Having a strong, competent, empowered management team in place in a business means that any owner or prospective owner can confidently leave the day-to-day management of the business to the team. Its effect is twofold: It releases the owner...
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Unfortunately, many business owners get the wrong end of the stick when they try to work out what their business might be worth. For instance, I have seen many valuations where businesses are being valued by attempting to determine...
A commonly employed approach to business valuations is the Capitalisation of Future Maintainable Earnings (CFME), which establishes the business’s value based on a multiple of its earnings. So, lets delve into the intricacies of earnings multiples and their significance...
The most appropriate approach to valuing an accounting practice should involve a methodology that captures future earnings after paying the operating expenses that it must incur to attain those earnings as well as factoring in the particular set of...
Quite simply, the structure that is suitable for you is not necessarily suitable for someone else or for another business, and often structures evolve, and not necessarily in an orderly or even appropriate manner. So, restructuring your business, whilst...
Business valuations can be complex, and the rules can be hard to pin down sometimes. There are many business valuation methodologies that can be employed, aimed at determining the value of the enterprise. They are usually prepared on the...
When assets are immediately written-off or depreciated in an accelerated manner, the market value of the asset will bear no resemblance to the value of the asset on the balance sheet of the entity (if it appears at all)....
Diversifying your client’s locations is another important step in mitigating risks related to their location. Having multiple locations can provide a cushion against unforeseen events such as natural disasters, economic downturns, or changes in consumer behaviour. However, this strategy...
By the time computers started turning up in schools a few years later, I was the annoying kid in class who was showing the teachers how to use them and then sitting bored whilst they taught the other kids...
It’s the final quarter of the financial year, and now, the importance of integrating business valuations and appraisals with strategic tax planning becomes particularly significant. This is a crucial period for accountants who aim to leverage every available tool...