As a buyer, you are excited about the opportunity to purchase a business and confident you have enough money for its purchase. But do you have enough money to keep it “working?” If you plan to grow the business, do you have enough working capital to fund its growth? Growing businesses require more working capital than shrinking businesses as receivables are growing.
Raising kids doesn’t come easy. Neither does running your own business.Both provide significant life lessons and great rewards.
So, what about combining the two?
No, I don’t mean raising kids AND running your own business. Many of us do that already.
I mean having your kids run their own business. Or at least learn the ropes of what being in business means.
I was recently shown two articles on just that. One was "The Values Entrepreneurship Teaches Children" by Dale Turken; the other "Why I Challenged My Kids to Start Companies Before College" by Ray Sheen.
The key life lessons in Turken's article were:
Tagged Owning a business
IBBA Canada is a Chapter of the International Business Brokers Association (IBBA), an association for the professional practice of Business Brokers and Intermediaries
Proper pricing is a must when you go to sell your business. And that means an asking price that is reasonable and correct.
In a recent 2015 post, I noted that more mid-sized businesses in the Canadian market are turning to complementary acquisitions with fold-ins or add-ons that allow the buyer to add on the revenue of the acquisition without the costs the seller (and their smaller business) had.
As we enter the New Year with renewed resolve and resolutions, I've been asked to say more about these financial benefits. Think of them as goals for fiscal fitness!
Here are some 20 ways companies acquiring smaller firms reduce costs and gain operational efficiencies:
“Where Are All the Baby Boomer Sellers?” asks a new Axial Forum article by Robert Flynn.
Flynn notes that in the U.S., “business for sale listings (mostly Main Street and often with less than $500,000 annual revenues) on the major transaction sites, as well as the middle market business brokerage firm listings are down in almost every North East state we track compared to five ago.” Yet “the 2013-15 period was predicted to be the peak of the baby boomer selling boom.”
On the other hand, while we still have way more buyers than sellers in Canada, our market for buying or selling a business is heating up. And in that market, the older boomers are selling and the younger boomers are buying.
In early December, the Wall Street Journal proclaimed 2015 the biggest year ever in the U.S. for mergers and acquisitions.
At home, Canadian companies have been turning their attention to the domestic market with 66% of respondents in an October Ernst and Young Global Limited survey identifying the Canadian market as their primary focus for M&A. Some 57% were focused on cost reduction and operational efficiency—up from 31% one year prior—consistent with what our offices are seeing.
Save time and money by learning from an expert before you buy or sell a business in Canada. Over the many years I've been in business, I've been privileged to help hundreds achieve their dreams.
Greg Kells is President of Sunbelt Business Brokers, Inc., the Canadian offices of the world's largest and most successful network of business brokers.
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The Real Deal
As a buyer, you are excited about the opportunity to purchase a business and confident you have enough money for its purchase. But do you have enough money to keep it “working?” If you plan to grow...Read more
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In a recent 2015 post, I noted that more mid-sized businesses in the Canadian market are turning to complementary acquisitions with fold-ins or add-ons that allow the buyer to add on the revenue of...Read more