Take the emotion out of critical business decisions, ask your accountant

 

We at CIB see regular examples where clients have an emotional attachment to a business transaction they are undertaking and we work with them to put this attachment aside so they can make the best objective decision possible.

Two recent examples are detailed below.

  • A business client needed to expand to a larger block of land and CIB analysed their business requirements and the area they needed to operate in. ¬†Following this analysis our client agreed on a particular area which had high future prospects for growth as well.

When it came to buying a particular block of the land in the agreed area, our client had concerns as the land cost was slightly higher than other areas. However as it was objectively agreed this was the right area for them, our client decided to proceed with the purchase.

Within approximately 18 months the value of the land purchased had increased in

value by $2 million. Through helping our client make an objective business decision they were able to enjoy the financial benefits of this decision.

 

  • A business client was experiencing a sustained downturn in their trading results, which if continued would lead to the closure of their company.

A partial competitor of our client had gone into receivership due to poor management rather than poor products.

Our client had the opportunity to buy this competitor for a substantial discount and with the financial support of a willing bank.

Our client was reluctant to go into more debt even though the business purchase would have had a number of benefits and would have paid for the debt in time.

After careful planning with CIB our client agreed to proceed and making an objective decision has benefited our client as the new acquisition is proving to be quite profitable.

 

To speak to an accountant that can help take the emotion out of a business decision, call us at CIB Accountants & Advisers and ask for Graeme Bellach or Joel Halbert on + 61 2 9683 5999.