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How to buy a business webinar – 26 May

Renwick Business presents: How to buy a business webinar Wednesday 26 May 2021 at 10am

Interested in BUYING a BUSINESS?

Join our FREE Webinar that covers everything you need to know about buying a business in South Africa. Learn how to identify the right business, verify business valuations, complete a due diligence and access funding. Complete the below form to book now:

BOOKING FORM:


May 6, 2021 / by / in
How to buy a business webinar – 28 April

Renwick Business presents: How to buy a business webinar Wednesday 28 April 2021 at 10am

Interested in BUYING a BUSINESS?

Join our FREE Webinar that covers everything you need to know about buying a business in South Africa. Learn how to identify the right business, verify business valuations, complete a due diligence and access funding. Complete the below form to book now:

BOOKING FORM:


April 7, 2021 / by / in
Benefits of using a business brokerage

When entrepreneurs start up their business, it always starts the same way. They have great plans regarding where to take it and how they will achieve it. However, the way it ends for everyone is different. Some will continue to grow the business they started, others will fall to the wayside without success at all, and others will consider the possibility of moving on by selling their business. If you have a business and find yourself thinking about the latter, then keep reading.

Why do owners sell their business?
There are multiple reasons for selling your business, but the most common is because business owners want to retire. When they don’t have a family member to pass the company down to but want to enjoy their senior years, selling is the most sensible option. Other common reasons include:

  • It is struggling to perform well
  • You are suffering from health issues
  • Partner disputes
  • There are new opportunities elsewhere

No matter what reason you have, you need to do it the right way. After all, this is not a decision to be made lightly. The question is, how do you know that you are not making the wrong decision? You reach out to experts who know how to. In this case, we mean business brokers.

What are business brokers?
Professional Business Brokers are advisors to both buyers and sellers throughout the entire process. A broker can assist owners looking to sell their business, acting as a neutral third-party in the transaction, ensuring the best outcome. As this is such a complex process, reaching out to a broker is the best decision you could make, and the reasons are simple.

Take the pressure off yourself
With years of experience and expert knowledge, our brokers can advise you throughout the selling process, taking the pressure off of you. Without the need for you to spend your precious time trying to understand every detail of the selling process, you can continue to run your business and have full confidence in the sale.

We are experts
As advisors to you, brokers like ourselves have in-depth knowledge of the process, from valuation to marketing and negotiation. As selling is such a complicated process, it is vital that you have experts by your side that consider the legal aspects. This takes years to understand properly. Therefore, to make the process as smooth as possible and not leave you in legal trouble, reaching out to experts is essential.

We can overcome problems
Not every sale is going to be smooth sailing. Problems will occur, and this is to be expected in such an intricate transfer. Our brokers know exactly how to overcome these problems, so you don’t have to watch as a sale slips between your fingers. Instead, we can prevent this, as we don’t have an emotional attachment.

Help you achieve the best outcome
Not only can we ensure that deal stays on track, but we can help you achieve the best outcome. Negotiation skills run through our blood, and this is what helps us ensure you get a fair market value. By turning to experts, you have a better chance of minimising the risk of a sale not closing.

List your business with us
If you want to make the process of selling easier, you need to list your business for sale on our website. Get in touch with us today and get your business on the right track to being sold: https://www.renwickbusiness.co.za/sell-a-business/

March 15, 2021 / by / in
How to buy a business webinar – 31 March

Renwick Business presents: How to buy a business webinar Wednesday 31 March 2021 at 10am

Interested in BUYING a BUSINESS?

Join our FREE Webinar that covers everything you need to know about buying a business in South Africa. Learn how to identify the right business, verify business valuations, complete a due diligence and access funding. Complete the below form to book now:

BOOKING FORM:


March 3, 2021 / by / in
How to buy a business webinar – 24 Feb

Renwick Business presents: How to buy a business webinar Wednesday 24 February 2021 at 10am

Interested in BUYING a BUSINESS?

Join our FREE Webinar that covers everything you need to know about buying a business in South Africa. Learn how to identify the right business, verify business valuations, complete a due diligence and access funding. Complete the below form to book now:

BOOKING FORM:


January 29, 2021 / by / in
How to buy a business webinar – 27 Jan

Renwick Business presents: How to buy a business webinar Wednesday 27 January 2021 at 10am

Interested in BUYING a BUSINESS?

Join our FREE Webinar that covers everything you need to know about buying a business in South Africa. Learn how to identify the right business, verify business valuations, complete a due diligence and access funding. Complete the below form to book now:

BOOKING FORM:


December 3, 2020 / by / in
How to sell your business webinar – 30 Sept

Renwick Business presents: How to sell your business webinar Wednesday 30 September 2020 at 10am

Interested in SELLING YOUR BUSINESS?

