Feb 2019 4 Minutes
We Do More Than Just Value Your Business
By Joe Lamhut FCA, Director
Joe is a Director of Walker Wayland WA and Walker Wayland Health. He has over 40 years’ experience, mainly in the areas of business development, business strategies, business valuations, due diligence assignments and business entity structuring for allied Health businesses.
I am sure many of you would know Walker Wayland Health as valuers to various health professionals including; Pharmacists, Dentists, Medical centre practices, Medical specialists and Vets. Walker Wayland Health is accredited by all the major banks to perform valuations for their security lending needs.
What you may not know, is that Walker Wayland Health provide a core of other services, not just valuations. These services include:
- Due Diligence reports on businesses for the intending purchaser
- Profit improvement strategies
- Benchmarking and ratio analysis against industry, and our own data base
- Preparation of business plans
- Business succession
- Estate planning
- Structure advice
- And many more including ‘boring old’ taxation planning and preparation
For many health practitioners, the thought of working on their business is more daunting than it should be. To make it easier, during the preparation of business valuations, Walker Wayland Health can identify areas that can improve the performance of a business and also increase the value of that business in the future.
An example of these identified areas are;
Total overheads need a detailed review. Look separately at the ‘salary’ vs the ‘non salary’ parts. Keep spending enough to properly promote the business and to make your people as productive as possible. Manage overheads through annual budgets monitored monthly.
Low net profit margin does not leave much scope for you to absorb any 'surprises' (e.g. a new competitor, or a sudden lift in costs, or a drop in sales). Work on either the gross profit margin or the overheads side of the equation, to lift your result.
Employee Wages and Salaries:
Your wage expense is higher than it should be. Check your gross profit per person to see if you are overstaffed, and also check the average salary you are paying to each person. That will show which part of the equation is causing a problem. The roster may also need attention.
Gross Profit per Person:
Low gross profit per person can be fixed in many ways - lift prices; improve purchasing policies and stock control; achieve more sales with the same people and so on. This is a critical ratio, so watch it closely.
Walker Wayland have been able to help several businesses implement strategies that resulted in an improvement in cashflow, profit and value.
For you, we aim for Total Solutions, Peace of Mind.
Read below what some of our clients have to say:
With digital disruption and the automation of most aspect of the traditional accounting process, Walker Wayland has been able to shift client interaction to planning, compliance and discussions about business structures. This has made interaction much more efficient, but also allowed a greater focus on looking forward to economic and business trends, rather than looking backwards at compiling information and records. As a small business owner, this is the way I like to do business.
From the first day I met Juanro and Iggy I knew Walker Wayland were not only going to be my chosen accountants for my online business, but near enough business partners.
Their advice and guidance has dramatically helped scale my business and create extra business opportunities. I have referred many fellow business owners who have also had great results from Walker Wayland.
If you want an accountant you can trust and help grow your business, I highly recommend the team at Walker Wayland.
Brett Gillespie, 24-7tradies.com.au