How to value a business [video]

Posted by James Price | JPAbusiness on 22-Dec-2021 06:00:00

People are often critical of business valuation – and sometimes I’m one of them – because it’s a very theoretical process.

In fact, some cynically regard it as hocus-pocus: some science, some gut feel, coupled with a bit of rationale.

It’s true that business valuation is not an exact science, but good valuers base their valuations on empirical evidence and robust assessment, underpinned by regular engagement in the market.

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Topics: Business Value, Video, Business valuation, business valuer

How to use valuation as a management tool [case study]

Posted by James Price | JPAbusiness on 25-Aug-2021 02:00:00

Most business owners only seek a business valuation after being prompted to do so by a significant ‘event’, for example family break-up, retirement, need for business restructuring, bank lending requirement, purchase offer and so on.

My experience indicates the opposite course would be better: valuation should be considered a management tool and be done before, and separate from, such business and emotive life events.

The following case study shows how an independent valuation, carried out early, would have made life a whole lot easier for one of my clients.

Instead this client found themselves in a credit squeeze with little understanding of the true value of their business to potential financiers and the drivers that really matter to external parties.

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Topics: Business Value, Valuations, Case study, Business valuation, business management, client case studies

Why do I need a ‘brand identity’ and how do I develop one?

Posted by James Price | JPAbusiness on 11-Aug-2021 02:00:00

This blog comes from one of our most popular eBooks: Brand and Corporate Identity for Small to Mid-Sized Businesses.

The eBook was written with business branding experts Richard Amos and Mike Wilkinson.

What’s in a brand?

Comments by Richard Amos and Mike Wilkinson

We often talk about brand as a relationship, or a connection, between an organisation and its customers – it is the connection your business has with your customers’ minds.

A brand is the sum of all you say and do in relation to your products and services, plus consumers’ personal experiences with these.

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Topics: Business Planning, Brand and marketing, Business valuation, brand identity, brand strategy, marketing, branding, brand plan, brand values

Do I need a valuation before selling a business? [case study]

Posted by James Price | JPAbusiness on 30-Jun-2021 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. 

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Topics: Business Value, Case study, selling a business, Business valuation, client case studies, transaction advice, selling my business

Don't let over-reliance on key personnel erode business value [video]

Posted by James Price | JPAbusiness on 31-Mar-2021 02:00:00

Many businesses, particularly small to mid-sized businesses, rely heavily on one or two key individuals for the business to operate.

These individuals are often the business owners and they may be reluctant to delegate control and decision making for a variety of reasons.

Whatever those reasons, the result is centralised decision making, knowledge and experience, which are not easily transferable in a business sale.

Ultimately, of course, that impacts business value – and not in a good way!

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Topics: Valuations, Exiting your business, Template, Video, Succession planning, Business valuation, risk management, succession, business succession, business value drivers

5 tips for business buyers [video]

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

The following video features 5 tips that will help you take a planned and measured approach to what may well be one of the biggest financial investments of your life.

They're each important in their own way, but I must admit Tip 2 – 'Have passion for the opportunity' – is a key one for me.

Owning a business can be difficult at times, but it's easier to withstand those challenges if you have a 'fire in your belly' for what you do.

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Topics: Buying a business, Business Planning, Video, Business valuation, valuing a business, business value drivers

How to value your own business

Posted by James Price | JPAbusiness on 17-Feb-2021 02:00:00

I had a chat with a prospective client the other day – a young guy in his mid-20s, with a business partner – who has embarked on starting a technology and communications business from scratch after graduating from university.

We were talking about a meeting I had had the previous day with a business owner who had started their business 30-plus years ago, and who is now aged in their 60s.

I recalled how I met up with this business owner to talk about sale, succession and business value, and, unfortunately, my assessment was that their wholesale industrial products distribution business was going to be very hard to ‘sell for value’ because of various factors.

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Topics: Business Value, Business valuation, business management, valuing a business, business value drivers

3 questions to ask when valuing a business [infographic]

Posted by James Price | JPAbusiness on 09-Dec-2020 02:00:00

Business valuation is not an exact science and nor is it a simple science. However there are some factors that should always be considered when assessing a business’ value.

They are:

  • repeatability of current earnings
  • availability of information on the business’ performance and business model
  • point of difference and competitive advantage.

We've created the following infographic to help you get started on assessing the value of a potential purchase opportunity.

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Topics: Business Value, BME, infographic, Business valuation, Business maintainable earnings, COVID-19, coronavirus

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 valuation, vendor due diligence, business buying funnel, business buyer

Do I need a valuation before selling a business? [video]

Posted by James Price | JPAbusiness on 26-Aug-2020 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 ‘yes’: we always recommend clients have their businesses independently and professionally valued before they invest time and money in a sale process.

In this video I explain how our first experience of helping a client sell their business – combined with our many years of subsequent experience – has shaped this philosophy regarding valuation and its role in a successful sale process.

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Topics: Business Value, Case study, Video, selling a business, Business valuation, Business selling, client case studies

 
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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