How to avoid losing customers when buying a business

Posted by James Price | JPAbusiness on 14-Jul-2021 02:00:00

There are a number of risks when buying a business and one of them relates to key customers taking flight in the early stage of the transfer.

In doing your due diligence it’s wise to look at customer concentration risk. Where you have a significant concentration of one or two customers, in particular, you should try and protect against that risk.

Here’s an example of how purchasers can use a ‘hard’ provision to protect against this risk in the final contract:

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Topics: Customers and Clients, Buying a business, Customers, business advice, selling a business, risk management, James Price, JPAbusiness, Parramatta, Central West NSW, business sale, business sale transaction advisor

How to ensure you get good advice when buying a business [case study]

Posted by James Price | JPAbusiness on 19-May-2021 02:00:00

A few years ago we worked on a business sale transaction in which one side had far less robust advice than the other – you can guess which side was which!

Our client – the vendor – was selling a reasonably large, engineering-style business.

The purchaser – while a successful business operator – was not experienced at acquiring businesses and did not appear to have thought deeply about the sort of expertise they would need to advise and guide them.

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Topics: Buying a business, Advice, Case study, business buying, Business advisor, business broker, risk management, James Price, JPAbusiness, Parramatta, client case studies, buy a business, Central West NSW, business buyer

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

Do I need a business advisor? [Client case studies]

Posted by James Price | JPAbusiness on 17-Jul-2019 02:00:00

Whether or not you choose to engage the services of a business advisor is really up to you and your preferred mode of operating your business.

Obviously I believe there is value in seeking independent business advice; I think we’re all better decision makers if we’re able to test our propositions with someone who isn’t directly related to the issue at hand, but has relevant expertise.

In the blog I’m using examples from our own clients to show how independent advice is adding value in their businesses.

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Topics: staff management, business advice, Business advisor, risk management, strategic planning, business basics, Parramatta, Orange NSW, client case studies

How to ensure you pay a fair price when buying a business

Posted by James Price | JPAbusiness on 19-Jun-2019 02:00:00

In our experience, the risks associated with business purchases fall into three categories:

  1. People
  2. Customers, suppliers and market dynamics
  3. The value exchange.

In this blog we’re focusing on the third risk category, the value exchange, and how you can manage that risk.

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Topics: Business Value, Buying a business, business advice, risk management, Parramatta, Orange NSW

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

 
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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