Owner To Owner Podcast

BizVal Global founder Graham Stephen on making your business more valuable and sellable.

Episode Summary

Graham Stephen estimates that 85% - 90% of SMEs are not sellable! It's alarming and its why he's building BizVal Global as a valuation platform to educate owners and advisers.

Episode Notes

@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