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We create win-win solutions  

Real business challenges

We have been working with small and medium business owners like you, since 2004. As business owners, we know that every day is a new challenge, opportunity, and it can also be a lonely journey. Sometimes we need help to get over the current hurdles we face, to either improve a situation, or merely to help take the business to the next level. With our first-hand experience, and the relationships we have built over the last 17 years, we can help solve 99% of your business challenges. Here are some of the possible scenarios you as a business might be facing right now,

Do you think your business cannot be salvaged?

Do you have a growing debtor’s book?

Is your business distressed and looking for a solution?

Does your business need a turnaround plan?

Are you looking to enter a new market, region, or country?

Do you want to exit your business?

Are you wanting to grow your business?

Business valuation perception versus reality This is one of the most misunderstood areas by small and medium business owners. Everyone attempts to put their own perspective on what is the right valuation method, what should be included or excluded from the valuation as well as perceived value. The general rule is that most valuations used, are adopted, because they provide the highest sales value of the business for the seller, yet we have also seen how sometimes the business is still undervalued. We have seen over the years how e.g., two businesses in the same sector, with different management styles have produced different values. If one business owner is gearing their business, they will have increased liability, and if the other is running a cash tight business, will result in different values of the business. The biggest fact about a business is that it is one of the biggest investments you will make in your life, yet when it comes to exiting the business for retirement purposes etc very few businesses are reaching this milestone and end up being closed versus providing e.g., retirement income to the owner that has dedicated their life to the business. There are hundreds of business valuation methodologies out there you just need to do an internet search to realise it. Never mind the other options out there and the list continues, then you end up with the business owner or business broker that adds their own twist to a valuation or tries to benchmark it against some industry standard. The reality there is not enough information available, or should we say a record of business sale history like a deeds office for property where you can get a real indication. Demand for a particular sector, area etc are also factor and will also influence the perception of the valuation. A broker will always apply the highest figure to a valuation to secure the business with a business owner and a buyer will always use the due diligence process to reduce the value, effectively forcing the seller to either settle for less to do the deal or result in a lose-lose scenario where both parties walk away with no deal. If google went on sale tomorrow there would be a bidding war for the business, all valuation methodologies would not be applicable, the valuation would be a guideline. Do you think someone will try and negotiate on price? Or try and push the value of the business down? No because before they blink the business would be sold to the highest bidder. This is where demand vs reality determines the value. Where you have a willing seller and a willing buyer it will always be the intent to realise a win-win scenario that results in a successful deal.

There are two accounting frameworks worldwide the first and original framework is GAAP (Generally accepted accounting principles), and the more relevant / current framework is IFRS (International financial reporting standards) which is currently used in 166 countries (IFRS countries)

The three key areas I refer to, and every accounting organisation uses as per the regulatory frameworks is, A - Profit and Loss / Income Statement B – Balance Sheet C – Cashflow statement This is where the value of the business sits and this is where we use all three to determine a real market value, plus we assess the current structure of the business and then we compare it to your expectation to set a final value. Why do we do this, it is simple. We have seen businesses that might have had the following scenarios.

Strong revenue model but weak balance sheet, maybe more service based than product based, or both,

Strong balance sheet with average revenue,

Strong revenue model and strong balance sheet but cashflow forecast has a different picture.

Real misconception of a business valuation Many business owners believe there is flexibility in moving the goal posts of a business valuation. The reality is they are not wearing the correct hat when they attempt to move the goals posts.

Firstly, a business is a separate legal entity in its own right, and the belief that a director has the choice that they can add and take from the business as they want is incorrect. There are legal and tax implications in every decision made on behalf of the legal entity by the director, never mind the solvency implications.

Far to often when reviewing a business valuation and discussing it with the business owners, it never surprises me when sale of a business does not go through. Way too many business owners receive an offer for the business, and then suddenly they believe there is an opportunity to move the goal posts by trying to change the baskets of goods included in the valuation/sale of the business.

Secondly the legal entity owns the assets, liabilities, services, goods etc and not the directors. There are separate tax implications for the directors, as well as the business when disposing of an asset, settling a liability, in fact any transaction relating to the business.

The reality is that not all business owners understand the legal, tax and solvency implications of some of the decisions that are made. I had a recent scenario where a proposal was made to the business owner for their business, and then suddenly they believed they had the right to change the basket of goods resulting in the goal posts being moved, and the business taking on a totally new value from the original valuation. The decision they made took a win-win scenario where they would achieve the asking price they wanted (ideal scenario for them), then they came back with the belief they had the power to change the asset structure of the business to create a win-lose scenario in their favour. The reality and impact of their decision was as follows, the proposed changes they wanted, took the business sale from a win-win scenario to a win-lose scenario, which in the end resulted in a final lose-lose scenario. Why, because the impact of their decision and the belief they had that they could move the goal post if they decided to go ahead, would result in the business being insolvent and be forced into liquidation. Why would someone pay for an insolvent business? Would you? It is for this reality that 9 out of 10 business are not sold because there is the misconception that the basket of goods that legally belong in the business valuation, can be modified to suite the personal interest of the director/s.

If you are seeking the ideal win-win scenario then get in touch, or if you need to understand what should be in your business basket of goods and what should not.

9 reasons to choose WordPress to power your business If Fortune 500 companies, including enterprise businesses like CNN, Microsoft, Facebook, Time, TechCrunch, TED etc can use WordPress for their day-to-day business, then you as a business owner should have peace of mind knowing that your business would be using the right tools with the required security, and the ability with stability to scale as your business needs do.   FACT: 41% of the web is built on WordPress. More bloggers, small businesses, and Fortune 500 companies use WordPress than all other options combined.   Make it yours, say farewell to software bloat, lock-ins, and pricey marketing clouds. Use the technologies that solve your customer experience needs and discover how quickly your business sees ROI with the agile CMS that powers the web. A seamless fit across your business whether it is from marketing to development, we bring your teams together with the flexible CMS so you can focus on creating better content across channels, backed by our support and security to meet your client needs. Be agile. Your success depends on the freedom to move swiftly and easily, regardless of what arises. Transform as needed, from pre-builds to custom, so whether you have hundreds or thousands of contributors, you can scale your digital experiences. The total cost of ownership is a savings from licensing fees, alongside our expert customer success services, reduce capital and operational expenditures when compared with other solutions.   9 reasons to consider WordPress:

You have total control and ownership of your data.

No one has access to your business website data only you. You can move it at any time.

No tied in contracts, you control the relationship with a web designer/developer and not the other way around.

It is a working tool for your business and user roles can be assigned to employees etc based on the business needs.

Powerful for content marketing and integration tools to cover 99% of the areas of your business, with additional customization available.

Multilingual sites to cater for your visitor’s language needs

Unique design for your business

Security conscious businesses like government websites and Facebook use WordPress the same as you

SEO – the best choice to rank high in search engines.