Many businesses, particularly small to mid-sized businesses, rely heavily on one or two key individuals for the business to operate.
These individuals are often the business owners and they may be reluctant to delegate control and decision making for a variety of reasons.
Whatever those reasons, the result is centralised decision making, knowledge and experience, which are not easily transferable in a business sale.
Ultimately, of course, that impacts business value – and not in a good way!
Topics: Valuations, Exiting your business, Template, Video, Succession planning, Business valuation, risk management, succession, business succession, business value drivers
When it comes to succession and estate planning, it’s never too early to start thinking – and talking – about it.
However, some business owners prefer not to confront their own mortality and just continue on running their business while avoiding thinking about, or planning for, the inevitable i.e. their ‘exit’. This creates the perfect environment for conflict among those left behind.
Topics: Business Planning, Family business, Succession planning, estate planning, succession, business succession
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, Case study, Exiting your business, strategic value, Business valuation, Business selling, client case studies, succession, business sale, exit strategy
It’s never too early to start thinking about your succession strategy and developing the skills of your team and business capability.
Succession planning is about creating a sustainable business that will continue to operate successfully into the future, whether you stay in the business or not.
The following infographic contains 6 succession strategies you can start employing today. Adopting these strategies will help future proof your business for when and if you decide to take up an exit opportunity, or relinquish operational involvement in your business.
Topics: Business Planning, infographic, Succession planning, staff management, managing employees, succession, business succession, managing staff
At JPAbusiness we know that professional, credible information is key to a successful business sale.
We also know that, as a business owner, you know your business better than anyone else.
The challenge, when it comes to selling, is that sometimes a business owner can be a little too close to the action to objectively describe and communicate their business’s key attributes to potential purchasers.
Topics: Selling your business, Exiting your business, succession, selling my business
