Due diligence warning signs [video]

Posted by James Price | JPAbusiness on 14-Apr-2021 02:00:00

When it comes to buying a business, it’s generally advisable to conduct a thorough due diligence on the purchase opportunity.

Due diligence is designed to identify any material issues which are likely to impact the value proposition of the business opportunity you are considering. It's usually conducted once you've secured a binding position on price a position which may be subject to your detailed due diligence.

Every due diligence is different, and should be treated as such, but – as I outline in this video – there are some warning signs you should watch out for in any due diligence process.

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Topics: Buying a business, Advice, Due diligence, Template, Video, Business advisor, business broker, James Price, small business, JPAbusiness, Parramatta, Central West NSW, business buyer, business transaction advisor, due diligence checklist

How to use the Buying a Franchise Planning Sheet to assess opportunities

Posted by James Price | JPAbusiness on 24-Mar-2021 02:00:00

Buying a franchise may, on the surface, seem like any other business purchase.

However, a franchise is a special type of business in which the brand and business operational model has been systematised.

A franchise may have additional, more complex requirements for a buyer to consider and meet, but they also tend to come with more ongoing support than regular businesses.

We have created the JPAbusiness Buying a Franchise Planning Sheet to help business buyers assess potential franchise opportunities.

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Topics: Buying a business, Free download, Template, Franchises, Business advisor, business broker, buying a franchise, James Price, JPAbusiness, Parramatta, Central West NSW, business sale, business sale transaction advisor, franchising

5 questions for business sellers to help maximise value on exit

Posted by James Price | JPAbusiness on 03-Mar-2021 02:00:00

Q.1 Do I really want to sell my business and, if so, why?

  • Do you want to sell because you’ve had the business for five years and the results have been poor?
  • Do you want to sell because you’re over-exposed to borrowings, your cash flow is tight and you can’t see a way to get ahead?
  • Do you want to sell because it’s time to retire or move on to the next stage of your career?

Your reasons for selling will help you create a negotiation framework to determine what an acceptable offer might be, so it is critical you be honest with yourself when answering this question.

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Topics: Business Value, Selling your business, Advice, Business transfer, selling a business, Business advisor, business broker, James Price, JPAbusiness, Parramatta, Central West NSW, business sale transaction advisor, business transaction advisor

How long will it take to buy a business? [Video]

Posted by James Price | JPAbusiness on 16-Sep-2020 02:00:00

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.

In this video I explain why it's important not to rush into buying a business, and share four tips for managing risk during the business buying process.

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Topics: Buying a business, infographic, Video, business advice, Business valuation, Business advisor, business broker, vendor due diligence, business buying funnel, JPAbusiness, Parramatta, Central West NSW, business buyer, business transaction advisor

Mapping a path to a multi-million-dollar sale [client case study]

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

We recently helped facilitate the sale of a client’s business for twice its assessed value – a value we had independently appraised!

The valuation was based on the business’ sales performance, its recent past earnings, our assessment of the repeatability of those earnings given internal and external business health factors, and the assignment of a multiple of earnings.

So, how did the business owner achieve a sale price that so far outstripped our initial valuation?

The short answer is that he had an open mind and was willing to work with us to explore all options for exit.

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Topics: Selling your business, Exiting your business, strategic value, business advice, Business valuation, Business advisor, Business selling, business broker, James Price, JPAbusiness, Parramatta, Central West NSW, succession, business sale, exit strategy

Why good information is critical when selling a business [infographic]

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

When selling a business, it's important to put yourself in the position of a buyer.

Ask yourself: 'If I was considering buying this business, what would I want – and need – to know in order to make an informed decision about the opportunity?'

As advisors, we understand that good information on a business opportunity is critical to a successful sale.

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Topics: Selling your business, infographic, business advice, Business selling, business broker, Parramatta, Orange NSW, sell a business

5 lessons from selling a client's business [infographic]

Posted by James Price | JPAbusiness on 11-Dec-2019 02:00:00

A few years ago we facilitated a business sale for a long-term client in south-west Victoria. The client operated an industrial services and utilities business that had been operating for over 20 years.

Some facts and figures about the business include:

  • about 20 staff
  • a turnover of around $5 million
  • earnings before interest, tax and depreciation in the order of $650,000 per annum.
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Topics: Selling your business, Advice, infographic, selling a business, Business advisor, business broker, Parramatta, Orange NSW

Do I need a broker or advisor to buy a business?

Posted by James Price | JPAbusiness on 03-Jul-2019 02:00:00

I strongly advise anyone looking to make a substantial investment in a business to consider independent external advice, whether that comes from a business broker, business advisor or accountant, or another specialist.

That advice might be in the form of:

  • providing a sounding board as you determine exactly what your own aims are in buying a business
  • objective advice on whether the business or businesses you’re considering actually meet those objectives
  • providing an independent view of the value of the business you’re looking to buy
  • assisting you in the purchase negotiation process
  • conducting the due diligence process.

However, this is where my answer gets a little tricky, because not all brokers have the same level of experience, and some offer a form of service I don’t endorse.

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Topics: Buying a business, business advice, Business advisor, business broker, JPAbusiness, business basics, Parramatta, Orange NSW

How can a broker add value when selling a business?

Posted by James Price | JPAbusiness on 26-Jun-2019 02:00:00

You don’t need a broker to sell a business, but having a good broker or experienced advisor to assist you can add value at a number of points along the selling process.

In this blog we’re going to examine four elements of selling a business and show how a good broker can provide additional value at those stages:

  1. Determining what the business is worth
  2. Preparing the business for sale
  3. Describing the business opportunity to prospective purchasers
  4. Progressing the sales process.

We've also included a number of client examples to illustrate how this works in practice.

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Topics: selling a business, Business advisor, business broker, valuing a business, business basics, Parramatta, Orange NSW

What to include in a Business Profile when selling [checklist]

Posted by James Price | JPAbusiness on 26-Jun-2019 02:00:00

Prospective business buyers value professional, credible, robust information on a business sale opportunity.

Selling a business is about trying to get someone to share the same, or better, perspective on your business that you have.

Get this information provision right and interested parties can successfully understand and evaluate what you know and value about the business, and then put a fair price on it relative to this type of asset in the marketplace.

Present them with poor quality information and it will reflect sourly on your business.

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Topics: Selling your business, Advice, Checklist, selling a business, business broker, 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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