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, business advice, selling a business, cash flow management, stock control, business sale advice, business selling advice

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 sale advice, business selling advice

Top 10 do's and don'ts of business selling – No.10

Posted by James Price | JPAbusiness on 12-Jul-2017 05:47:00

Here is the final tip in our 10 do's and don'ts of business selling. We gained these insights from hard-won experience and observing what can happen in the business selling market!

10. DON’T – Choose the wrong advisor to assist you with your sale

Do – Engage an experienced sales team

If you decide you need an advisor to help you with a business sale, then I suggest you choose someone with experience who knows and understands your business, or businesses like yours, and who you feel can represent your business in a professional light with potential purchasers.

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Topics: Selling your business, Advice, business advice, selling a business, business sale, business sale advice, business selling advice

 
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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