JPAbusiness

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, Exiting your business, Business transfer, Due diligence, Advice, 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: Exiting your business, Succession planning, Advice, Video

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, Exiting your business, Advice, Family business, cartoon, Business advisor

Business owners often seek a business valuation after being prompted to do so by a 'significant event’, for example:

• a family break-up
• retirement
• need for business restructuring
• bank lending requirement
• purchase offer
• bringing in a new shareholder or partner, and so on.

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: Valuations, Business Value, Exiting your business, Business advisor, business management, growth strategies

You’ll often hear the internet gurus say ‘content is king’ and that in order to be successful in the online sphere you have to share lots of relevant content.

For some traditional business sellers, online marketing feels like the equivalent of walking around naked in public – you’ve got to show everything!

This presents a real conundrum for business sellers because, as many of our clients know, being in business can involve dealing with commercially sensitive information.

Topics: Selling your business, Online, Digital marketing, Exiting your business, Advice, business advice, business broker, selling a business

Getting a business sale transaction 'over the line' is not about tips and tricks.

Instead it's about efficiently managing the information flow through the detailed due diligence process to ensure all parties are well informed, the negotiating process progresses smoothly, and everyone can feel comfortable with the end result.

A good advisor or broker will successfully manage that interface for you.

In this blog, James shares some of the tools and strategies JPAbusiness employs to manage this final stage of the business sale process. These include:

Topics: Selling your business, Exiting your business, Advice

Seeking to exit a business just a few weeks or months after making the decision to do so, is not the best way to get an optimal value for your business.

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, Exiting your business, Selling your business, Video

Here is part 6 of our 10 do's and don'ts of business selling. We gained these insights from hard-won experience and observing what can happen in the business selling market!

Topics: Advice, Selling your business, Exiting your business

Here is part 5 of our 10 do's and don'ts of business selling. We gained these insights from hard-won experience and observing what can happen in the business selling market!

5. DON’T – Consider the sale of your business simply as a chance to pay off your loans and debts

Do – Sell for the right reasons

Think carefully as a business owner prior to taking your business to market with an advisor or broker, or selling it yourself, as to the reasons and objectives you have for selling.

This helps you create a negotiation framework to determine what an acceptable offer might be.

Topics: Selling your business, Exiting your business, Advice

Here is part 4 of our 10 do's and don'ts of business selling. We gained these insights from hard-won experience and observing what can happen in the business selling market!

4. DON’T – Fail to disclose critical information material to the business performance

Do – Be forthcoming with potential purchasers

In tip Number 1 we talked about credible and robust information and establishing a purchaser’s confidence.

Topics: Selling your business, Exiting your business, Advice