Would YOU buy your business?
It's a poignant question for business owners when you really think about it. Taking a step back and looking at a business objectively is very difficult when it's the product of your own blood, sweat & tears. Still, as part of the valuation process it is something...
read moreMaking the most of your IP
In my discussions of late I have found very few business owners with a healthy appreciation for the intrinsic value of the intellectual property inherent in their enterprises. Sure, most in service industries understand the need to capture operational information in...
read moreThe Earn-Out Alternative
Earn-outs are incredibly popular in sale/purchase transactions, particularly in IP- and principal-reliant business models (e.g. recruitment, marketing/communications, PR, management consulting). The primary objective of the earn-out is risk mitigation, in which the...
read moreBeware the unlicensed intermediary
In Australia, transaction intermediaries - such as Business Agents, Estate Agents, Corporate Advisors, etc. - are subject to a stringent licensing regime operating at both State and Federal levels. The licensing system is designed to ensure only appropriately...
read moreBeware the direct approach
We often receive calls from business owners who have been received an unsolicited approach from a potential purchaser, wanting advice on the offers that have been tabled. This approach has often kindled an interest in or desire to sell the business, so the enquiry...
read moreThe keys to an effective earn-out
Love them or loathe them, earn-outs are a fact of life when selling a service business. It is rare to see an M&A transaction in which an earn-out is not required, so better to set the expectation now than to confront it at sale time unprepared. For those...
read moreThe Number One Value Driver
In my experience, the number one objective of any business owner looking to exit is to achieve the highest possible sale price. It stands to reason, then, that all of you business owners out there would like to know the secret to maximising value. This little secret...
read moreChoosing your advisory team
The vast majority of business owners I come across who commence the sale process have no previous experience in selling (or even buying) a business. Whilst strong business acumen helps considerably, the M&A process is quite complex in its entirety and littered...
read moreBusiness Owner Tips: Preparing your agency for sale
The old saying goes that there are only two sure things in life: death and taxes. If you are a business owner, you can add a third “sure thing” to the list: you will, at one time or another, exit your business. (Let us hope that it is a voluntary decision, and not...
read moreThe development of an Exit Plan
In June 2004, the BRW commented on research into the exit plans of closely-held business owners published by CPA Australia thus: “In the next five years, tens of thousands of small businesses will be up for sale. Many will not find a buyer.” The fundamental causes of...
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