How long does it take to sell a business?

Posted by James Price | JPAbusiness on 14-Nov-2018 02:00:00

This is always the million-dollar question when clients come to us seeking help to exit their businesses.

I typically indicate to clients that they need to expect a business sale process to take at least six to 12 months.

The fastest we have sold a business from start to finish is actually six weeks. However, we regard that as a record that will probably never be broken, because it was a unique situation where, strategically, the ‘stars aligned’ between the buyer and the seller.

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Topics: business advice, selling a business, Selling your business

How to transfer business ownership [cheat sheet]

Posted by James Price | JPAbusiness on 17-Oct-2018 02:00:00

There are many issues vendors need to deal with in the lead-up to a business sale settlement, from staff contracts and entitlements, right through to P&E roadworthiness certificates.

When selling – or buying – a business, the last thing you want is a handover in which business performance is negatively impacted by transfer issues not planned out ahead of time and dealt with appropriately.

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Topics: Selling your business, Advice, selling a business, Buying a business, Business transfer, cheat sheet

10 do’s and don’ts when selling a business [infographic]

Posted by James Price | JPAbusiness on 10-Oct-2018 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. (As we often say, selling a business is not an exact science!)

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, infographic, selling a business, Business Planning

Why business sellers should do vendor due diligence

Posted by James Price | JPAbusiness on 22-Aug-2018 02:00:00

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

Vendor due diligence has two main components:

1. Understanding what my business is really worth

This is something we have covered previously in eBooks and blogs about business valuation and market appraisals.
It involves getting independent advice on what your business is really worth in the market, on a realistic, fair value market basis.

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

What is 'strategic' value when selling a business?

Posted by James Price | JPAbusiness on 01-Aug-2018 02:00:00

Strategic value is the value a purchaser is willing to pay for a business, over and above what an impartial business valuer might determine is fair market value’.

So how much more than its fair market value will a purchaser pay for a business with strategic value?

The answer is largely determined by the potential purchasers’ individual circumstances, which impact their appetite for the opportunity, but it can also be influenced by the vendor’s management decisions long before sale time.

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Topics: strategic value, Selling your business, Business advisor, selling a business, business valuer

Pros and cons of seller earnouts

Posted by James Price | JPAbusiness on 27-Jun-2018 02:00:00

I recently read a blog post about the pros and cons of seller earnouts, which I believe is worth sharing.

The blog post was written by M&A specialist Dave Kauppi from MidMarket Capital, Inc, which is based in Chicago, USA. (You can click here to read Dave’s post.)

It’s a useful article if you’re considering buying or selling a business and you want to explore measures to manage the risks of transfer and protect the value of the business, including delayed or ‘at risk’ payment of part of the purchase price consideration, such as an earnouts.

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Topics: business advice, Capital gains tax, seller earnouts, selling a business, Selling your business, Business advisor

Free template: Selling a Business Planning Sheet

Posted by James Price | JPAbusiness on 30-May-2018 02:00:00

If you’re thinking of selling your business, the JPAbusiness Selling a Business Planning Sheet can help place your business in the best position for a successful sale.

This template contains 20 questions designed to prompt you to undertake the necessary thinking, planning and acting that will ensure you and your business are well prepared for the sale process.

The free template can be downloaded in either pdf or Word format.

If you find this template useful, please feel free to share it.

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Topics: selling a business, Selling your business, Template, business advice, Business advisor

What information should I share when selling? [infographic]

Posted by James Price | JPAbusiness on 30-May-2018 02:00:00

If you are looking to sell your business, the more clearly you can describe your value proposition and present supporting information in the business sale process, the more chance you have of driving business value.

Remember, for a business person, information can reduce risk and, therefore, increase confidence.

You’re not going to have a confident purchaser willing to bid up strongly on your business if you don’t have solid, robust and transparent information to support the performance of the business.

The following infographic is a simple guide to some of the key pieces of information you need to share when selling your business. 

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Topics: selling a business, Selling your business, infographic, Business advisor, business advice

How to sell a business online without sharing too much

Posted by James Price | JPAbusiness on 04-Apr-2018 02:00:00

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.

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

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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