May 9, 2018
We are often approached by clients to advise on the most tax efficient manner in which a shareholder can sell an investment in a private company. Typically, the parties involve a majority shareholder of a company that is interested in buying out the minority shareholders in the company and which will ensure that that majority shareholder becomes the single remaining shareholder of that company. In essence, two options are available through which a shareholder may dispose of a share in a company to achieve the above goal: it could either sell its shares to the purchasing shareholder, or it could […]
October 7, 2015
Ratio analysis can be used when financial information needs to be simplified to make it possible to interpret and compare the information. Banks often do ratio analysis when they need to decide whether to lend money to a client or not. If a business wants to open an account with a supplier, the suppliers often use ratio analysis to determine the financial health of the business before deciding if they will sell to the business on credit. In Part 1 and Part 2 of this series of articles on financial ratios, the limitations of using ratios have been mentioned. However, […]
August 11, 2014
Imagine your business if you or a key executive were to die unexpectedly. No-one wants to talk about death, and it’s the last thing most entrepreneurs think about when they start a business. It is, however, something that deserves a thought. Plan for the possibility now, and you will save your colleagues a lot of trauma and financial uncertainty while they are coming to terms with their loss. When a company’s leader dies unexpectedly there is a huge risk of losing everything. In an article Jim Murphy, a successful entrepreneur, shared what he had learned when facing the death of […]
July 8, 2014
Is your banker working hard enough to make a difference in your long-term business success? Partnerships can make or break a business, so select the bank for your partnership with business growth in mind. It will be rewarding to build a strong relationship with your banker – it will save you money on interest rates and lead to new business opportunities. Just ask the right questions. These tips can help you improve your current banking situation or find a bank that works for you. Make it personal It is always more satisfying to form strong personal relationships with the people […]
March 18, 2014
Family businesses are considered to be among the most important contributors to wealth and employment in virtually every country of the world. About 98% of businesses in South Africa are small to medium businesses, of which a majority are family businesses. James and Sarah have been avoiding each other like the plague for more than a week now. Sarah joined her husband James a year ago in his construction business as the accountant. They have been locked in battle since day one: About who must do what, how much time she can take off for home and children, finances, […]