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 as business sale transaction advisors.
Use these tips to help you make the right decisions when preparing your business for sale.
Topics: Selling your business, Advice, Business Planning, infographic, selling a business, Business advisor, James Price, JPAbusiness, Parramatta, Central West NSW, business sale, business sale transaction advisor
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.
A pending sale can unsettle your team and, if it gets out in the market, it can cause difficulty with clients or suppliers.
In this video I share some strategies for sharing business sale plans with key staff:
Topics: Selling your business, Video, staff management, business advice, selling a business, Business advisor, James Price, JPAbusiness, business basics, Parramatta, Central West NSW
In a perfect world, business owners would be preparing their businesses for sale from the moment they established or purchased them. For example:
Topics: Selling your business, Free download, business advice, eBook, selling a business, Business advisor, Business selling, vendor due diligence, JPAbusiness, Central West NSW, business sale
We recently helped facilitate the sale of a client’s business for twice its assessed value – a value we had independently appraised!
The valuation was based on the business’ sales performance, its recent past earnings, our assessment of the repeatability of those earnings given internal and external business health factors, and the assignment of a multiple of earnings.
So, how did the business owner achieve a sale price that so far outstripped our initial valuation?
The short answer is that he had an open mind and was willing to work with us to explore all options for exit.
Topics: Selling your business, Exiting your business, strategic value, business advice, Business valuation, Business advisor, Business selling, business broker, James Price, JPAbusiness, Parramatta, Central West NSW, succession, business sale, exit strategy
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.
Topics: Selling your business, Advice, Capital gains tax
As a business owner or manager, there are a number of 'levers' you need to control to successfully manage working capital and drive a successful, cash-generating business.
As our Working Capital Checklist shows, those levers fall into two buckets: current assets and current liabilities.
You can use the free checklist to assist you in achieving a firm control of your working capital levers and cash position, so your business proposition is not hampered by poor cash flow.
Topics: Business Value, Selling your business, Cash flow, Working capital, Exiting your business, Template, Checklist, business management, COVID-19, business strategy, coronavirus
A few years back the JPAbusiness team facilitated the sale of a business involved in import and distribution.
It was a well-known, independent brand that had been established for well over 50 years and had solid bottom-line performance.
Unfortunately, when it came time to exit the business, it soon became apparent there was too much inventory (stock on hand).
We negotiated a price for the goodwill, plant and equipment etc, based on a multiple of Business Maintainable Earnings (BME), which is essentially the cash flow of the business.
Then it was time to address the stock value.
Topics: Business Value, Selling your business, Advice, Cash flow, Inventory, selling a business, Business advisor, JPAbusiness, Parramatta, Orange NSW, cash flow management
When selling a business, it's important to put yourself in the position of a buyer.
Ask yourself: 'If I was considering buying this business, what would I want – and need – to know in order to make an informed decision about the opportunity?'
As advisors, we understand that good information on a business opportunity is critical to a successful sale.
Topics: Selling your business, infographic, business advice, Business selling, business broker, Parramatta, Orange NSW, sell a business
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.
Topics: Selling your business, Advice, Brand and marketing, Video, selling a business, Business advisor, Parramatta, Orange NSW, marketing
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.
Topics: Selling your business, Advice, Tax, Capital gains tax, eBook, Business advisor, Parramatta, Orange NSW, CGT
