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?

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Topics: Buying a business, Business transfer, business advice, selling a business, Business advisor, business broker, James Price, JPAbusiness, Parramatta, Central West NSW, business sale, transaction advice, business sale transaction advisor, selling my business

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 to avoid losing key staff when buying a business

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

There are some common 'people-related' risks associated with business purchases, particularly in small to middle-sized businesses that are substantially dependent on an owner or a few senior employees for their success.

Two things can happen if those personnel aren’t retained in the business in an active way:

  • the business’ relationships with customers and suppliers may deteriorate; and
  • the employees’ know-how and corporate knowledge will be lost.

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Topics: Buying a business, Business transfer, staff management, business advice, Business advisor, business management, James Price, JPAbusiness, Parramatta, Central West NSW, business transaction advisor, human resources

What’s happening in the business transaction market

Posted by James Price | JPAbusiness on 24-Jun-2020 02:00:00

Taking a look at JPAbusiness’ website analytics this week, I noted that our Business Transfer Checklist has been a popular download over the past few months.

It got me thinking about the state of the business transaction market and the fact some may be surprised to hear that business sales are still going on during such an uncertain time.

I know from our contact with solicitors that sales and acquisitions, and legal services relating to these, have certainly declined since COVID-19 restrictions came about.

However, from what I’m seeing on the ground, transactions that are still happening – or being planned or contemplated – are being driven by a range of factors, including the following:

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Topics: Buying a business, Business transfer, business advice, selling a business, Parramatta, COVID-19, coronavirus, Central West NSW, business news

How to transfer business ownership (video)

Posted by James Price | JPAbusiness on 04-Mar-2020 02:00:00

There are many important issues a vendor needs to deal with in the transfer process leading up to a business sale settlement.

The last thing anyone wants is a handover whereby business performance is negatively impacted by transfer issues not planned out ahead of time and dealt with appropriately. These issues may include:

  • staff entitlements and employment contracts
  • managing key customer and supplier relationships and communication
  • transfer of registrations and insurances on P&E
  • work in progress
  • final stocktake
  • premises lease transfer.
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Topics: Business transfer

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.

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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.

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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.
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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

 
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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