Business valuation and the magic formula

Business valuation and the magic formula There is NOT one magic formula available that will determine the value of a business. In business valuation, there are both financial & non-financial aspects that need to be considered. Understanding the different basis of valuation, Asset Basis, Income Basis, Market Basis Under these approaches, there are numerous Methods…

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Timing the sale of your business?

Timing the sale of your business? Timing is the single most important factor in selling a business. To understand why you must first understand what usually drives the prices paid for businesses. The best time for an owner to sell his business is when the sale price is high. (Now what a silly statement that…

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Government announces its franchising policy reforms

Government announces its franchising policy reforms The Minister for Small Business, the Hon Bruce Billson MP, released the ‘Future of Franchising’ statement, which outlines the Government’s franchising policy reforms. Please find a copy of this statement here: Future of Franchising The Government has also released exposure draft legislation amending the Franchising Code and relevant provisions in…

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Women buying more businesses!

Women buying more businesses! So after reading the Ibisworld report (Extract Below) it got me thinking, has there been an increase in the number of businesses being purchased by women? Its not something I have ever thought about and I do not  think really matters anyway. But I thought i would look at the records…

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Valuations for Family Law & Litigation Support

Valuations for Family Law & Litigation support Whether you need a single expert, a shadow expert or just expert advice, Cornerstone Business Sales and Valuations can help you. Stephen Wray & Max Kurz understand the importance of deadlines and the requirements of the various state and federal jurisdictions. Our valuations are all prepared in accordance…

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Understanding Business Earnings

Understanding Business Earnings Understanding that business profits can be represented in different ways is important when analysising  a business for sale. Some of the ways to represent earnings are; Net profit after tax (“NPAT”), Earnings before interest and tax (“EBIT”) Earnings before interest, tax, depreciation and amortisation (“EBITDA”) Proprietors earnings before interest and tax(“PEBIT”) Proprietors…

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Should I buy a franchise?

Should I buy a franchise? Franchises may or may not be more profitable than a regular business. It depends on many factors including, the management skills of the owner, the location, the product being sold and the brand recognition, if you are appealing to a mass market or just local people. Franchises may be more…

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