How to use our Buying a Business Planning Sheet [template]

Posted by James Price | JPAbusiness on 13-Feb-2019 02:00:00

There are plenty of good businesses out there, but the key to a successful business purchase is finding a business that will be ‘good’ for you.

Our Buying a Business Planning Sheet is designed to help you find a business that is the right fit for your requirements and risk profile.

When assessing different businesses, the planning sheet prompts you to consider 15 questions, including:

  • Why will you succeed in this business?
  • How does the asking price compare to a market appraisal of recent sales and market trends?
  • Do you fully understand the requirements of the lease relating to your potential business purchase?

If you are considering buying a business, download the free template and work through the questions as a way of bringing some rigour and structure to your preliminary planning.

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Topics: Buying a business, business advice, Business valuation, valuing a business, Template

Western Sydney new frontier for JPAbusiness

Posted by James Price | JPAbusiness on 13-Feb-2019 02:00:00

The JPAbusiness team is excited to announce that we have opened an office in Parramatta – the Western Sydney hub poised to become Sydney’s ‘second CBD’.

The Parramatta team will be led by Valuation Advisor Alex Dzang and will work closely with our Orange office.

Establishing a base in Sydney has been a natural progression for JPAbusiness, as we have experienced increasing interest from business clients across the Sydney basin. And with Western Sydney, in many respects, the growing heart of the Sydney metropolitan area – albeit still with strong links to country NSW – Parramatta was the logical choice.

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Topics: JPAbusiness, Orange NSW, Parramatta, Business advisor, Valuations, Buying a business

What does 'due diligence' mean when buying a business?

Posted by James Price | JPAbusiness on 06-Feb-2019 02:00:00

Welcome to our latest ‘Business Basics’ blog in which we answer the question: What does ‘due diligence’ mean when buying a business?

In a nutshell, due diligence is defined as ‘the process of acquiring objective and reliable information on a … company as required, especially before a commercial acquisition’ [Macquarie Dictionary].

At JPAbusiness we regularly undertake due diligence for business-buying clients. The process involves checking and verifying information relating to the basic operations and performance of the business our client is considering buying.

Our role is to identify risks and issues, plus any material differences between what has been represented in information previously provided on the business, and what we identify in the due diligence process.

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Topics: Due diligence, Buying a business, business advice, business basics

How to put a price on ‘strategic value’ when buying

Posted by James Price | JPAbusiness on 23-Jan-2019 02:00:00

One way of quantifying a business’ strategic value, at least to some degree, is to consider the ‘buy versus build’ scenario.

Ask yourself: ‘If I was to buy this business, what additional value over and above the fair market value would I get and could I achieve that same value simply by growing my own business?’

Often as business valuers we will determine a fair market value for a client’s business and then, under a separate and subsequent engagement, be involved in selling that business.

In general we find that for every 10 people – businesses or investors – who are interested in purchasing the business, about three of those 10 are already operating in the same market.

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Topics: Business Value, Advice, strategic value, Buying a business, valuing a business, Business advisor

How long does it take to buy a business?

Posted by James Price | JPAbusiness on 21-Nov-2018 02:00:00

We provide a range of services to business buying clients, from initial review and feasibility, through to business valuations, a preliminary assessment of the strength of the opportunity, full due diligence services if the party has lodged a non-binding offer and is seriously interested in the business, through to merger and acquisition facilitation services.

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.

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Topics: Buying a business, business advice, Business advisor, Business valuation, vendor due diligence

How to avoid real estate traps when buying a business [cartoon]

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

Businesses – particularly family businesses – often use real estate assets as part of their wealth generation strategy.

This may lead to situations where the business and real estate assets are interdependent, creating complexities when it comes time to exit and establish a fair market valuation.

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Topics: Family business, Business Value, Selling your business, Buying a business, Starting a business, Advice, Valuations, cartoon

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.

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

5 lessons from a startup

Posted by James Price | JPAbusiness on 03-Oct-2018 02:00:00

I started JPAbusiness about 17 years ago, after spending 10 years in the employed workforce.

I was strongly motivated to create something of my own and I had clear goals of what I wanted to achieve. However, it certainly wasn’t plain sailing, especially at the beginning. 

The following are five things I felt in the first six to 12 months of starting JPAbusiness. I’m sharing them to illustrate that even if you are ‘the right fit’ for business ownership, you shouldn’t expect it to be easy.

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Topics: Skills and knowledge, Starting a business, Buying a business, Advice, business advice, start-up

Should I buy or start a business? [infographic]

Posted by James Price | JPAbusiness on 26-Sep-2018 02:00:00

Many people feel they should ‘aspire to something more’ than being an employee i.e. owning their own business. As I've often said, business ownership is only the right environment for some people, and for many of those it is only the right environment at the right time.

In our eBook, Pros and cons of owning your own business, I told my own story of what it was like to start my business 17 years ago. Despite being highly motivated to create something of my own, and very confident that I 'knew my stuff', it was still very challenging, particularly in the first year.

Do you have the right personal qualities?

There are many factors that contribute to a person’s success in business, but the following four personality types – or personal attributes – often seem to manifest themselves in successful business owners:

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Topics: business advice, Buying a business, running a business, infographic

8 due diligence tips for buying a business [cheat sheet]

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

When buying a business, the due diligence process involves checking and verifying information relating to the basic operations and performance of the business you're interested in.

Due diligence is about identifying risks, issues and any material differences between what has been represented in information provided previously on the business, and what you and your advisor identify in the due diligence process. 

If you know the risks before you jump (buy the business), then you can plan your landing (mitigate and manage the impact) during the business transfer.

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Topics: Due diligence, Buying a business, business advice, business buying, cheat sheet

 
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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