Restraint of Trade- Social Media Platforms

The use of social media in the workplace is dramatically changing how we go about business, bringing both significant opportunities as well as potential threats.

Without adequate safeguards, the contacts made by employees on social networking platforms, such as LinkedIn, could be retained by the employee and used to the detriment of the previous employer.

There are a number of actions that your business should definitely consider to help safeguard itself against potential loss and damage, in terms of client relationships, confidential information and intellectual property:

1. ensure your contracts of employment include the most thorough protection possible;

2. introduce policies and procedures that cover the use of information in a social media context and set rules around how employees can and cannot use social media to network with customers and prospective customers;

3. matters to address with new employees on commencement of the employment relationship, so that the expectations in relation to the use of, and rights associated with, social media contacts both during and after employment are clearly set out; and

4. how other measures (such as paying for "premium accounts" on LinkedIn) can demonstrate professional networks created in the course of employment as distinct from social networks that may fall outside the bounds of employment and remain unprotected.

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. To stay up to date with our latest listings, register here.

How Business Brokers add value

If business owner wants to maximize the price he or she receive then we strongly believe they should trust the process to an experienced specialist business broker and focus on what they do best – running the business.

There are 5 good reasons to use a broker:

• CONFIDENTIALITY
Many business owners are concerned that their suppliers, customers and staff are not aware that the business is on the market until an unconditional sale has been arranged. The business broker can obtain confidentially undertakings, qualify the potential purchaser and eliminate ‘tyre-kickers’ before identifying the business.

• MARKETING
The more genuine potential business buyers that the opportunity can be exposed to then the more chance of attracting the premium buyer. Our company has a multi-pronged marketing strategy using print advertising, major internet sites and powerful direct mail programs. We also have a huge database of potential investors who have signed confidentiality deeds and understand the sales process.

• VALUATION
Pricing the business right is so important. Research shows that the ‘over priced’ business often becomes ‘shop-soiled’ and sell for less when subsequently reduced than it could have.
Experienced business brokers have access to extensive market data and do not rely solely on academic calculations. They also have the business ‘savvy’ to recognize the value in the intangibles and the benefits that will appeal to a buyer.

The business broker can suggest a price range that will allow for the premium buyer and be credible and defensible.

• EXPERIENCE
The specialist business broker will have a strong team working to achieve the business owner’s goals and objections, extensive networks with professional advisors and proven negotiating skills.

• BEST OF ALL
If you are dealing with our company you are guaranteed that there will be no fee payable unless we sell your business on terms and conditions acceptable to you – (all marketing is at our cost) and we believe our fees are the lowest of the specialist business brokers.

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. To stay up to date with our latest listings, register here.

Why do I need a Section 52 Statement?

In Victoria you are legally required to provide a prospective buyer with a Vendor’s Statement (also known as a 'Section 52 Statement') if the goodwill, plant, equipment or fittings of the business are being sold for a total price of $350,000 or less. Failure to provide this statement or satisfactorily complete it will give the buyer the right to terminate the sale contract. You must give the purchaser or their representative a completed and signed copy of the statement before they either sign the contract or pay the deposit.
The sale of small businesses is regulated by provisions of the Estate Agents Act 1980 and the Estate Agents (General, Accounts and Audit) Regulations 1997.

Your accountant will make sure you have this document is available to prospective purchasers prior marketing the business.

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. To stay up to date with our latest listings, register here.

Top 10 Exit Planning Mistakes

We have compiled a list of the common mistakes business owners make when they exit their businesses.

1. Bad timing – judging the best time to sell is important to maximise the price received.

2. Not being proactive – waiting for the perfect deal is like waiting to win the Lottery– it is highly unlikely.

3. Not considering all your options – Discuss with your broker the potential target market and the sale options.

4. Being distracted – do what you do best – run the company. Let the professionals market your
business and negotiate the best deal.

5. Not knowing your value – what is your business worth now?

6. Where to next? – An important part of exit planning is answering that question. As soon as you start to think about selling, act on it as you are likely to be distracted and take your eye of the ball and stop running the business with all your energy.

7. Tax implications? – Your accountant should be part of your team implementing your exit plan.

8. It takes time – selling a business is much more complex than selling a house so allow plenty of time. Information has to be assembled, multi-pronged marketing strategies need to be implemented, legislative and tax implications need to be understood, and almost certainly there will be unexpected
roadblocks and challenges before settlement.

9. Hard work ahead- do not get overwhelmed with the task ahead. If you have an experienced team handling the process they will smooth the way and sort the problems.

10. Ensure your listed price is correct- Agents spend a life time educating their clients about value- when you are selling head your own advice.

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. To stay up to date with our latest listings, register here.

Ten questions you must ask when you do a rent roll valuation

1)    What are you valuing?

Is it the shares in a company, the assets of the business (rent roll, plant & equipment) or is it a part interest?

2)    Why?

What is the purpose of the valuation? Buy/sell decisions, merger, tax/estate planning, partnership or marital splits, litigation support etc.

3)    Which standard of value?

There is an accepted method of valuing rent rolls and sales goodwill.

4)    When?

What is the effective date of valuing the rent roll? Generally speaking rent rolls are sold on a fully leased basis, with the value being determined as at the date of settlement or within 7 days of the settlement date.

5)    What is the key information of the business?

Management agreement signed in the name of the correct entity, current financial information, staff/wage details, suppliers’ contract, systems and procedures, operational leases. Full information will unearth the value modifiers.

6)    What risks does the business face?

Competition, retention of key staff & clients, restrictive covenants, loss of major customers, technological or legislative changes, economic conditions.

7)    What intangibles drive productivity and profitability?

These need to be identified and assessed for transferability. They will range from contracts to relationships, client databases, and personal goodwill.

8)     Audited financial accounts?

For almost all SME the financial accounts will include “one-offs” or discretionary expenses that are not strictly necessary for the production of income, therefore the accounts will need to be adjusted. Also review the trends in the business’s figures? Historic data is a guide but is no guarantee of future performance.

9)    Which are the appropriate valuation methods to use in this case?

When selling a rent roll or business on WIWO basis there are a number of components that make up value; such as the length of time the agency has managed the properties, commission rates and ancillary fees, geographic locations of the properties managed etc.

What does the market say?

All valuations are opinions. The only true test of value is an arms-length sale on the open market. Data from actual sales of similar businesses provides a valuable guide. Is the business saleable?

BDH Solutions are rent-roll agents with over 30 years experience in connecting the right vendor with the right purchaser. To stay up to date with our latest listings, register here.