5 tools to help seal the deal when selling a business [cheat sheet]

Posted by James Price | JPAbusiness on 20-Mar-2019 02:00:00

Over the past few years we’ve produced a number of resources to help our readers and clients navigate the business sale journey.

For the record, Step 1 of selling is always the same: Ask yourself ‘what is my objective in selling?’ Why you are selling needs to be very clear in your mind, and the minds of your spouse, shareholders, business partners and so on, in order to set yourself up for a successful sale.

At the other end of the selling process is ‘sealing the deal’ and this is not without its challenges. The cheat sheet below introduces some of the tools we use to manage information flows during the detailed due diligence process and, ultimately, seal the deal.

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Topics: Selling your business, Due diligence, cheat sheet, business advice, selling a business, Business advisor, Parramatta, Orange NSW

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

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.

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Topics: Business Value, Selling your business, Advice, Business transfer, Due diligence, Exiting your business, goodwill

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

How to manage customer and supplier risk when buying a business

Posted by James Price | JPAbusiness on 16-May-2018 02:00:00

Last month I wrote a blog about how to avoid losing key staff when buying a business.

In this blog I'm sharing advice on how to manage another critical risk when buying a business: customers and suppliers.

This risk relates to key customers and/or suppliers taking flight from the business you’ve purchased in the early stage of the transfer.

In doing your due diligence it’s very wise to look at both supplier and customer concentration risk.

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Topics: Buying a business, Customers, Due diligence, Suppliers, business advice, risk management

What is due diligence and do I need to do it? [video]

Posted by James Price | JPAbusiness on 28-Feb-2018 02:00:00

Due diligence is a critical component of buying a business.

As we always say, it's important to discover any skeletons in the closet before it's too late!

In this video I've shared my 3 top tips for conducting due diligence on a potential business purchase.

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

3 components of due diligence [infographic]

Posted by James Price | JPAbusiness on 11-Oct-2017 04:00:00

A successful business purchase is about doing your homework up front and making sure you are well prepared. 

In business circles this is called ‘doing your due diligence'

Due diligence is not just for corporate players buying blue chip, listed companies – it’s just as important in the small and mid-cap business market.

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Topics: Buying a business, Selling your business, Advice, Due diligence, infographic

Don't blow your redundancy payout on an overpriced business [blog]

Posted by James Price | JPAbusiness on 09-Aug-2017 05:05:00

Buying a business is a risky way to spend a redundancy payout – true or false?

Answer: True and false, depending on how you go about it.

Often we come across clients who have been made redundant after a long period in an employed situation. 

They are at an age where they still have plenty of potential to make a meaningful contribution in another employed role, or in owning a business. In fact, some of the expertise they have built up over their career is very appropriate for owning and running their own business.

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Topics: Buying a business, Advice, Due diligence

Download our Due Diligence Checklist [free template]

Posted by James Price | JPAbusiness on 19-Jul-2017 01:00:00

Due diligence is a critical component of a successful business purchase – and it's also a complex one.

We have created the JPAbusiness Due Diligence Checklist to help buyers:

  • conduct financial and commercial due diligence
  • understand the basic requirements of legal due diligence
  • recognise which documents you need to request from sellers and check them off as they are received.
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Topics: Buying a business, Advice, Due diligence

 
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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