How long does it take to buy a business? (Video)

Posted by James Price | JPAbusiness on 14-Aug-2019 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, Video, business advice, Business valuation, Business advisor, vendor due diligence, 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

Follow our 10-step business buying process [infographic]

Posted by James Price | JPAbusiness on 03-Jul-2019 02:00:00

 

Step 1: Imagine the process of assessing different businesses for sale as a funnel

The top of the funnel is wide and has a screen which sifts out businesses which don’t meet your requirements.

These requirements may relate to:

  • Geography
  • Size and turnover
  • Earnings
  • Price
  • Product or service
  • Customer base, etc.

Once the various sale opportunities have been ‘sifted’ you are left with the select few businesses which meet your requirements. 

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Topics: Buying a business, Free download, infographic, business advice, Business advisor, James Price, business buying funnel, Parramatta, Orange NSW

Do I need a broker or advisor to buy a business?

Posted by James Price | JPAbusiness on 03-Jul-2019 02:00:00

I strongly advise anyone looking to make a substantial investment in a business to consider independent external advice, whether that comes from a business broker, business advisor or accountant, or another specialist.

That advice might be in the form of:

  • providing a sounding board as you determine exactly what your own aims are in buying a business
  • objective advice on whether the business or businesses you’re considering actually meet those objectives
  • providing an independent view of the value of the business you’re looking to buy
  • assisting you in the purchase negotiation process
  • conducting the due diligence process.

However, this is where my answer gets a little tricky, because not all brokers have the same level of experience, and some offer a form of service I don’t endorse.

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Topics: Buying a business, business advice, Business advisor, business broker, JPAbusiness, business basics, Parramatta, Orange NSW

How to ensure you pay a fair price when buying a business

Posted by James Price | JPAbusiness on 19-Jun-2019 02:00:00

In our experience, the risks associated with business purchases fall into three categories:

  1. People
  2. Customers, suppliers and market dynamics
  3. The value exchange.

In this blog we’re focusing on the third risk category, the value exchange, and how you can manage that risk.

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Topics: Business Value, Buying a business, business advice, risk management, Parramatta, Orange NSW

Find the right business with our Business Buyer's Checklist

Posted by James Price | JPAbusiness on 19-Jun-2019 02:00:00

Buying a business is not an investment decision to be rushed into or made lightly.

For those of you considering buying a business, we have created the Business Buyer's Checklist.

The checklist contains 14 questions designed to:

  • ensure you have a clear purchase objective 
  • work out whether identified business opportunities are a good match for your skills and interests
  • prompt you to take necessary steps regarding market appraisal, due diligence and financing.
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Topics: Buying a business, Template, Checklist, business advice, business buying, Business advisor, Parramatta, Orange NSW

How to keep key staff when buying a business

Posted by James Price | JPAbusiness on 29-May-2019 02:00:00

In our experience, the risks associated with business purchases fall into three categories:

  1. People
  2. Customers, suppliers and market dynamics
  3. The value exchange.

In this blog we're examining how to manage the 'people risks' of a purchase.

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Topics: Buying a business, staff management, business advice, Business advisor, business management, Parramatta, Orange NSW

Franchise advice as parliamentary report calls for sector overhaul

Posted by James Price | JPAbusiness on 15-May-2019 02:00:00

When it comes to franchising, our message is consistent: get robust, independent advice before you buy a franchise (or any business, for that matter!)

The recent release of a damning federal parliamentary report into Australia’s franchise sector has reinforced the importance of this message.

The parliamentary inquiry into ‘Fairness in Franchising’ recommended an overhaul of the industry's regulatory framework, stating that it had “manifestly failed to deter systemic poor conduct and exploitative behaviour”. It said the existing rules had “entrenched the power imbalance” favouring franchisors.

However the report also acknowledged there are good franchise systems that “operate to the mutual benefit of the franchisor and their franchisees”.

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Topics: Buying a business, Franchises, Video, business advice, buying a franchise, vendor due diligence

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

 
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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