JPAbusiness

Valuations are extremely useful management tools for business owners looking to maximise their current business performance and long-term value.

A valuation can help you identify what you are currently doing that is:

a) adding to your business value, and

b) detracting from that value.

My advice is that, if your business is greater than five years old, you should have it valued on a reasonably regular basis, say every 2–3 years depending on your growth track and the external environment the business is experiencing.

Topics: Business Value, Valuations, Video, business management, market appraisal, business valuer

Most business owners only seek a business valuation after being prompted to do so by a significant ‘event’, for example family break-up, retirement, need for business restructuring, bank lending requirement, purchase offer and so on.

My experience indicates the opposite course would be better: valuation should be considered a management tool and be done before, and separate from, such business and emotive life events.

The following case study shows how an independent valuation, carried out early, would have made life a whole lot easier for one of my clients.

Instead this client found themselves in a credit squeeze with little understanding of the true value of their business to potential financiers and the drivers that really matter to external parties.

Topics: Business Value, Valuations, Case study, Business valuation, business management, client case studies

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

Business owners often seek a business valuation after being prompted to do so by a 'significant event’, for example:

• a family break-up
• retirement
• need for business restructuring
• bank lending requirement
• purchase offer
• bringing in a new shareholder or partner, and so on.

In this video I explain how valuation can actually be used as an ongoing management tool, adding value while you’re running the business and also potentially boosting value on exit.

Topics: Business Value, Valuations, Exiting your business, Video, Business valuation, growth strategies

Business market appraisals and valuations are both robust assessments of a business’ worth and are appropriate for use in different circumstances.

In this video I explain the difference between a business market appraisal and a business valuation, and when each should be used.

Topics: Business Value, Valuations, Video, Business valuation, market appraisal, valuing a business, business appraisal

Valuations are extremely useful management tools for business owners looking to maximise their current business performance and long-term value.

A valuation can help you identify what you are currently doing that is:

a) adding to your business value, and

b) detracting from that value.

My advice is that, if your business is greater than five years old, you should have it valued on a reasonably regular basis, say every 2–3 years depending on your growth track and the external environment the business is experiencing.

Topics: Business Value, Valuations, Video, Business valuation, business management, market appraisal

Business valuation is not an exact science and nor is it a simple science. However there are some factors that should always be considered when assessing a business’ value.

They are:

• repeatability of current earnings
• availability of information on the business’ performance and business model
• point of difference and competitive advantage.

We've created the following infographic to help you get started on assessing the value of a potential purchase opportunity.

Topics: Business Value, Valuations, infographic, Business valuation, business valuer

Business market appraisals and valuations are both robust assessments of a business’ worth and are appropriate for use in different circumstances.

In this video I explain the difference between a business market appraisal and a business valuation, and when each should be used.

Topics: Business Value, Valuations, Video, Business valuation, market appraisal, valuing a business

The JPAbusiness team is excited to announce that we have opened an office in Parramatta – the Western Sydney hub poised to become Sydney’s ‘second CBD’.

The Parramatta team will be led by Valuation Advisor Alex Dzang and will work closely with our Orange office.

Establishing a base in Sydney has been a natural progression for JPAbusiness, as we have experienced increasing interest from business clients across the Sydney basin. And with Western Sydney, in many respects, the growing heart of the Sydney metropolitan area – albeit still with strong links to country NSW – Parramatta was the logical choice.

Topics: Buying a business, Valuations, Parramatta, franchise opportunity

The JPAbusiness Strategic Value Checklist has been created to help you drive positive strategic value in your business.

Don't wait until it's time to sell or exit to work on the business characteristics listed in the checklist. While strategic value drivers are not always quantifiable (as we discussed in our free eBook Strategic Value in a Business Sale) they’re not fairy dust either. They can’t be created with a magic wand overnight!

Strategic value drivers result from real actions you can take to enhance year-by-year earnings in your business, and also potentially assist you to capture extra value on exit of your business.

Topics: Business Value, Selling your business, Valuations, Exiting your business, Checklist