Business owners often seek a business valuation after being prompted to do so by a 'significant event’, for example:
In this video I explain how valuation can actually be used as an ongoing management tool, adding value while you’re running the business and also potentially boosting value on exit.
Topics: Business Value, Valuations, Exiting your business, Video, Business advisor, business management, growth strategies, James Price, JPAbusiness, Parramatta
As a business owner or manager, there are a number of 'levers' you need to control to successfully manage working capital and drive a successful, cash-generating business.
As our Working Capital Checklist shows, those levers fall into two buckets: current assets and current liabilities.
You can use the free checklist to assist you in achieving a firm control of your working capital levers and cash position, so your business proposition is not hampered by poor cash flow.
Topics: Business Value, Selling your business, Cash flow, Working capital, Exiting your business, Template, Checklist, business management, COVID-19, business strategy, coronavirus
Goodwill is an intangible value associated with a business.
As we have explained in other eBooks and blogs, 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.
Topics: Business Value, Selling your business, Advice, Business transfer, BME, Due diligence, Exiting your business, Business maintainable earnings, James Price, JPAbusiness, goodwill, Parramatta, Orange NSW
As a business owner or manager, there are a number of 'levers' you need to control to successfully manage working capital and drive a successful, cash-generating business.
Topics: Business Value, Selling your business, Cash flow, Working capital, Exiting your business, Checklist
After the process of finding a buyer and selling your business, there is a good chance you’ll still need to turn up to work for a period of time.
Conditions of a sales agreement often include requirements for continuation of service for a transitional period. This involves working alongside the new owner for a set period to share information and knowledge of the business.
Topics: Selling your business, Advice, Family business, Exiting your business, Business advisor, cartoon, Parramatta, Orange NSW
Seeking to exit a business just a few weeks or months after making the decision to do so, is not the best way to optimise value in a business sale.
As I explain in this video, it’s much wiser to incorporate exit and succession plans into your ongoing business planning and prepare for a sale over a period of several years.
Topics: Business Value, Selling your business, Exiting your business, Video, business advice, selling a business, Business advisor, Parramatta, Orange NSW
The JPAbusiness Strategic Value Checklist has been created to help you drive positive strategic value in your business.
Don't wait until it's time to sell or exit to work on the business characteristics listed in the checklist. While strategic value drivers are not always quantifiable (as we discussed in our free eBook Strategic Value in a Business Sale) they’re not fairy dust either. They can’t be created with a magic wand overnight!
Strategic value drivers result from real actions you can take to enhance year-by-year earnings in your business, and also potentially assist you to capture extra value on exit of your business.
Topics: Business Value, Selling your business, Advice, Valuations, Exiting your business, Checklist, Business advisor
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.
Topics: Business Value, Selling your business, Advice, Business transfer, Due diligence, Exiting your business, goodwill
At JPAbusiness we believe five years is a good benchmark to be planning for succession and exit.
In this video I use the example of a JPAbusiness client to show how this forward planning can place your business in the best position for a successful exit, whether that exit comes in the form of a planned sale process or an unexpected purchase offer.
Topics: Advice, Exiting your business, Video, Succession planning
Ideally, a business will be set up for sale from the moment it begins operating.
After all, you never know when someone may approach you about buying your business, or when unforeseen circumstances may force you to sell.
A previous JPAbusiness client is a good example of why it pays to be prepared.
Topics: Selling your business, Advice, Family business, Exiting your business, Business advisor, cartoon
