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

3 pieces of financial info to share when selling a business [infographic]

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

We are often engaged by business buyers to assist them in undertaking due diligence on target businesses.

In the early stages of that process I often come across vendors who have an accountant, business broker or other advisor who is very coy about sharing what I would call basic financial information on the business.

If you are seeking a purchaser’s genuine offer on your business – whether non-binding or binding – at a minimum, you should be prepared to share the following:

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Topics: Selling your business, Advice, selling a business, Business advisor, James Price, Parramatta, Orange NSW, financials

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

How to choose a business broker [video]

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

When choosing a broker to help sell your business, there are three key elements to look for:

  1. Experience in your industry and in selling businesses of your size and ‘shape’
  2. Project management expertise
  3. Communication skills.
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Topics: Selling your business, Advice, Video, Business advisor, business broker, 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

What happens after you sell your business? [cartoon]

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

After the process of finding a buyer and selling your business, there is a good chance you’ll still need to turn up to work for a period of time.

Conditions of a sales agreement often include requirements for continuation of service for a transitional period. This involves working alongside the new owner for a set period to share information and knowledge of the business.

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Topics: Selling your business, Advice, Family business, Exiting your business, Business advisor, cartoon, Parramatta, Orange NSW

How to transfer business ownership

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

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

There are several important issues a vendor and, by definition, a purchaser need to consider and deal with in the transfer process leading up to settlement.

There is quite a bit of interplay and overlap between the issues but, for the purposes of this blog, I have separated them into seven categories:

  1. Employees
  2. Financial
  3. Customers
  4. Suppliers
  5. Stock
  6. Legal
  7. Other.
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Topics: Buying a business, Selling your business, Business transfer, business advice, Business advisor, 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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