sized enterprise (SME) market and we’re often involved in structuring these deals, either from a purchaser’s or vendor’s side.

If you are considering selling a business at the larger end of the SME market, with a longevity of orders and forward earnings, it’s important to consider the concept of earnouts and contingency payments because it will come up from interested parties.

It’s also important to recognise that earnouts as part of the purchase price have capital gains tax implications, so expert advice is essential.

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Topics: Buying a business, business advice, selling a business, seller earnouts, business basics, Parramatta, Orange NSW, contingency payment

 
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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