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What is Goodwill in Business?

In certain market situations, particularly in mergers and acquisitions, the term “goodwill” is often used. Goodwill in business is a crucial component of the business valuation process because it lets the acquiring company or simply the acquirer know what they are in for in purchasing the target enterprise. To understand goodwill in business, you need to understand its effect on the operation and acquisition processes. When was the last time you walked into Macy’s or Starbucks? How did you feel about the steep prices you paid for the goods? Did you feel that they worth their price? The answers to these questions should help you better understand goodwill.

My business is worth WHAT?!?!

At the time of retiring the average business owner in Australia does not have a funded pension beyond what they have set aside in their own and their spouse’s Superannuation; most will have a personal residence that has only recently had the mortgage paid off and less will have a significant investment portfolio. Remember, these are averages so your circumstances may be better or worse off. In many situations the family business will be the most significant financial asset available to provide for the owner’s retirement years. You should be asking yourself several questions, but are you ...

Why should I ask if my Business Valuer is licensed?

Most people require the services of a business valuation company at one point or another. If you are a corporate head who wants to retire by selling off your company, you would need a valuation to increase your asking price. A professional valuation would also come in handy for the homeowner who wants to sell off his property or the shareholder who wants to cash in his interest. Valuations are therefore a crucial part of any business. However, sometimes you may feel as if a professional valuation may not justify the cost. Why hire a professional when any appraiser can do the job? Why should you choose a Certified Professional Valuer’s estimation over your own or an unlicensed company’s when you want to sell your stake interest? These are the questions we will be looking at in this post.

Why is a Business Valuation needed when conducting a business merger or sale?

There comes a time when business people have to make a choice about the future of their enterprises. Some of them consider selling their businesses while others would make merging with another company one of the options on the table. During such a time, a business valuation becomes crucial to the company and its shareholders. Determining what a business is worth is however not only crucial to the company about to be sold or merged with. On the contrary, having a business valued offers considerable interest to the parties considering merging or buying out the business. In this article, we will look at a few reasons why this is true.

What to do if you are an overseas investor looking to buy a business in Western Australia

Purchasing a company is a risky investment anywhere in the world, but more so when you are a foreigner looking to buy a business in Western Australia. Business risks are greater for overseas investors thinking of buying a business or a property in the area because they suffer the burden of greater due diligence. Before the sale of a business, its proprietors are responsible for it. Once a legally binding contract is signed, however, those responsibilities fall onto the new owner or investor. This is the reason why investors should ensure they follow each of the steps outlined below before deciding to purchase a business in Western Australia.