What Makes a Business Worth Acquiring? A CFO’s Cheat Sheet

Let’s say your CEO walks in and says, “We’re thinking of acquiring a business.” Cue the internal audit alarms, spreadsheets, and heart palpitations. As CFO, your job isn’t just to model the deal—it’s to sanity-check whether the target is actually worth acquiring in the first place. So, what should you look for before your executive team

Crafting and Navigating the Valuation Roadmap: A Path to Maximising Your Business’s Exit Value

Many business owners share the goal of exiting a business at maximum value, yet achieving this requires more than just hoping for the best. It demands strategic planning, targeted execution, and a clear understanding of what drives your business's value. The valuation roadmap should be at the heart of this process—a crucial tool that sets the course

Your Business Exit Strategy: Plan Now, Prosper Later

If you are a business owner, you’ve likely poured your heart, soul, and countless hours into building your company. But have you thought about what happens when it's time to step away? Whether you’re planning to retire, pivot to a new venture, or simply cash out, a well-thought-out exit strategy is crucial to ensuring you

Is a Business Valuation the Same as the Transaction Price when doing an Acquisition?

Many parties seek a business valuation when entering an acquisition, expecting that the number presented in the valuation report will reflect the final transaction price. However, the reality is often more nuanced. This article explores the distinctions between a business valuation and the transaction price, shedding light on the factors that can influence the final deal.

What is an Equity Risk Premium and How Does it Influence Business Valuations?

Understanding the concept of equity risk premium (ERP) is essential for accurate business valuations in finance and investment. Often referred to as the market risk premium, ERP plays a pivotal role in determining the required rate of return for equity investors. This article explores the importance of ERP, its calculation, and its application in the Capital

Why Legal Agreements are Essential When Introducing New Shareholders

When a private business welcomes new shareholders, especially through affordable investments facilitated for employees, management, BB-BEE, family members, or other groups, it’s tempting to simplify the process. Many might think, “Let’s issue the shares and get on with it.” However, such a mindset can lead to significant complications down the road. Establishing comprehensive legal agreements and

Succession Planning: Beware the Tax Implications!

Succession planning is critical to business continuity, ensuring that new management or family members are well-prepared to take over the reins. However, one of the most challenging hurdles in succession planning is navigating the tax implications accompanying company ownership changes. As discussed in our previous articles, "Securing Your Legacy: Ownership Succession Planning with Worth.Business" and "Unlocking

Strategic growth through acquisitions: Now is the time!

South Africa's dynamic yet under performing economy presents an opportunity for larger businesses seeking growth through acquisitions. Despite the economic challenges, several aligning tailwinds make it a compelling case for companies to expand their reach and secure a prosperous future through strategic acquisitions. Low Valuations In the context of South Africa’s weak economy, business valuations are

Unlocking the Potential of Affordable Share Ownership

In our previous article, Securing Your Legacy: Ownership Succession Planning with Worth.Business, we discussed the importance of planning for the future to ensure the longevity and success of your business. A key element of this planning is offering shares to employees and key managers, turning them into shareholders invested in the company's success. However, the affordability

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