4 marketing tips when selling a business [video]

Posted by James Price | JPAbusiness on 22-Jan-2020 02:00:00

No one knows your business like you do and, whether you choose to sell it yourself or work with a broker or advisor, you will play a key role in the marketing process.

Your extensive knowledge of the business needs to be translated into marketing material that will inform potential purchasers of the opportunity your business presents.

The following video contains 4 key tips for marketing a business for sale: what they are and how they can contribute to the ultimate success of a sale.

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Topics: Selling your business, Advice, Brand and marketing, Video, selling a business, Business advisor, Parramatta, Orange NSW, marketing

Do I qualify for Small Business Capital Gains Tax Concessions?

Posted by James Price | JPAbusiness on 15-Jan-2020 02:00:00

Small Business Capital Gains Tax (CGT) Concessions can provide generous and attractive concessions for small business, and the structure of your sale transaction may impact whether or not you qualify for the concessions.

However, you must obtain advice from a CGT specialist to ensure the structure you choose is not deemed to be tax avoidance. Remember, tax minimisation is legal – tax avoidance is not.

The following blog is an excerpt from our updated CGT eBook, Capital Gains Tax 2.0 – Issues to consider when selling your business.

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Topics: Selling your business, Advice, Tax, Capital gains tax, eBook, Business advisor, Parramatta, Orange NSW, CGT

Capital gains tax issues to consider when selling a business (updated)

Posted by James Price | JPAbusiness on 08-Jan-2020 02:00:00

In 2014 we published an eBook titled Capital Gains Tax – Issues to consider when selling a small to mid-sized business. This eBook drew on extensive experience, including that of our guest contributor Michael Pisani, partner at Chapman Eastway, and remains one of our most popular publications to date.

Given the far-reaching scope of Capital Gains Tax (CGT) and the ever-evolving nature of taxation laws, in 2017 we released Capital Gains Tax 2.0 – Issues to consider when selling your business. The new eBook did not replace the original, but instead complemented it.

Over the past few months, the JPAbusiness team has been reviewing and updating the information in both eBooks, to reflect the most recent changes in Australian tax policy.

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Topics: Selling your business, Advice, Capital gains tax, selling a business, Business advisor, tax minimisation, Parramatta, Orange NSW, CGT

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

Why you need a valuation before starting the business sale process

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

When selling a business, it’s important to think carefullybefore taking it to market – about your reasons and objectives for selling.

Once you’ve established your objective, write it down and/or discuss it explicitly with your business partner, spouse and/or advisor.

You then need to obtain a professional valuation to determine whether a sale could meet that objective.

For example, sometimes we see business owners wanting a certain amount for their business and that amount is not necessarily determined by what the market would likely pay for the business, but rather it’s determined by the amount of outstanding loans the business owner has with the bank.

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

What is goodwill and do business buyers still pay for it?

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

Goodwill is an intangible value associated with a business.

As we have explained in other eBooks and blogs, 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.

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Topics: Business Value, Selling your business, Advice, Business transfer, BME, Due diligence, Exiting your business, Business maintainable earnings, James Price, JPAbusiness, goodwill, Parramatta, Orange NSW

Share value v Assets value when selling – what's the difference?

Posted by James Price | JPAbusiness on 07-Aug-2019 02:00:00

If you are a business owner and someone offers to buy your business, their offer price can often look quite good on the surface.

However, it is the basis on which that price is offered that determines whether the price represents true value for the business or not.

An offer price will usually be based on one of two concepts, which I call:

  1. Going concern business value (goodwill and related business assets value)
  2. Equity value (share value).
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Topics: Business Value, Selling your business, Advice, Valuations, Parramatta, Orange NSW, equity value, going concern value

How long does it take to sell a business? (Video)

Posted by James Price | JPAbusiness on 31-Jul-2019 02:00:00

The time it takes to sell a business is heavily influenced by how prepared you and your business are for an open market, or trade, sale.

In this video I'm sharing 3 basic things you should have done before embarking on a sales process:

  1. Gathered and prepared some of the key information about your business that a purchaser will want to examine
  2. Sought independent advice on the market value of your business
  3. Sought professional advice on the potential tax and other implications of selling. 
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Topics: Selling your business, Business Planning, Video, Succession planning, business advice, selling a business, 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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