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,…

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…

Credentials matter

credentials matter

When you hire someone to help you buy or sell a business, they should have a specific and proven set of skills and experience.  Using a qualified professional is the best way to ensure that the deal is handled in a transparent, equitable, and timely manner.  Many people claim to be competent business brokers.  How…