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…
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…
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…
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…
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…
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…
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…
Buying a business – difference between buying assets vs shares? When you purchase shares of a company, you are acquiring all the liabilities of the company. This includes current, future, unrecorded and tax liabilities. All of the assets of the company go to the new owner of the business if they buy shares of the…
Selling to a competitor Are you having troubles trying to sell your business? Do you need to market to a competitor? How do you give information to a competitor without revealing too much information about yourself or your business? You never should reveal your customer list at the beginning of your negotiations. Purchasers can use…
Approaches in Business Valuations Asset Based Approach: The Asset-Based approach is often called the “Cost Approach” or the “Replacement Cost Approach”. In this approach, each component of the business is valued separately and the asset values are totalled. The Asset-Based Approach provides the valuer with the cost of duplicating or replacing the assets of the company…
Capital Business Brokers Joins Cornerstone Business Sales & Valuations We are pleased to announce Rumzy Meena & Capital Business Brokers have joined with Cornerstone Business Sales & Valuations. Capital Business Brokers was established in 1982, the Managing Director Rumzy Meena has been involved in the business brokerage industry since 1978. Regarded as a leader in…
Cash Businesses – Should I buy? We always hear about cash businesses, but what does it really mean. In the past, they were businesses with undeclared income. Buyers would investigate and purchase based on this undisclosed cash income. Nowadays we refer cash businesses to those without clear documentation. This doesn’t mean that they are hiding…
When is the best time to sell your business? Planning ahead is important to get the right price for your business, says David Ferraz. If you are a printing business owner, chances are that your business is one of your largest personal assets. You may even have more funds invested in your business…
Why Use a Business Broker? Selling or buying a business is one of the biggest decisions a business Owner can make. It is much more complex than selling a house, transfers of business ownership demand considerable time and effort. Usually, business owners are so busy with their daily operations that they are not able to…
Valuing businesses and company shares We have an experienced team of business valuers headed up by Stephen Wray. Stephen along with Max Kurz have vast experience in the SME market in both selling and valuing. So whether you need a valuation of the business and its assets or of the shares. We offer valuation services…