The webinar covers everything you need to know about Selling a Business in South Africa. Learn how to prepare your business to sell, understand business valuation methodologies, how to facilitate a due diligence and the sequence of documentation required throughout the process. Complete the below form to book now:

BOOKING FORM:


September 29, 2020 / by / in
Profitability Ratios: The bottom line

Profitability combined with positive cash flow is key to your business’s long-term success and viability. Profitability is important to the concept of solvency and to that of a going concern.

How well is your business performing? Does its performance seem to be getting better or worse? Is your business making money? How profitable is your business compared with its competitors? These are all questions you can easily find the answers to by analyzing your profitability ratios. These ratios are used not only to evaluate the financial viability of your business; but are also essential in comparing your business to others in your industry and to identifying trends in your business by analyzing the ratios over a specific period. Profitability ratios enable you to examine how effectively your business transforms sales revenue into profits and can be broken down into three commonly applied ratios: gross profit margin, operating profit margin and net profit margin.

Gross Profit Margin:
Formula: Gross profit / Revenue

Gross profit measures how much sales income a business has left over after it covers the cost of goods sold (COGS). Gross profit margin indicates the gross profit as a percentage of revenue and is calculated by dividing gross profit by revenue. This percentage value indicates the proportion of revenue that is not consumed by the direct costs of producing the goods or services for sale. A higher gross profit margin indicates efficient processes and that a business is successfully producing profit over and above its’ costs. A lower gross profit margin may indicate that there are problems within the business, such as overpriced production inputs or under-priced products.

Operating Profit Margin:
Formula: Operating income / Revenue

Operating income takes gross profit and subtracts all overheads, administrative and operational expenses. Operating profit margin measures how much profit a business makes in sales, after paying for variable costs of production but before paying interest or tax i.e. earnings before interest and taxes (EBIT). It is calculated by dividing operating income by revenue. This is a more accurate indicator of a business’s performance than gross profit margin, since it accounts for not only the cost of sales but also the other important components of operating income, such as marketing and other overhead expenses. If your company shows a low operating profit margin (especially if your gross profit margin is healthy), it might be a sign that you are spending too much on operating costs. By analyzing this margin, you can better assess your ability to expand your business through additional debt or other investments.

Net Profit Margin:
Formula: Net income / Revenue

Net income is your business’s total profits after deducting all business expenses including interest and taxes. Net profit margin measures what percentage of a business’s sales is actual profit, after accounting for the cost of goods sold, operating costs and taxes. It reveals how much of the money your business earns makes its way to the bottom line. A high net profit margin typically indicates a company that is operating successfully and doing a good job managing costs and pricing its’ goods or services. A business with a higher profit margin than its competitor is usually more efficient, flexible and able to take on new opportunities.

August 11, 2020 / by / in ,
Financial Ratios & Business Financial Health

Financial ratios allow you to evaluate your business’s performance, compare it with other similar businesses in your industry and uncover areas needing improvement. Ratios are used to gauge solvency, liquidity, operational efficiency and profitability of your business. Internal and external users rely on financial ratio analysis to get an in-depth understanding of a business’s financial position. Internally, it can be used by business owners or managers to monitor performance and pinpoint strengths and weaknesses from which new strategies, initiatives and goals can be formed. Externally, it can be used by financial analysts, investors, creditors, suppliers, banks, business brokers and potential buyers to gauge the future profitability and liquidity of your business.

While the advantages of making use of financial ratios are apparent, it is important to remember that no business operates within a “bubble” and as such, a number of external elements will make certain ratios more or less useful depending on the economic climate, government actions and market sentiment. A few important factors to take into consideration when analyzing financial ratios are as follows:

  • No two businesses are the same and so the way you interpret their ratios should reflect what sector they operate in and their size.
  • A business can change overnight which can render analysis of their historical performance irrelevant.
  • Many businesses are impacted by seasonality factors and not factoring this into the analysis can lead to a false interpretation of the results.
  • Financial statements are often manipulated to show a position which is better than the actual and any ratios calculated on such financials will also result in an incorrect analysis of the business.

Financial ratios can be broken down into four main categories: 1) profitability, 2) liquidity, 3) operating, and 4) solvency ratios. These ratios all work together and need to be applied and combined with other metrics in order to properly evaluate and analyze a business to get a complete picture of its’ financial performance and prospects.

We will be taking a closer look at these financial ratio categories in upcoming articles to ensure you have the necessary tools required to keep your business’s financial health in check

August 11, 2020 / by / in ,
How to buy a business webinar – 26 Aug

Renwick Business presents: How to buy a business webinar Wednesday 26 August 2020 at 10am

Interested in BUYING a BUSINESS?

Join our FREE Webinar that covers everything you need to know about buying a business in South Africa. Learn how to identify the right business, verify business valuations, complete a due diligence and access funding. Complete the below form to book now:

BOOKING FORM:


August 1, 2020 / by / in
Renwick Business