How to achieve a successful business sale or purchase

Posted by James Price | JPAbusiness on 01-Sep-2021 02:00:00

Based on our years of business transaction experience – and successfully making a match between many buyers and sellers – answering ‘yes’ to the following questions is critical to setting you up for a successful business transaction:

        1. Price – Is the price market-related and does it reflect the value a willing buyer, under the circumstances of the sale transaction, will perceive as fair?

        2. Facts – Are the facts on the business or opportunity clear, unambiguous and relevant to the risks, issues and opportunities the risk-taking party will likely perceive in making the purchase? Have these facts been collated and presented in a professional Information Memorandum/Business Profile?

Continue reading...

Topics: Buying a business, Business transfer, selling a business, transaction advice, selling my business, business sale advice

10 pieces of info to share when selling a business

Posted by James Price | JPAbusiness on 02-Jun-2021 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. 

Continue reading...

Topics: Selling your business, infographic, selling a business, business seller, business sale advice

How do earnouts and contingency payments work? [video]

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

If you are considering selling a business at the larger end of the SME market, with a longevity of orders and forward earnings, it’s important to consider the concept of earnouts and contingency payments, because it will come up from interested parties.

It’s also important to recognise that earnouts as part of the purchase price have capital gains tax implications, so expert advice is essential.

Continue reading...

Topics: Buying a business, Capital gains tax, selling a business, seller earnouts, contingency payment, transaction advice, business sale advice, earnouts

Capital gains tax issues to consider when selling a business

Posted by James Price | JPAbusiness on 07-Jul-2020 14:09:13

In 2014 we published an eBook titled Capital Gains Tax – Issues to consider when selling a small to mid-sized business. This eBook drew on extensive experience, including that of our guest contributor Michael Pisani, partner at Chapman Eastway, and remains one of our most popular publications to date.

Given the far-reaching scope of Capital Gains Tax (CGT) and the ever-evolving nature of taxation laws, in 2017 we released Capital Gains Tax 2.0 – Issues to consider when selling your business. The new eBook did not replace the original, but instead complemented it.

Over the past few months, the JPAbusiness team has been reviewing and updating the information in both eBooks, to reflect the most recent changes in Australian tax policy.

Continue reading...

Topics: Selling your business, Capital gains tax, selling a business, seller earnouts, CGT, business sale advice

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.

Continue reading...

Topics: Selling your business, Cash flow, Case study, Inventory, selling a business, client case studies, cash flow management, stock control, business sale advice, business selling advice

Top 10 do’s and don’ts of business selling [infographic]

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

Planning, professional marketing, timing and finding the right match regarding value and terms are just some of the ingredients that go to making a successful business sale.

The following infographic is a distillation of lessons we've learned over many years of advising business sale clients.

Use these tips to help you make the right decisions when preparing your business for sale.

Continue reading...

Topics: Selling your business, infographic, selling a business, business sale 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.

Continue reading...

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

Do I have to get a valuation before selling?

Posted by James Price | JPAbusiness on 17-Apr-2019 02:00:00

The simple answer is ‘no’, you don’t need a valuation to sell a business.

However, in terms of engaging JPAbusiness to sell your business, the answer is a resounding ‘yes’, you do need to get a valuation before you embark on a sale process.

The reason for that is part of our point of difference among business brokers. It’s based on a lesson learned early in the life of JPAbusiness, and backed by years of subsequent experience. 

Continue reading...

Topics: selling a business, Business valuation, transaction advice, selling my business, business sale advice

How long does it take to sell a business?

Posted by James Price | JPAbusiness on 14-Nov-2018 02:00:00

This is always the million-dollar question when clients come to us seeking help to exit their businesses.

I typically indicate to clients that they need to expect a business sale process to take at least six to 12 months.

The fastest we have sold a business from start to finish is actually six weeks. However, we regard that as a record that will probably never be broken, because it was a unique situation where, strategically, the ‘stars aligned’ between the buyer and the seller.

Continue reading...

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

How poor information hurts a business sale [infographic]

Posted by James Price | JPAbusiness on 04-Apr-2018 02:00:00

When selling your 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.

Continue reading...

Topics: Selling your business, infographic, selling a business, Business selling, business sale 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. 
 
 

 

Content not found
JPAbusiness

Topic

more

Recent Posts