When should I have my business valued?

Posted by James Price | JPAbusiness on 16-Jan-2019 02:00:00

People typically request a valuation of their business in reaction to an event, for example:

  • they’ve decided they want to sell or exit, so they want to know how much the business is worth;
  • they want to restructure the legal entities in the business and need a valuation for tax and/or statutory purposes;
  • there is a relationship breakdown between joint shareholders or spouses and they need to transfer or split the business so one can sell to the other, so they need to know its value;
  • they’re seeking finance and the finance company or bank has requested a valuation of the business.

Those are event-orientated valuation requirements and we certainly offer that service on a regular basis.

However, we also advocate using valuation as a proactive management and investment tool and we’ve been very excited to provide this service to more and more business owners over the past 12 months.

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Topics: Business valuation, budgeting, business management, business advice, Business advisor, valuing a business

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

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

Succession war stories: the good, the bad and the average

Posted by James Price | JPAbusiness on 19-Dec-2018 02:00:00

Succession stories from the corporate world

The following business succession examples come from the international corporate world and have been well reported in business advice and human resources articles and blogs.

They provide some valuable lessons on how to – and how not to – plan for succession.

HP – The bad

Over the course of 15 years HP (Hewlett Packard) had seven different CEOs – each horridly replaced with the next.

At its core, the problem was that the incoming CEOs were not adequately educated on the innermost workings that made HP successful. They came in with sweeping changes that contradicted the soul of HP.

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Topics: Succession planning, business advice, Business advisor, JPAbusiness, business management

What are some 'rules of thumb' for valuing businesses?

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

When it comes to valuing businesses – listed or private – you will often hear people refer to ‘rules of thumb’. Some will say the value of a business is:

  • ‘x times its revenue’ or
  • ‘x multiples of its earnings’ or
  • ‘a function of its after-tax profit’ or
  • ‘a function of its gross profit’ and so on.

These ‘rules of thumb’ tend to be industry based i.e. “a business in Industry A is worth ‘x’ times multiple of earnings” while “a business in Industry B is worth ‘x’ times revenue”. (I won’t repeat the actual ‘rules’ I’ve heard – I don’t want to encourage anyone to use them!) 

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Topics: Business valuation, business valuer, Business Value, business advice, Business advisor, JPAbusiness

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: Video, Advice, BME, Business Value, Business maintainable earnings, business advice, Business advisor, Business valuation

Why I went to California, and why you should too*

Posted by James Price | JPAbusiness on 05-Dec-2018 02:00:00

*You don’t actually have to go to California, but I do recommend taking advantage of professional development opportunities whenever possible. 

A senior member of the team and I travelled to California recently to attend the Advanced Business Valuation and International Appraisers Conference. The conference was hosted by the American Society of Appraisers, an international organisation representing all appraisal disciplines, including business valuation.

It was a jam-packed three days of hearing from expert industry practitioners and thought-leaders on diverse topics, including:

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Topics: Business advisor, business advice, professional development, Training and Professional Development, staff management, business development

How long does it take to buy a business?

Posted by James Price | JPAbusiness on 21-Nov-2018 02:00:00

We provide a range of services to business buying clients, from initial review and feasibility, through to business valuations, a preliminary assessment of the strength of the opportunity, full due diligence services if the party has lodged a non-binding offer and is seriously interested in the business, through to merger and acquisition facilitation services.

We have helped some clients find the right business within six months while, for other clients, it has taken over three years.

The key phrase is ‘the right business’; I’m sure we could speed up the process if our aim was just to help our clients buy ‘a’ business, but that’s not our job.

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Topics: Buying a business, business advice, Business advisor, Business valuation, vendor due diligence

JPAbusiness seeking skilled individuals to grow our team

Posted by James Price | JPAbusiness on 07-Nov-2018 02:00:00

JPAbusiness is on the lookout for outstanding individuals to help us grow our valuation, business broking and business advisory services.

We are looking to fill three vacancies with motivated, inquisitive and genuinely client-focused team members.

The positions are:

  • Business analyst – Management consulting and valuation professional
  • Transaction advisor/business broker
  • Business analyst – Graduate position

The positions will all be based in our corporate office in the beautiful and vibrant regional city of Orange, NSW. 

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Topics: positions vacant, staff recruitment, Business advisor, business broker, business valuer, graduate position

 
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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