FAQs
Transaction Advisory
Why should I use Black Pearl Private Clients?
The complexity in a business sale comes from the multiple ‘moving parts’ – developing a strategy, valuing the business, timing the sale, identifying the right buyer, maintaining confidentiality, negotiating price and terms, responding to due diligence and concluding the sale, which in itself involves extensive legal and other negotiations.
To achieve an optimal result takes excellent planning, a lot of work, the right attitude and, most importantly, the right advice. Black Pearl Private Clients has the knowledge, experience and track record to successfully guide you through this important transaction. The founder of Black Pearl Private Clients, John Collins, is a Chartered Accountant, Certified Financial Planner and Licensed Real Estate Agent who brings 18 years of hands on experience from within a global accounting firm and investment bank. This experience is your advantage in structuring a business sale that achieves your needs.
How much will it cost?
Black Pearl Private Clients’ fee to sell a business is typically structured in two parts. There is an initial, non-refundable fee, which confirms your engagement of Black Pearl Private Clients to act for you in the sale of your business. The second and more significant part of the fee is a success based fee, which is only payable upon the successful sale of your business.
In some instances where a business has unique characteristics that impact on the saleability of the business, Black Pearl Private Clients may structure the fee on a monthly retainer basis with a corresponding reduction in the emphasis on the success fee.
How long will it take to sell my business?
The sale of a business can take anywhere between three months and twelve months (or more in a small number of circumstances) from engaging Black Pearl Private Clients to complete. In our experience, the vast majority of businesses are sold between six and nine months from engaging us.
What is the process?
The sale of a business requires a number of key activities to be undertaken. These can be summarised as follows:
- establish your advisory team;
- develop a tailored sale strategy in partnership with you;
- prepare marketing documents, including a non identifying business summary, detailed Information Package and other required sale documents;
- establish and implement confidentiality protocols;
- identify multiple qualified prospective purchasers and progressively reduce this list to a preferred purchaser;
- negotiate the terms of the transaction through to completion;
- facilitate due diligence with the purchaser;
- complete the sale;
- maintain momentum throughout the transaction; and
- liaise with other professional advisers such as lawyers and accountants, as required.
To undertake this process in a professional and timely manner is complex, especially when the vendor needs to continue operating the business. Black Pearl Private Clients are experts at conducting this challenging process on your behalf.
Do you have a preferred industry and minimum transaction size?
Black Pearl Private Clients has a specific expertise in working with professional services practices (financial planning, accounting, insurance broking), although we can and have assisted parties from other industries where it makes mutual sense to do so.
Typically, the minimum transaction size for Black Pearl Private Clients to be able to add value is privately owned business of a value exceeding $1 million.
Can you help get my business ready for sale?
Experience allows Black Pearl Private Clients to very quickly assess the key characteristics that will maximise the value of your business. Where you need assistance implementing these business improvement and sale readiness strategies, Black Pearl Private Clients can refer you to professionals from within our network to assist you.
Can I use my own lawyer and accountant?
Where you have an existing qualified advisory relationship in place, Black Pearl Private Clients is pleased to work with them to achieve the best possible solution for you.
What is my business worth?
At the commencement of our relationship with you, Black Pearl Private Clients will undertake a market value appraisal of your business. This will provide you with guidance regarding the value of your business. Should you need a more detailed valuation to be conducted, Black Pearl Private Clients can arrange for this to be undertaken for you.
Succession Planning
Why should I use Black Pearl Private Clients?
In our experience, private business owners continually defer developing, documenting and implementing an effective succession plan because they are too busy running the business, don’t know who the appropriate successor is or don’t want to offend anyone in the family. This continues to be the case even though numerous researchers have concluded that businesses with an effective succession plan are more profitable and more efficient to run than those without one.
To achieve an optimal succession plan takes empathy, excellent planning, a lot of work, the right attitude and, most importantly, the right advice. Black Pearl Private Clients has the knowledge, experience and track record to successfully guide private business owners through this critical process.
How much will it cost?
The cost to develop, document and implement an effective succession plan varies according to the circumstances of each business and the extent to which the business owner wants to outsource the required work.
Black Pearl Private Clients will meet with you on a complimentary basis to understand your business and your needs. We will then prepare a project specification that sets out the steps required to develop your tailored succession plan. Each of the steps will be appropriately grouped to form a number of ‘mini projects’, which will be quoted upfront and agreed with you in advance of any work being undertaken.
This methodology empowers you to control the succession planning process and avoids any cost surprises.
How long will it take?
The timeframe to develop, document and implement a succession plan varies for each business we work with. The timing is dependent on various factors, including the number of succession options that need to be investigated, whether the potential successor already exists within the business or whether they need to be recruited and your own preferred exit timeframe. The process can take anywhere from twelve months to three plus years. In most instances however, significant progress can be made with a 12 month timeframe.
What is the process?
Black Pearl Private Clients’ succession planning process involves the following key steps:
- Establish your advisory team
- Evaluate your current position
- Set your goals and timeline
- Understand the value of your business
- Identify your successor
- Plan your strategy
- Undertake tax, legal and accounting analysis
- Assess and plan for any funding requirements
- Communicate the plan
- Implement the plan
To undertake this process in a professional and timely manner is complex, especially when the business owner needs to continue operating the business. Black Pearl Private Clients are experts at facilitating this challenging process on your behalf.
Do you have a ‘preferred client’?
Black Pearl Private Clients has a specific expertise in working with professional service practices (financial planning, accounting, insurance broking and legal), although we can and have assisted parties from other industries where it makes mutual sense to do so. No matter the industry you operate in, please feel free to contact us to discuss your needs.
Can I use my own lawyer and accountant?
Where you have an existing qualified advisory relationship in place, Black Pearl Private Clients is pleased to work with them to achieve the best possible solution for you.