What to include in your shareholders’ agreement [checklist]

Posted by James Price | JPAbusiness on 06-Mar-2019 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, Checklist, business advice, shareholders agreement

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

Posted by James Price | JPAbusiness on 27-Feb-2019 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 to use our Strategic Value Checklist to build your business value

Posted by James Price | JPAbusiness on 23-Jan-2019 02:00:00

The JPAbusiness Strategic Value Checklist has been created to help you drive positive strategic value in your business.

Don't wait until it's time to sell or exit to work on the business characteristics listed in the checklist. While strategic value drivers are not always quantifiable (as we discussed in our free eBook Strategic Value in a Business Sale) they’re not fairy dust either. They can’t be created with a magic wand overnight!

Strategic value drivers result from real actions you can take to enhance year-by-year earnings in your business, and also potentially assist you to capture extra value on exit of your business.

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Topics: Business Value, Selling your business, Advice, Valuations, Exiting your business, Checklist, Business advisor

How to put a price on ‘strategic value’ when buying

Posted by James Price | JPAbusiness on 23-Jan-2019 02:00:00

One way of quantifying a business’ strategic value, at least to some degree, is to consider the ‘buy versus build’ scenario.

Ask yourself: ‘If I was to buy this business, what additional value over and above the fair market value would I get and could I achieve that same value simply by growing my own business?’

Often as business valuers we will determine a fair market value for a client’s business and then, under a separate and subsequent engagement, be involved in selling that business.

In general we find that for every 10 people – businesses or investors – who are interested in purchasing the business, about three of those 10 are already operating in the same market.

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Topics: Business Value, Buying a business, Advice, strategic value, Business advisor, valuing a business

14 tips for controlling cash flow [cheat sheet]

Posted by James Price | JPAbusiness on 09-Jan-2019 02:00:00

Cash flow is a critical part of the operation of a business.

If your business were a human body then cash flow would be the system of veins and arteries and the blood that runs through them: it's essential for keeping the body/business alive, active and functioning.

This cheat sheet contains 14 of our top tips for managing your cash flow. 

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Topics: Advice, Cash flow, Working capital, Running your business, cheat sheet

How to create an annual business plan

Posted by James Price | JPAbusiness on 09-Jan-2019 02:00:00

You can’t plan for every eventuality, but you can plan to withstand shocks. Having a business plan and following our 3-Step Annual Business Plan Process will help you make your business as robust as possible, should such a shock occur.

Planning is about influencing the things you can influence, while taking account of the things you can’t. The latter are risks or opportunities that may or may never eventuate.

By changing the things you can change, you can position yourself to take advantage of opportunities should they arise, or mitigate risks that might flow.

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Topics: Advice, Business Planning, Running your business, Template, Business advisor, annual business plan

How to sort genuine buyers from tyre kickers when selling a business

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

When selling your business, it’s important that you value the information you have put together on the business and don’t just share it with anyone.

I would advise working with a broker or advisor who is sensitive about how they share your information and who actively uses a prequalification process in dealing with potential purchasers.

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Topics: Selling your business, Advice, selling a business, Business advisor, prequalifying buyers

How to drive success with employee share ownership

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

Share ownership is often considered by private mid-cap and small business firms as a way to have a more meaningful relationship with key members of the team. 

Basically, employee shareholding arrangements involve applying mechanisms to enable key personnel to share in the earnings, performance and direction of your business.

Providing employees with an opportunity to share in your business is seen as a way to motivate their performance and engagement; to help them see their work as more than just a job – it’s an interesting idea.

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Topics: Employment and recruitment, Advice, Staff, Running your business, Business advisor, staff share plans

Do business buyers still pay for goodwill?

Posted by James Price | JPAbusiness on 12-Dec-2018 02:00:00

Goodwill is an intangible value associated with a business and is based on the business' potential to provide a future flow of earnings beyond the current owner. 

Stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market. Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

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Topics: Business Value, Selling your business, Advice, Business transfer, Due diligence, Exiting your business, goodwill

3 questions to ask when valuing a business [video]

Posted by James Price | JPAbusiness on 05-Dec-2018 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

 
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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