During negotiations for the purchase of an established business, it is inevitable that the aspect of goodwill will play a factor in the final price paid. That said, determining goodwill is anything but an exact science and can become a moving target during buyer/seller negotiations. There are however, certain factors that need to be taken into account and these can be unique to certain businesses. This article explains the concept of goodwill, and what to consider when negotiating it.

For many years the due diligence investigation was carried out by the buyer, on the seller. However, with the new dynamics in our country and the substantial increases in the buying of businesses in the SME market, it is often found that the buyer cannot raise the finances for the purchase, and often knows little about the business he/she wants to buy. This article therefore looks at due diligence from the seller's perspective. It is important for sellers to know how to control the buying process.

Many business people are involved in commercial partnerships, and are familiar with their rights and obligations in relation to their partners. However, not everyone is familiar with the rights and obligations flowing from co-ownership of an asset, as a recent court case (Claassen v Quenstedt [2014] ZAECPEHC 18) demonstrates. Here is what you should be aware of when considering co-ownership of assets in a commercial property.

When you have put so much into your own business, it's important to think about the company's future and your dependents' security, at the event of your or your business partners' death or disability. This is where a Buy and Sell Agreement would come into play. Buy-and-sell agreements eliminate uncertainty, since the surviving partner(s) pay(s) fair value for the acquired share of the business. Hence the needs of the deceased partner's heirs are also met. The surviving owners have immediate and unhindered ownership of the business.

The Franchise Association of Southern Africa (FASA) is a trade association for franchisors, franchisees and the professional organizations that service the franchise industry. Its aim is to develop and safeguard the business environment for ethical franchising in South Africa. FASA is the only recognized representative body of the rapidly growing franchise industry. FASA’s criteria for membership conform to international best practices and are acknowledged by government and the public at large.

There are a number of instances when you may need to determine the market value of a business. Certainly, buying and selling a business is the most common reason. Estate planning, reorganization, or verification of your worth for lenders or investors are other reasons. Valuing a company is hardly a precise science and can vary depending on the type of business and the reason for coming up with a valuation. This article looks at some of the common methods used to determine the value of a business.

One can understand the hesitancy of business sellers to provide confidential information to prospective buyers, but at the same time, they need to realise that the quality of information supplied will eventually determine the price paid. Selling a business should be a ‘two way’ street, and if handled properly, will result in both parties achieving their respective goals. Here are some tips to help you conduct better sales, whether you're a seller or a buyer.

Whether you are considering buying or selling a business in the near future, the importance of preparing for either of the two cannot be underestimated – for most people, the buying and selling process will only happen once in their lives, so spending enough time on it is vital. It is impossible to cover every eventuality that may arise during the buying or selling process, but solid preparation upfront will help ensure that you achieve your respective goals within a satisfactory time frame and with a more than acceptable financial outcome.

Negotiating skills are critical when wishing to buy or sell businesses. Here are 3 similar case-studies, which have a direct bearing on the necessity of being able to negotiate to your best advantage. If you don't get it right, you pay too much and inherit many liabilities you don't need and can be bulldozed into accepting things that you had no intention of conceding – you may not even know at the time that you are conceding them.

What makes a family business different to any other? Some of the world's most famous and successful businesses were started by families, including Wal-Mart, Toyota, Ford and De Beers. Many of the businesses that are now listed on stock exchanges globally, started out as family businesses. No doubt many other ventures were started, but failed to reach such heights of success. What makes them different, and do they face the same challenges as any other business?

The current economic crisis is a good time to take stock of your business with the view of establishing what you want to do with it, where you would like the business to be in 3-4 years time and how you plan to get there. Like most major investments, there will come a time when you need to sell and that largely entails making the investment attractive to a buyer – a business is no different. Here are some important considerations to help you improve your business.

Sales of businesses are a regular feature of the modern economy. Mergers and acquisitions occur all too often as businesses position themselves for a better share of the market. In all these commercial transactions, the interests of the employees should not be forgotten. This article answers the question: What are the current employees' rights when a business has been sold as a going concern?