No 1. PRICE AND VALUE Getting a professional appraisal and analysis of your business will ultimately determine price, saleability and potential for a quick sale
PROFITABILITY & RISK What is Profitability and Risk? Profitability – “the degree to which a business or activity yields profit or financial gain” In most
3. FINANCIALS What is so important about Financials? The financial information, is absolutely critical to the appraisal process and to determine saleability of nearly every
4. Premises and Lease In so many small businesses the location and term of lease are critical to a buyer as the current income was
5. Team, Suppliers and Customers Team A significant asset of most small businesses are the staff. Employee details are very important to the purchaser of
6. Systems and Manuals What is a system?Systems are the way you do things. To successfully operate any business it is critical to have detailed
Stock, Plant, Equipment and Vehicles Stock The Stock component of any business can in many cases be the deciding factor whether the business sells or
‘Everything is worth what a purchaser is willing to pay’ (Publis Syrus (1st Century BC) Many owners seeking a sale rely on the financial performance
Why? Predictable future earnings makes them more valuable and in demand when offered for sale.
Rent is a major expense for small businesses, particularly those owner-operated businesses. And rent expense has a direct impact on business value and saleability. The
Pareto’s Principle, named after Italian economist Vilfreod Paretor, states that, for many events, roughly 80% of the effects come from 20% of the causes. Put
The ‘break even’ point is that fine point where no profit is made. Cash flow, too, can be negative at this point. Profit margins are
