Is now the right time to grow your business by acquiring another company? Many business owners are asking themselves this question, particularly given the current availability of finance for acquisitions. Before you jump in and make an acquisition – does the potential acquisition pass the following tests? 1. Why do you want to buy the […]
It may be surprising that there are no formal restrictions to practice business valuation in Australia, unlike tax agents, auditors and business agents. What qualifications? Fortunately both Chartered Accountants and Australian Institute of Business Brokers have identified the need for a business valuation specialisation and each have developed separate accreditations. Chartered Accountants has recently introduced […]
If selling business is not what you do for a living it is best to learn lessons from others. Most business owners will not get a second chance to do it well, and it is such an important process for your employees, your customers, and your bank account that you want to maximize your chances […]
I was at a Chartered Accountant Business Valuation Specialisation group meeting the other week and we were talking about earn outs and the presenter used a useful phrase that “earn ours are the price of owner dependency”. What are earn outs As business and practice brokers, we often see earn outs in services businesses, where […]
Is a liquidator or administrator that sells an insolvent business using a process that is materially different from that currently used by business brokers and corporate advisers breaching their fiduciary obligations to the company? Selling an insolvent business has additional challenges to other business sales including time pressures, quantity and quality of available information, knowledge […]
Whilst there are a number of different ways of valuing a business such as capitalisation of earnings and discounted cashflow, there are four key drivers of business value: Earnings – ultimately every business owner is looking to generate earnings from the holding and eventual disposal of any business Growth – the higher the realistic growth […]
When we accept an engagement to value an asset, we are very careful to clarify exactly what the client or solicitor wishes us to value. We have seen instructions which ask us to value one asset, but actually after enquiring, want something different valued. The key assets to be valued are: The Business Value The Enterprise Value […]
Some of the recent business valuations we have undertaken include: Family Law – professional services firm partner Partnership dispute – technology company Annual Valuation Price – multi party private company Partnership dispute – restaurant Family Law – manufacturing business Partnership dispute – healthcare
The desire of an administrator, liquidator or receiver/manager to sell a business fast creates opportunities for smart buyers as many distressed businesses are great bolt on acquisitions for companies who can gain access to new products and customers for a relatively low price. However buying a business from an administrator will require an appetite for […]
We are incredibly frustrated by the decision inertia that seems to be ever so prevalent in Australian business over the past few years. Over the past year we have heard: – We will wait until after the election, then – It is too close to Christmas, then – The first quarter was good, but Easter […]