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Factors That Influence Price

Factors That Influence Price

It is not a simple task to evaluate the suggested sales price of a business. The process itself can be very subjective. One way to establish the value of a small business is by the income method, the cashflow, often called Sellers Discretionary Earnings, SDE. A multiplier is then applied to the SDE to arrive at…

Start planning your exit strategy today!

exit strategy

I recently read an interesting article published by Gary Ampulski from Midwest Genesis, a management advisory firm based out of Illinois and Wisconsin. The article, “There’s a Perfect Storm Approaching for Exiting Business Owners”, reviews the implications of the current demographic of small business owners in the United States. Numbers released by the US Census…

Franchised pet food store for sale in Calgary area

Franchised pet food store for sale in Calgary area

Location:  Greater Calgary Area Business type:  Pet food store Price:  $75,000 + inventory Revenue: $750k Years in business:  5+ years Description Franchised pet food store for sale in greater Calgary area.  This established store has been in operation for over 5 years.  70% of the business is generated through the sale of quality dog food…

SW Calgary Women’s Boutique for Sale

SW Calgary Women’s Boutique for Sale

Location: SW Calgary Business type: Retail Price: $42,000 + inventory Revenue: $200k+ Years in business: 3 years Description Conveniently located in SW Calgary, this women’s boutique is close to downtown and situated along a major transit line. The boutique sells affordable and fashionable clothing, accessories, and shoes that appeal to women of all ages. This…

Signing Leases

Signing Leases

One of the most common challenges we see when evaluating a business is that the rents are too high compared to the volume of business. One case recently was a convenience store that was paying 50% of the gross margin earned to the landlord. Once other expenses were paid, the owner was really only working…

7 Steps for Joint Venture Success

7 Steps for Joint Venture Success

Joint ventures are a common way for individuals to invest in business or real estate. In the simplest form, one will provide the labour and work the opportunity while the other one provides cash and remains silent. Here are 7 steps to follow to ensure success: 1. Solidify the Relationship Review your independent goals. What…

Understanding goodwill

Understanding goodwill

Goodwill is often a confusing term when a business comes up for sale. The value of a business, or selling price, is based on the cashflow that it generates. The business broker will evaluate the company on calculated cashflow after adjustments are made to the reported income statement. The sales price less the total assets…

Businesses want to own their Premises

Businesses want to own their Premises

With landlords charging ever escalating rents that are eating into business owners profits, many business owners are looking for options where they can buy their own premises. Business owners would rather pay themselves rent than somebody else, build equity, and control their own destiny. They will benefit from the value of the fixtures and fittings,…

Do you have what it takes to succeed in business?

Do you have what it takes to succeed in business?

The one trait the majority of all millionaires have in common is that they owned their own business or had a real estate portfolio. Failure rates are high for new businesses with over half of them out of business within five years. Here are the skill sets that successful business owners say are critical to…

Buying an existing franchise

buying an existing franchise

Many existing franchise locations are selling for 50% less than the original franchise cost. Why is this? Is it the location, market health, the product, management style, managerial experience, upcoming expensive renovations demanded by the franchisor, or lack of franchise support? A recent example is where the franchisor was going to force renovations of $180,000…