How to bring in a new shareholder [blog]

Posted by James Price | JPAbusiness on 14-Oct-2020 02:00:00

There are two golden rules when bringing an additional partner or shareholder into an existing business.

Golden rule 1: Understand what value the partner or shareholder is bringing to the business. Is it specialist expertise, an entry point into a new business line, strategic opportunities, funding… or all of these?

Golden rule 2: Understand the motivations and intentions of the new partner or shareholder – now and moving forward. It may help to seek some advisory or facilitation services to tease out and clarify these motivations.

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Topics: Advice, Business Planning, Legal, Running your business, Business Structures, Shareholders, business advice, shareholders agreement, JPAbusiness, Central West NSW

How to create a shareholders’ agreement [template]

Posted by James Price | JPAbusiness on 12-Aug-2020 02:00:00

If you’re a business owner considering taking on an investing party or shareholder, some form of written shareholders’ or partners’ agreement is vital.

Use the agreement to make clear all parties’ investment and partnership intentions and responsibilities from the outset.

Remember, this is your business, so you can cover whatever you think important, from business relationships, ethics and cultural issues, to insurances, taxation and debt obligations; it’s your blank canvas.

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Topics: Advice, Partners, Business Structures, Shareholders, Template, Checklist, business advice, Business advisor, shareholders agreement, Parramatta, COVID-19, coronavirus, Central West NSW

Capital gains tax issues to consider when selling a business

Posted by James Price | JPAbusiness on 07-Jul-2020 14:09:13

In 2014 we published an eBook titled Capital Gains Tax – Issues to consider when selling a small to mid-sized business. This eBook drew on extensive experience, including that of our guest contributor Michael Pisani, partner at Chapman Eastway, and remains one of our most popular publications to date.

Given the far-reaching scope of Capital Gains Tax (CGT) and the ever-evolving nature of taxation laws, in 2017 we released Capital Gains Tax 2.0 – Issues to consider when selling your business. The new eBook did not replace the original, but instead complemented it.

Over the past few months, the JPAbusiness team has been reviewing and updating the information in both eBooks, to reflect the most recent changes in Australian tax policy.

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Topics: Selling your business, Advice, Capital gains tax

14 ways to control cash flow and maintain liquidity [cheat sheet]

Posted by James Price | JPAbusiness on 20-May-2020 02:00:00

[This blog has been republished in the wake of COVID-19 developments, as having the liquidity necessary to continue operating effectively is critical in these times.]

As business valuers and brokers, and in advising clients on business performance and financing, there is a critical thing we look for: liquidity.

Liquidity is effectively how much cash a business generates and how stable and frequent that generation is. That ability to generate cash is a critical component of business value.

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Topics: Advice, Cash flow, Working capital, Running your business, cheat sheet, Business advisor, James Price, JPAbusiness, Parramatta, Orange NSW, COVID-19, coronavirus, liquidity

Business valuation or market appraisal – what is the difference? [video]

Posted by James Price | JPAbusiness on 18-Mar-2020 02:00:00

Business market appraisals and valuations are both robust assessments of a business’ worth and are appropriate for use in different circumstances.

In this video I explain the difference between a business market appraisal and a business valuation, and when each should be used.

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Topics: Business Value, Advice, Valuations, Video, Business valuation, market appraisal, valuing a business, Parramatta, Orange NSW

How your inventory management impacts business sale price [case study]

Posted by James Price | JPAbusiness on 11-Mar-2020 02:00:00

A few years back the JPAbusiness team facilitated the sale of a business involved in import and distribution.

It was a well-known, independent brand that had been established for well over 50 years and had solid bottom-line performance.

Unfortunately, when it came time to exit the business, it soon became apparent there was too much inventory (stock on hand).

We negotiated a price for the goodwill, plant and equipment etc, based on a multiple of Business Maintainable Earnings (BME), which is essentially the cash flow of the business.

Then it was time to address the stock value.

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Topics: Business Value, Selling your business, Advice, Cash flow, Inventory, selling a business, Business advisor, JPAbusiness, Parramatta, Orange NSW, cash flow management

5 tips to manage your banking partnership [infographic]

Posted by James Price | JPAbusiness on 04-Mar-2020 02:00:00

A banker is not just a simple supplier to your business – they are a partner in your business.

Their success in lending you money is inextricably linked to your success as a business, so treating them as anything other than a business partner is not doing the opportunity justice.

The following infographic sums up what you can do to give that partnership every chance of success.

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Topics: Advice, Partners, Running your business, infographic, Banking, Business advisor, business management

5 steps to buying or starting your own business [infographic]

Posted by James Price | JPAbusiness on 05-Feb-2020 02:00:00

Owning your own business can be very rewarding, both professionally and personally, but it’s not all beer and skittles!

As a business owner you take on a lot of risk, you rarely get a mental break – especially in the early days – and you may have to get used to unpredictable earnings.

If you’re considering buying or starting your own business, take a look at the following infographic for some first steps to guide your early decision making. 

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Topics: Buying a business, Advice, infographic, Starting a business, Business advisor, Parramatta, Orange NSW

4 marketing tips when selling a business [video]

Posted by James Price | JPAbusiness on 22-Jan-2020 02:00:00

No one knows your business like you do and, whether you choose to sell it yourself or work with a broker or advisor, you will play a key role in the marketing process.

Your extensive knowledge of the business needs to be translated into marketing material that will inform potential purchasers of the opportunity your business presents.

The following video contains 4 key tips for marketing a business for sale: what they are and how they can contribute to the ultimate success of a sale.

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Topics: Selling your business, Advice, Brand and marketing, Video, selling a business, Business advisor, Parramatta, Orange NSW, marketing

3 key questions to ask when valuing a business [video]

Posted by James Price | JPAbusiness on 15-Jan-2020 02:00:00

Business valuation is not an exact science and nor is it a simple science. However there are some factors you should always consider when assessing a business’ value.

The following video lists 3 key factors to consider when valuing a business and 3 questions you need to ask to uncover this important information.

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Topics: Business Value, Advice, BME, Video, business advice, Business valuation, Business advisor, Business maintainable earnings, Parramatta, Orange 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. 





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