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Selling a Business

How to sell your business checklist

How to sell your business checklist

Selling a business is a big undertaking that requires a great deal of thought, preparation, and planning.  A successful business sale can take several months to execute.  Only 16% of all businesses listed for sale actually sell.  Having a plan can increase your chances of having a successful transaction.  We have put together a quick…

Who Will Buy Boomer Businesses?

boomer business

A recent CBC report estimated that $1.9 Trillion in business assets in Canada are poised to change hands in five years. These companies are vital to the economy employing some 2 million workers. Boomer businesses are estimated to represent 15% of Canada’s economy. By 2022 this transfer will almost double to $3.7 Trillion as 550,000 owners…

Vendor Financing

vendor financing

In today’s financial markets it can prove difficult to obtain any form of financing on the purchase of a new business. This can frustrate many potential purchasers. Alternative forms of financing, if available, may be too expensive. A seller may offer financing to a buyer, often called a vendor take-back. The benefit to a seller is that…

Transactional Brokerage

transactional brokerage

When selling a business you will usually employ the services of a business broker. A good business broker will cooperate with other brokers so that the client is exposed to as many potential buyers as possible. Often, however, it is the listing broker who finds the buyer through their existent database and extensive marketing. When this scenario occurs…

4 tips to help you prepare to sell your business

4 tips to help you prepare to sell your business

It is not easy selling a business but preparing and paying attention to the details can assist in receiving a fair offer to buy. 1. Have the financial statements prepared up to date. Prospective buyers will want to see the past three year’s financial statements plus interim financials for the current year. If sales fluctuate month to month…

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…

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…

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…