5 lessons from selling a client's business [infographic]

Posted by James Price | JPAbusiness on 11-Dec-2019 02:00:00

A few years ago we facilitated a business sale for a long-term client in south-west Victoria. The client operated an industrial services and utilities business that had been operating for over 20 years.

Some facts and figures about the business include:

  • about 20 staff
  • a turnover of around $5 million
  • earnings before interest, tax and depreciation in the order of $650,000 per annum.
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Topics: Selling your business, Advice, infographic, selling a business, Business advisor, business broker, Parramatta, Orange NSW

4 tips to maintain or reduce business debt [infographic]

Posted by James Price | JPAbusiness on 11-Dec-2019 02:00:00

The infographic below contains four of our top tips for managing business debt and maintaining a healthy cash flow.

Business owners looking to drive their business forward need to be aware of their capital base and liquidity for working capital and investment purposes. Critical to this is maintaining a strong cash flow.

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Topics: Cash flow, Working capital, infographic, business advice, Business advisor, Parramatta, Orange NSW, managing debt

Don't rush it – 3 questions to consider before buying a business

Posted by James Price | JPAbusiness on 04-Dec-2019 02:00:00

Whether we’re assisting a client to buy a business, providing advice or due diligence, or fielding enquiries on businesses we’re marketing for sale, one of the first things I tell people is that the price of the business should not be their primary concern.

Now that sounds a bit strange, I know, because price is obviously important –  it would be silly to enquire about a business worth $5 million, for example, when you have $500,000 maximum to invest.

But, and I’m very serious about this, I believe you should set the price of the business aside in your initial discussions and investigations, and consider the following questions first:

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Topics: Buying a business, Advice, Business Planning, infographic, Starting a business, Business advisor, Parramatta, Orange NSW

4 questions to ask when buying a franchise [infographic]

Posted by James Price | JPAbusiness on 27-Nov-2019 02:00:00

Buying a franchise may, on the surface, seem exactly the same as buying a business.

Principally they are the same, except with a franchise the brand and business operational model has been systematised.

While the operational and other support mechanisms that come with a franchise are appealing when compared to an independent business, it’s important to consider the additional requirements and costs you may have to meet.

The infographic below contains four key questions for people considering buying a franchise:

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Topics: Buying a business, Due diligence, infographic, Franchises, Starting a business, business advice, buying a franchise, Parramatta, Orange NSW

4 ways to minimise risk when outsourcing [infographic]

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

Many businesses – including my own – have a ‘virtual team’ of service providers who work in concert with our regular team of in-office staff members.

We have created the following infographic based on our experience and that of our clients who also have valuable outsourcing partnerships.

Use these tips to help you enjoy the benefits of outsourcing, while avoiding some of the hazards.  

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Topics: Free download, Advice, Staff, Running your business, infographic, outsourcing, business advice, risk management, Parramatta, Orange NSW

How to think like a buyer when selling your business

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

When business owners come to see us, wanting to sell their business, we often get involved in providing ‘vendor due diligence’.

This basically involves us 'pretending' we're a buyer and has two main components:

1. Understanding what the business is really worth i.e. conducting an independent valuation or market appraisal

2. Understanding how the business appears to a potential purchaser.

That second component is the core part of vendor due diligence and involves looking at the business from a purchaser’s point of view:

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Topics: Selling your business, infographic, selling a business, Business valuation, vendor due diligence, business valuer

Top 10 do’s and don’ts of business selling [infographic]

Posted by James Price | JPAbusiness on 16-Oct-2019 02:00:00

Planning, professional marketing, timing and finding the right match regarding value and terms are just some of the ingredients that go to making a successful business sale.

The following infographic is a distillation of lessons we've learned over many years of advising business sale clients.

Use these tips to help you make the right decisions when preparing your business for sale.

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Topics: Selling your business, Advice, Business Planning, infographic, selling a business

8 tips for conducting due diligence [infographic]

Posted by James Price | JPAbusiness on 09-Oct-2019 02:00:00

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

The over-riding purpose of due diligence is to ensure there are no nasty surprises after you buy a business.

We’ve created the following infographic to share some of our top tips for people embarking on the due diligence process.

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Topics: Buying a business, Due diligence, infographic, business advice, James Price, Parramatta, Orange NSW

How to spot occupational fraud red flags [infographics]

Posted by James Price | JPAbusiness on 09-Oct-2019 02:00:00

A couple of years ago the Australian Financial Review quoted Detective Superintendent Arthur Katsogiannis, then commander of the NSW Police fraud and cybercrime squad, in a story about corporate crime.

Superintendent Katsogiannis said that in 100% of corporate crime investigations he had been involved in, corruption goes hand-in-hand with a “compromised personal life”.

Gambling, drinking, drug taking, living beyond their means and inappropriate sexual conduct were all indicators of a personal life as compromised as the perpetrator’s professional life.

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Topics: infographic, Employee fraud, business advice, James Price, fraud prevention, Parramatta, Orange NSW, managing employees

What determines your Business Maintainable Earnings? [infographic]

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

When determining what a small to mid-sized business is worth, Business Maintainable Earnings (BME) is one of the key concepts the market will consider.

BME reflects the ability of a business to generate earnings into the future.

Remember, as a buyer you don’t want to pay for opportunity you will create in the future; unless there is a strategic element to the purchase, ideally you only want to pay for what has been built up by the vendor.

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Topics: Business Value, Buying a business, infographic, business advice, Business valuation, Business advisor, Business maintainable earnings, James Price, Parramatta, Orange 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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