What makes one business better than another for you when you are buying a business? Some of the considerations are obvious. Others are not. As you explore the business landscape, keep these 12 markers for choosing a business in view.
You have a good sense of the size and type of business you want to buy and how such a business will help you accomplish what you want in life. You’re ready to make your vision a reality.
Tagged Buying a business
The time has arrived. You are now ready to take your business to market! You know what you want from your business and in your life and are making those a reality.
With the help of experienced professsionals—our team of small business experts—you have:
- addressed the actions that add value;
- determined the most probable selling price;
- completed the structuring and tax planning to minimize taxes when we sell;
- addressed risk mitigation, insurance and future financial and investment issues;
- joined a peer counseling group and are building a better business and a richer life.
It is time to put together a marketing package and plan, ensuring confidentiality is maintained and that all materials are accurate. So while our professionals have expertise in marketing, it is your responsibility as the business owner to review their work in detail.
So what are buyers looking for in a business?
Whether it’s their first purchase of a business or their 10th, buyers are looking for an ongoing income.
Not surprisingly then, they’ll be attracted by businesses with a proven track record of consistent financial performance with solid, growing revenue and earnings.
Tagged Selling a business
Most of the people who come to us to buy a business are first-time buyers. And likewise, most of the business owners who contact us about selling their business have never gone through the process before. Buying or selling, there’s a lot for them to absorb. And while we do our best to guide them each step of the way, the subject matter can be a bit daunting for those unused to the terms that come up as we help them get to their goal line.
We’ve pulled together the following "dictionary" with commonly used terms applied in buying or selling a business. And as a further reference, we’ve tied most of them back to blogs posts where they appear in context.
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.
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.
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.