@Michael Kerr and @Graham Stephen, founder of @BizVal Global, discuss #businessvaluation for small and medium enterprises (SMEs). With "85 to 95% of small businesses not sellable" we discuss the imperative for owners and advisers to understand business value today so they can begin proactively increasing it from tomorrow. 

Graham explains why forward-looking valuations are the key to helping business owners make informed decisions.

They explore Graham's journey into entrepreneurship and his fascinating global perspective on business valuation,

Takeaways

• Business valuation is often overlooked until a sale is imminent.
• Many business owners do not understand the true value of their business.
• Regular valuations can help business owners make informed decisions.
• Owner dependency is a critical factor in business valuation.
• Valuation should be a forward-looking process, not just historical.
• Understanding cash profits is more important than revenue figures.
• The compliance aspect of valuation can limit its effectiveness.
• Data accuracy is essential for credible valuations.
• Removing red tape can foster a better environment for SMEs.
• Access to funding is crucial for small business growth.

Chapters

00:00 Introduction to BizVal Global and Its Purpose

02:32 Graham's Journey to Entrepreneurship

05:27 Understanding Business Valuation Importance

08:43 The 85% of Unsellable Businesses

12:13 Global Perspectives on Business Valuation

14:25 Choosing the Right Valuation Approach

18:43 The Valuation Process Explained

21:40 Key Valuation Drivers for Business Owners

24:39 The Role of Accountants in Valuation

27:36 Valuation Multiples and Their Implications

30:39 Understanding Business Valuation: Buyers and Multiples

34:30 The Impact of Business Age and Owner Dependency

38:33 Mitigating Risks: Insurance and Business Preparedness

39:28 Data Sources and Valuation Challenges

43:21 Valuation Process: A Comprehensive Approach

49:23 Valuation Gaps: Realistic Expectations and Deal Structures

52:10 Improving Australia's SME Landscape: Key Recommendations

@kerrcapital

Thanks for listening.  Visit the Owner To Owner Podcast website to subscribe, listen back, or check out any resources or information mentioned on the show.

Search @ownertoownerpodcast on your favourite podcast player to subscribe and listen to the episodes.

Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

[email protected]

www.ownertoownerpodcast.com.au