Tag Archive for: Business Succession

Decoding Business Sale Values: A Strategic Approach

Increasingly with the transition of the Baby Boomers into retirement, more and more business owners are considering the sale of their business. This is a very important event, as it allows them to unlock the investment which they have built up in their business over time and assists with funding their retirement. The key question is generally – “how much is it worth?”

We have appraised many businesses as part of our business brokering – so we know that there are many different “value” numbers in use in the market. They include;

  1. The wish value – the value
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Unlocking Business Value: Every Business is Saleable

Essentially every business is saleable; it’s simply the sale value and terms which vary. The issue faced by many business owners is that the sale value/terms available, are significantly lower than they had hoped for.

So if you are seeking a sale exit from your business – you really have the following options available;

  • Sale to the Open Market
  • Break up and sale of the components (essentially a liquidation of the business for its raw assets)
  • Sale to associated entities / employees

Each of these have merit, but come with different costs and benefits which need to be carefully considered … Read More

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Succeeding with Business Succession Planning

Succession is an inevitable bridge that needs to be crossed for all businesses. For some, the decision is made in a millisecond – whereas for others, it can be an all-consuming dilemma. This article is to help those struggling with this dilemma.

It is important to recognize that succession can be a very difficult and sensitive issue for the business owners to confront. Regardless of whether they founded the business or succeeded into the business themselves – the notion of handing over the reins to someone else can raise all manner of concerns.

Confronting the issue of needing to plan… Read More

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Preparing Your Business for Sale: What You Need to Know

Business Sale Building Blocks

The prospect of selling a business, or at least positioning it so it can be sold, will be confronted by all business owners eventually. It may be for 20 years down the track (rare) or to sell now (more common), but the simple reality is that all businesses will have a change of ownership at some point.

The burning question for most owners is, “what do I have to do”?

Selling a business can be a relatively easy process, providing of course – you have a business which is worth buying (from a buyer’s perspective) and … Read More

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10 Mistakes to Avoid When Selling Your Business

With lots of blood sweat and tears, you have built a business over time which is worth something…. and now you want to sell it.

  • Some would say that the hard work has been done, but you can’t take your eye off the game at this crucial time – as it could blow up in your face and cost you a lot.

Selling a business is unfamiliar territory for most business owners, so a couple of poorly timed comments or a lack of preparation could result in a material change to either the sale price, its terms or even … Read More

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Announcing: My Business is Up for Sale! Are You Ready?

The sale of a business is typically an emotive situation for the business owner…… and in the majority of cases, something that they are very unfamiliar with. So if you are thinking of selling your business, then consider the following 6 ingredients for a good business sale experience.

Clarity on why you are selling

  • This is normally an “ice-breaker” question which comes up in the first few minutes of discussion – so have an answer. Some owners try to be smart and give “the right answer” for why they are selling, but I personally advocate a clean honest response. Be
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