UHY Haines Norton’s Business Valuations specialist Kerry Tizard provides some advice for getting your business ready for sale. Before putting your business up for sale, ensure that your business is ‘sale ready’. Having your business sale ready will increase your chances of achieving an outcome that meets your objectives and ensures that you achieve a…Details
We are proud to present the first in a series of articles focusing on how and when to prepare your business for sale. In this article, UHY Haines Norton Business Valuations specialist Kerry Tizard explains how to determine when is the right time to sell your business. A ‘Business Value Gap’ is the difference between…Details
UHY Director Tim Livingstone addresses a frequently asked question concerning business valuations.
A question we regularly receive from both clients and non-clients is on the value of their business. The value of a business gets down to what the business has to sell. Most SME (small-to medium-sized) businesses will be selling two types of assets: tangible and intangible.
The tangible assets normally include stock and fixed assets. Intangible assets represent the non-physical items a business owns that generate income and provide a competitive advantage. Some intangible assets can be legally transferred to a purchaser such as a franchise, lease or patent. Others cannot and include a trained work force and key customer relationships.Details
We are often approached by prospective and existing clients to advise them on buying a business. Books have been written on this topic but the following provides an overview of some of the key points that need to be considered when purchasing a business.
The Starting Point
Like a house owner, business owners often have an over-inflated view of what their business is worth. That can result in emotional issues intruding into negotiations.
The Investment Decision
The critical decision is evaluating the business and whether it’s a good deal. Over paying for a business means the seller has taken value off the purchaser’s balance sheet. The ultimate decision for a business buyer is “does the investment produce an adequate return” when assessing the business nature and its risk. It is important the buyer is clear about his/her objectives. Is the intention to “buy a job” or is it to make a serious investment with a focus on making a good income and significant capital gain.
Keep in mind, a high percentage of small businesses fail or cease within the first 5 years and remember once you own a business your capital is at risk.Details
Some Facts Baby Boomers are the generation born between 1946 to 1964 They will start to reach 65 years of age from 2011 By 2020 20% of small business owners will be over 65 years old 97% of businesses in New Zealand employ fewer than 19 people 89% of businesses in New Zealand employ fewer…Details
It is not unusual, after spending many years operating at the “coal face” building and developing a successful business, for the owner to feel as though they have had enough of the day-to-day operating grind and that they have run out of energy and ideas to take the business to the next level. Equally though,…Details