An Uncommon Practice
An Uncommon Practice – Purchasing a Business While at a population level, the buying and selling of businesses is a practice that supports large industries, at an individual level, it is an uncommon practice. It is about as common as having a child and brings with it many of the mixed feelings of that process. […]
Is AI Our Nemesis
Is AI Our Nemesis or Our Saviour Is AI our nemesis is a question with no straightforward, immediate answer in Australia? For global economic growth, there is little doubt that it will be a powerful catalyst. The debate is centring on issues of equity and what it will do to the current skewed distribution of […]
How to Buy a Business
How to Buy a Business – Tips and Tricks How to buy a business is a pragmatic process. Buying or selling a business is not typically something anyone does very often. Probably about as often as having a child rather than buying a car. Because of this, it can be quite a fraught thing to […]
The Way Forward – Buying A Business
The Way Forward For The 30 Percent Could Be Buying A Business Buying a business is a potential way forward for the 30% of Australians on a different road to the other 70%. This is roughly the proportion that are not homeowners. Keep in mind that being a homeowner does not mean you don’t also […]
Asymmetric Information and Buying A Business
Asymmetric Information And Buying A Business – A Principled Approach Asymmetric information is one of the many pros and cons about buying a business. This article by Forbes lists some of them. There are many more articles that talk about why you should or should not buy a business. I want to talk about a […]
Logistics Businesses In Demand
Logistics Businesses In Demand In A Supply Constrained World Owners of logistics businesses have been seeking my help recently. They have wanted to know what a sensible price would be to list their transport or transport and warehousing businesses for sale. Although I have written about businesses with high tangible assets before. This article is […]
The Hurdle Rate
The Hurdle Rate Change Brings Opportunities The hurdle rate represents a bar that an investment must surpass before we consider it in preference for other projects. We root it in one of the most important concepts in economics. The idea of opportunity cost. This is just as prevalent in the decision to buy a business […]
What Is My Business Worth
What Is My Business Worth – Ask A Registered Business Valuer What is my business worth is a question that suits a swathe of assets whose values are unknown because they do not trade in liquid markets. Even liquid markets have their limitations. We value securities traded in liquid markets at the most recent trade […]
Due Diligence – A Different Perspective
Due diligence- A Trap or Just Part of a Contract The due diligence process is an integral part of a contract. Often, it is a cunning ruse to continue negotiating under the cover of a contract. A wolf in sheep’s clothing. To understand this, let us look at how due diligence looks from the perspective […]
Lender of Last Resort
Lender of Last Resort Will Get Your Business Sold The lender of last resort for an asset class in oversupply is often the seller. Small business represents such an asset class. The ATO considers a business with a turnover of less than $10 million to be a small business. Different laws define ‘small business’ differently. […]