What is goodwill and do business buyers still pay for it?

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

Goodwill is an intangible value associated with a business.

As we have explained in other eBooks and blogs, stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market.

Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

Continue reading...

Topics: Business Value, Selling your business, Advice, Business transfer, BME, Due diligence, Exiting your business, Business maintainable earnings, James Price, JPAbusiness, goodwill, Parramatta, Orange NSW

How NOT to manage a business ownership transfer

Posted by James Price | JPAbusiness on 10-Jul-2019 02:00:00

Value can be destroyed overnight if a business sale transfer goes wrong.

A few years back we published an eBook and checklist designed to help people manage this transfer process, after an experience I had while conducting due diligence for a client.

My client was in the process of purchasing a building products business in Queensland, which sold to both the trade market and retail customers.

Contracts had been exchanged and a deposit paid by my client, but the sale was subject to the outcome of my due diligence.

Continue reading...

Topics: Buying a business, Free download, Business transfer, Checklist, business advice, selling a business, JPAbusiness, Parramatta, Orange NSW

3 ingredients needed for a successful business sale or purchase

Posted by James Price | JPAbusiness on 24-Apr-2019 02:00:00


Based on our years of business broking experience – and successfully making a match between many buyers and sellers – answering ‘yes’ to the following three questions should set 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?
Continue reading...

Topics: Buying a business, Business transfer, business advice, selling a business, Business advisor, business broker, Parramatta, Orange NSW

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.
Continue reading...

Topics: Buying a business, Selling your business, Business transfer, business advice, Business advisor, Parramatta, Orange NSW

Do business buyers still pay for goodwill?

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

Goodwill is an intangible value associated with a business and is based on the business' potential to provide a future flow of earnings beyond the current owner. 

Stock, plant and equipment, and other fixed assets, are tangible items that can be relatively easily valued on a market. Goodwill is intangible; essentially it is the risk premium around how and what business maintainable earnings (BME) will be delivered into the future if the business is acquired by someone else and run in basically the same way.

Continue reading...

Topics: Business Value, Selling your business, Advice, Business transfer, Due diligence, Exiting your business, goodwill

How to transfer business ownership [cheat sheet]

Posted by James Price | JPAbusiness on 17-Oct-2018 02:00:00

There are many issues vendors need to deal with in the lead-up to a business sale settlement, from staff contracts and entitlements, right through to P&E roadworthiness certificates.

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

Continue reading...

Topics: Buying a business, Selling your business, Advice, Business transfer, cheat sheet, selling a business

How to choose a business broker [infographic]

Posted by James Price | JPAbusiness on 23-Aug-2017 04:00:00

If you’re considering selling your business and have decided against self-marketing, how do you evaluate the abilities of all the different brokers out there?

There are some obvious attributes you need to look for – experience is a big one – but your own attitude is actually a critical factor.

If you think of a broker as simply someone who takes commission for selling your business, you’re not likely to get value from the relationship.

Working with an advisor or broker can be a partnership, if you’re prepared to think of it as one and you choose the right partner!

Continue reading...

Topics: Selling your business, Advice, Business transfer, Partners

How to address legal and other business transfer issues

Posted by James Price | JPAbusiness on 28-Oct-2016 04:13:00

In this blog we examine the final two categories in the JPAbusiness Business Transfer ChecklistLegal and Other.

Legal

There are many legal issues to consider in a business transaction process and, as we have often said in our eBooks and blogs, engaging a solicitor with experience in business sales is critical.

Continue reading...

Topics: Buying a business, Selling your business, Advice, Legal, Business transfer, Exiting your 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. 
 
 

 

JPAbusiness

Topic

more

Recent Posts