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It ain’t rocket science! It ain't rocket science!Returning from a conference in Queenstown last month I had the good fortune to sit alongside the owner of a very successful independent real estate office. She started the business from scratch only 2 or 3 years ago and already commands a major market share in a very competitive area. "What's the secret of your success?" I asked. She thought for a minute and then said, ?Hard Work!? She also heaped praise on her sales team and support staff ? many of whom she takes to overseas conferences as a reward and an investment. Her third reason for success was her commitment to her local community - particularly the schools and certain charities. These sponsorships and support rapidly raised her profile in the area ? a very cost-effective branding exercise. Funny, there was no mention of technology - just doing the basics consistently and persistently. Buy-Sell Agreements We recently provided an opinion of value for a professional practice who were contemplating selling some shares to a key employee. The senior partner asked if we could also provide some information on valuation methodology to assist with the drafting of a shareholders agreement. We do not give legal, accounting, tax, employment or licensing advice. We like to stick to our knitting and avoid litigation. However, as well as advising him to consult with his legal advisor we referred him to an excellent article by Christopher Mercer in one of his recent newsletters (www.mercercapital.com). This confirms the importance of a clear, written agreement right from the commencement of the partnership and of a regular review and update. He points out the dangers of formula pricing (as we have seen with accountancy practices in recent years), endorses a single appraiser approach and outlines the critical issues that should be considered. What's hot... food businesses Cafes, restaurants, and fast food continue to account for almost 50% of our business sales. They are simple (but not easy) cash-and-carry businesses to run. At the lower end of the market they can be ideal for first-time buyers or for immigrants with limited English skills seeking cashflow opportunities. At the upper end of the market sale prices in excess of $1,000,000 are not uncommon and profits can show an excellent return on investment. The foodservice industry is a growth sector. There are over 10,000 outlets nationwide and sales have risen 51% in the last 5 years-from $3,176 million to $4,800 million. Over 80,000 people are employed in the sector and this is projected to grow to over 146,000 in the next 10 years. Emerging trends are diners preferring smaller portions, identification of suppliers of menu items, and possibly calorie counts. Pizza takeaway sales have doubled in the last 5 years. Thank you... we are indebted to the Restaurant Association of New Zealand for these facts and figures. |
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