How to transfer business ownership

Posted by James Price | JPAbusiness on 20-Mar-2019 02:00:00

When buying or selling a business, the last thing you want is a handover whereby the business performance is negatively impacted by transfer issues not planned out ahead of time and dealt with appropriately.

There are several important issues a vendor and, by definition, a purchaser need to consider and deal with in the transfer process leading up to settlement.

There is quite a bit of interplay and overlap between the issues but, for the purposes of this blog, I have separated them into seven categories:

  1. Employees
  2. Financial
  3. Customers
  4. Suppliers
  5. Stock
  6. Legal
  7. Other.
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Topics: Buying a business, Selling your business, Business transfer, business advice, Business advisor, Parramatta, Orange NSW

5 tools to help seal the deal when selling a business [cheat sheet]

Posted by James Price | JPAbusiness on 20-Mar-2019 02:00:00

Over the past few years we’ve produced a number of resources to help our readers and clients navigate the business sale journey.

For the record, Step 1 of selling is always the same: Ask yourself ‘what is my objective in selling?’ Why you are selling needs to be very clear in your mind, and the minds of your spouse, shareholders, business partners and so on, in order to set yourself up for a successful sale.

At the other end of the selling process is ‘sealing the deal’ and this is not without its challenges. The cheat sheet below introduces some of the tools we use to manage information flows during the detailed due diligence process and, ultimately, seal the deal.

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Topics: Selling your business, Due diligence, cheat sheet, business advice, selling a business, Business advisor, Parramatta, Orange NSW

How do I involve staff in an ownership position in my company?

Posted by James Price | JPAbusiness on 13-Mar-2019 02:00:00

There are a number of mechanisms to provide senior and key staff with a level of interest in your business over and above an employee status.

It’s often referred to as giving employees ‘skin in the game’ and it’s about aligning your objectives as a business owner and operator with your key people, so together you can achieve great things within the business.

There are a number of ways to align objectives between the parties, through both ownership and/or incentive arrangements without formal ownership:

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Topics: staff management, business advice, staff share plans, business basics, Parramatta, Orange NSW

How to talk to your family about succession and estate planning

Posted by James Price | JPAbusiness on 13-Mar-2019 02:00:00

When it comes to succession and estate planning, it’s never too early to start thinking – and talking – about it.

However, some business owners prefer not to confront their own mortality and just continue on running their business while avoiding thinking about, or planning for, the inevitable i.e. their ‘exit’. This creates the perfect environment for conflict among those left behind.

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Topics: Succession planning, business advice, Business advisor, Parramatta, Orange NSW, estate planning

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

What should my business be returning for my investment?

Posted by James Price | JPAbusiness on 06-Mar-2019 02:00:00

The business buyers and owners we work with in the SME market tend to target a return on investment in a range from 10 to 40%.

This range is influenced by factors such as:

  • industry prospects
  • competitive dynamics
  • points of difference
  • use of technology
  • delivery capability

...and a myriad of factors relating to the business model and specific enterprise.

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Topics: business advice, valuing a business, business basics, return on investment

What info should I share when selling? [infographic]

Posted by James Price | JPAbusiness on 27-Feb-2019 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

When is a good time to sell or exit your business? [video]

Posted by James Price | JPAbusiness on 20-Feb-2019 02:00:00

 

Seeking to exit a business just a few weeks or months after making the decision to do so, is not the best way to optimise value in a business sale.

As I explain in this video, it’s much wiser to incorporate exit and succession plans into your ongoing business planning and prepare for a sale over a period of several years.

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Topics: Business Value, Selling your business, Exiting your business, Video, business advice, selling a business, Business advisor, Parramatta, Orange NSW

Thinking about selling? Use our Selling a Business Planning Sheet [template]

Posted by James Price | JPAbusiness on 20-Feb-2019 02:00:00

Selling a business is a massive undertaking and not one to be entered into lightly.

We created our free Selling a Business Planning Sheet as a ‘first step’ resource for business owners thinking about selling.

The template contains 20 questions designed to prompt you to undertake the necessary thinking, planning and acting that will ensure you and your business are well prepared for the sale process.

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Topics: Business Value, Template, business advice, selling a business, Business advisor, Parramatta, Orange NSW

How to use our Buying a Business Planning Sheet [template]

Posted by James Price | JPAbusiness on 13-Feb-2019 02:00:00

There are plenty of good businesses out there, but the key to a successful business purchase is finding a business that will be ‘good’ for you.

Our Buying a Business Planning Sheet is designed to help you find a business that is the right fit for your requirements and risk profile.

When assessing different businesses, the planning sheet prompts you to consider 15 questions, including:

  • Why will you succeed in this business?
  • How does the asking price compare to a market appraisal of recent sales and market trends?
  • Do you fully understand the requirements of the lease relating to your potential business purchase?

If you are considering buying a business, download the free template and work through the questions as a way of bringing some rigour and structure to your preliminary planning.

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Topics: Buying a business, Template, business advice, Business valuation, valuing a business

 
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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