A bit of preparation can produce a business valuation that any potential buyer will be happy with.
It is not always the balance sheet that makes a busines look attractive to a would-be buyer.
Too often owners sell businesses ignoring the potential that might excite buyers.
Picking the right time to sell a business should be a matter of personal feelings, not prices.
Facing up to the issue of succession planning can generate real anxiety - even fear - in the hearts of many business owners, but failure to properly plan the changeover can undo much of the good work in building the business.
Approximately 68% of business owners are planning to retire over the next 10 years. This represents an estimated $1.6 trillion (yes trillion) in assets and management control changing hands.
The principal challenge facing many small and medium sized businesses over the next decade is how to manage the evolution of their business. 83% of Australian businesses are family owned and it is estimated that 70% of those businesses will face a generational change in the next decade.
Since human capital can be extremely valuable, consideration should be given to including it in transactions (such as licences and sales/purchases) to maximise the benefit of these transactions.
Congratulations! You’ve been offered what you feel is a good price for your business. But is it the best price available? And how much of it will you need to give to the government in tax?
The majority of business owners want to realise their investment in the business at some point, but how many work at keeping their business at its optimal value and attractive to buyers?
The financial realisation of all the effort invested in your business, an investment often of years of sweat and tears, emotion, money and countless hours, is your reward. It is then you can see your investment’s return to you - and your family.
Some owners are fearful of making themselves dispensable in their business. They want to be in control and don’t want to pass control to others, even their offspring. Many others would like to take more of a hands-off role and be dispensable, but don’t know how to achieve it. Should the business be able to run without you? The answer is a very definite, "yes".
As a Business Broker I am often asked to assess the value of a business and to give an opinion as to whether or not it is ready for sale. This article gives an insight into the steps to take – and questions to answer - when preparing your business for sale.
In the current economic climate, there are many CEOs finding themselves faced with the unfamiliar prospect of arranging the sale of their business.
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