How to calculate your Business Maintainable Earnings [infographic]

Posted by James Price | JPAbusiness on 08-Jul-2020 02:00:00

Business Maintainable Earnings (also known as 'Future Maintainable Earnings') reflect the ability of a business to generate earnings into the future.

BME is one of the most important concepts the market will consider when assessing business value – it is particularly critical for determining a business' going-concern value, including the value of goodwill.

The following infographic shows how to take account of abnormal fluctuations in your business’ performance (i.e. normalise) when calculating your BME.

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Topics: Business Value, Valuations, BME, business advice, Business advisor, JPAbusiness, valuing a business, Parramatta, Central West NSW

How to prove goodwill value [templates]

Posted by James Price | JPAbusiness on 01-Jul-2020 02:00:00

Goodwill ­is a key component of business value, alongside factors such as working capital and plant and equipment.

Many people think of goodwill as an ‘intangible’ and therefore its value can’t be proved, but that's not necessarily the case.

Goodwill value relies on being able to prove the sustainability of a business’ earnings going forward.

In this blog we’re going to explain how record-keeping is a critical component of proving that sustainability, and provide some simple templates to get you started.

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Topics: Business Value, contracts, business advice, Business valuation, JPAbusiness, goodwill, Parramatta, Central West NSW, work in progress, WIP, tendering

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

Use our Business Health Check to help plan for the future

Posted by James Price | JPAbusiness on 08-Apr-2020 02:00:00

This blog has been republished in the wake of COVID-19 developments.

Regardless of the impacts of COVID-19, this time of year is usually not a bad period to look to the financial year ahead and review the health of your business, in particular what areas you need to focus on and improve to drive most value.

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Topics: Template, business advice, Business advisor, Business health check, small business, Parramatta, COVID-19, business strategy, coronavirus, Central West NSW

6 tips to help motivate yourself in business [infographic]

Posted by James Price | JPAbusiness on 08-Apr-2020 02:00:00

Motivation in business is about having a certain drive, determination, focus and consistency in the way you go about your business. You also need to feel successful – I don't know anyone who finds repeated failure motivating!

The following infographic features 6 tips to help business owners and managers maximise their motivation.

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Topics: infographic, business advice, Business advisor, staff recruitment, motivation, Parramatta, COVID-19, business strategy, coronavirus, Central West 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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