Why it might pay to become a buyer
I was introduced to a new client recently who had taken great pains to set his business up for a successful sale. Growth was solid, management strong, systems up to date and contracts in place with top clients at good margin. The financial profile suggested an...
read moreThe 7 Deadly Sins of Business Sellers
I was reminded again recently by a now former client of how little most business owners know about and appreciate selling a privately-owned concern, how unrealistic their expectations are, and how loath they are to recalibrate their expectations based on market...
read moreDo you run a Business… or a Practice?
This may seem like an abstract question at first, however it is abundantly evident that the exit options available to a business differ significantly from those of a practice. This is a particularly vital distinction in the business & professional services...
read moreFive key business decisions for the new financial year
To kick off the 2012 financial year, we present five key business decisions for your consideration: 1. Free up your cash flow. In an economic environment of ongoing uncertainty (unless your business is sharing in the mining & resources bonanza) and ballooning...
read moreKilling off cash flow constraints
Someone once told me: Revenue is vanity. Profit is sanity. Cash flow is reality. How often do we hear about small, growing businesses that were making great profits but were strangled by cash flow? It is summed up well in the old saying: "they went broke making a...
read moreWhy the majority of businesses never sell
Recent information shared by my US-based brethren suggests that only a minority of businesses they work with ever find a buyer. The actual figures vary per advisor and are heavily influenced by their current economy, location, industries serviced and size of business...
read moreNo Surprises: Taking the sting out of due diligence
If there is one thing that buyers of or investors in privately-owned businesses hate more than anything else, it is surprises (and I'm not talking the more than welcome gift-wrapped ones): unsigned contracts, undetected accounting anomalies, undisclosed litigation and...
read moreNatural disasters: the need for a business continuity plan
The catastrophic floods affecting the State of Queensland at the moment have rammed home a critical issue for business owners to consider not only in the context of exit-readiness, but in protecting their core wealth-generating asset. All day I have been receiving...
read moreEmployee Equity: Golden Handcuffs or Ball & Chain?
The concept of employee share ownership has been raised by a number of business owners in recent discussions, each with their own motivations and intended structures. What these discussions have clearly demonstrated is both the desire to invite key staff to share in...
read moreGet big, get niche or get out
Lunching with an associate recently I was reminded of this phrase in relation to business strategy: get big, get niche or get out. To me, it encapsulated beautifully one of the key drivers of exit-readiness: appeal. Why is it so pertinent? Fundamentally, if your...
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