How NOT to manage a business ownership transfer

Posted by James Price | JPAbusiness on 10-Jul-2019 02:00:00

Value can be destroyed overnight if a business sale transfer goes wrong.

A few years back we published an eBook and checklist designed to help people manage this transfer process, after an experience I had while conducting due diligence for a client.

My client was in the process of purchasing a building products business in Queensland, which sold to both the trade market and retail customers.

Contracts had been exchanged and a deposit paid by my client, but the sale was subject to the outcome of my due diligence.

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Topics: Buying a business, Free download, Business transfer, Checklist, business advice, selling a business, JPAbusiness, Parramatta, Orange NSW

How can a broker add value when selling a business?

Posted by James Price | JPAbusiness on 26-Jun-2019 02:00:00

You don’t need a broker to sell a business, but having a good broker or experienced advisor to assist you can add value at a number of points along the selling process.

In this blog we’re going to examine four elements of selling a business and show how a good broker can provide additional value at those stages:

  1. Determining what the business is worth
  2. Preparing the business for sale
  3. Describing the business opportunity to prospective purchasers
  4. Progressing the sales process.

We've also included a number of client examples to illustrate how this works in practice.

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Topics: selling a business, Business advisor, business broker, valuing a business, business basics, Parramatta, Orange NSW

What to include in a Business Profile when selling [checklist]

Posted by James Price | JPAbusiness on 26-Jun-2019 02:00:00

Prospective business buyers value professional, credible, robust information on a business sale opportunity.

Selling a business is about trying to get someone to share the same, or better, perspective on your business that you have.

Get this information provision right and interested parties can successfully understand and evaluate what you know and value about the business, and then put a fair price on it relative to this type of asset in the marketplace.

Present them with poor quality information and it will reflect sourly on your business.

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Topics: Selling your business, Advice, Checklist, selling a business, business broker, Parramatta, Orange NSW

5 tips for selling a business [infographic]

Posted by James Price | JPAbusiness on 22-May-2019 02:00:00

The infographic below is based on lessons learned during a sale we facilitated for a client.

During the sale process our client showed how listening to market feedback and being responsive and flexible can deliver an acceptable outcome.

As we often say, selling is a dynamic process – it's not a 'set and forget' where you get your valuation, list the business for sale at that price, and away it goes.

In this case, the vendor achieved a satisfactory sale by applying each of the five guidelines outlined in the infographic.

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Topics: infographic, business advice, selling a business, Business advisor, Parramatta, Orange NSW

3 first steps when selling a business [infographic]

Posted by James Price | JPAbusiness on 01-May-2019 02:00:00

Selling a business should not be like exploring an uncharted continent.

When embarking on a business sale you’re not just taking yourself, but you must also bring along your business partners, staff and advisors for the journey. It’s a massive undertaking and not one to be entered into lightly.

Don’t go exploring on a business sale unless you at least know where you want to end up.

This week's infographic is for those just setting out on the business sale journey, and step 1 is about being honest with yourself regarding why you're on this journey to help you determine where you need to go. 

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Topics: Selling your business, infographic, selling a business, Business valuation, Business advisor, Business selling, business broker, Parramatta, Orange NSW

3 ingredients needed for a successful business sale or purchase

Posted by James Price | JPAbusiness on 24-Apr-2019 02:00:00


Based on our years of business broking experience – and successfully making a match between many buyers and sellers – answering ‘yes’ to the following three questions should set you up for a successful business transaction:

  1. Price – Is the price market related and does it reflect the value a willing buyer, under the circumstances of the sale transaction, will perceive as fair?
  2. Facts – Are the facts on the business or opportunity clear, unambiguous and relevant to the risks, issues and opportunities the risk-taking party will likely perceive in making the purchase?
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Topics: Buying a business, Business transfer, business advice, selling a business, Business advisor, business broker, Parramatta, Orange NSW

Do I have to get a valuation before selling?

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

The simple answer is ‘no’, you don’t need a valuation to sell a business.

However, in terms of engaging JPAbusiness to sell your business, the answer is a resounding ‘yes’, you do need to get a valuation before you embark on a sale process.

The reason for that is part of our point of difference among business brokers. It’s based on a lesson learned early in the life of JPAbusiness, and backed by years of subsequent experience. 

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Topics: business advice, selling a business, Business valuation, Parramatta, Orange NSW

What is an earnout or contingency payment?

Posted by James Price | JPAbusiness on 10-Apr-2019 02:00:00

Earnouts and contingency payments are typical features of business sales in the Australian, European and US corporate markets.

In our work in Australia, we are seeing them increasingly used in the small to medium-sized enterprise (SME) market and we’re often involved in structuring these deals, either from a purchaser’s or vendor’s side.

If you are considering selling a business at the larger end of the SME market, with a longevity of orders and forward earnings, it’s important to consider the concept of earnouts and contingency payments because it will come up from interested parties.

It’s also important to recognise that earnouts as part of the purchase price have capital gains tax implications, so expert advice is essential.

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Topics: Buying a business, business advice, selling a business, seller earnouts, business basics, Parramatta, Orange NSW, contingency payment

When should I tell my staff I'm selling my business?

Posted by James Price | JPAbusiness on 03-Apr-2019 02:00:00

In assisting clients to prepare for a business sale process, we often get the question: When should I tell my staff I’m going to sell?

It’s an important issue because staff can significantly impact your business’ value, while selling can impact their lives.

The reality is there is no simple answer because every business is different.

A complex situation

Our guiding principle is that open and transparent communication with your staff is always a positive thing.

However, this is complicated by the fact selling a business is a sensitive issue and disclosing the fact it’s for sale can be detrimental to a business’ operations.

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Topics: staff management, business advice, selling a business, business basics, Parramatta, Orange NSW

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

 
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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