About this event:

Are you thinking about buying a business? Looking for businesses for sale? Don’t know where to begin? Attend the Business Exchange Virtual Event and in 1.5 hours you will learn the ins and outs of buying a business in Canada and learn where to find a business for sale in Canada.

On July 20th learn from our expert panel on where to find businesses for sale, how to get business financing, legal and financial considerations, the benefits of using a business broker, and is franchising right for you.

If you are serious about getting into business, you won’t want to miss this event.

📅 Date: Wednesday, July 20, 2022

⌚ Time: 12:00 PM – 1:30 PM.

🎦 Event Type: Virtual Event. 

🎫 Admission: FREE to attend. Please make sure to register to get the access pass.

Reasons to attend?

• Avoid costly mistakes when buying a business or franchise
• Learn about the due diligence process
• Free legal advice that you need before starting a business
• Tips on structuring your business to reduce your taxes
• Learn about the business financing options available in Canada
• Benefits of using a business broker and realtor for the buying process
• Where to find your next business opportunity

Meet Our Speakers

🎤 Pamela Labelle – Business Exchange, CEO & President

Topic: Where You Can Find Businesses for Sale

🎤 Armond Azoomanian – Homelife/Response Realty Inc ., Broker

Topic: Benefits of Using a Business Broker to Buy a Business

🎤 Tyril Froese – MNP, CPA, Partner, Professional and Private Enterprise

Topic: Financials of Buying a Business

🎤 Frank Robinson – Cassels Brock & Blackwell LLP, Business Lawyer

Topic: Legal Aspects of Buying a Business or Franchise

🎤 Shawn Allen – Matrix Mortgage, Principal Owner

Topic: Getting Financing to Buy a Businesses

🎤 Ryan Hillis – Meltwich Hospitality Group Inc, VP of Revenue

Topic: Benefits of Buying a Franchise Business

These events always fill up fast so don’t wait!

Sign-up today: https://thebizex.com/blog/buy-business-canada

The session will be delivered via Zoom and full instructions will be provided by email.

The post Learn How To Buy A Business In Canada! Free Webinar Event appeared first on Business Exchange Blog.

STEP #1 – Deciding to Sell Your Business

Making the decision to sell your business is the first step in a series of processes to close the deal. Although it may seem simple, remaining confident in your choice is very important and will help solidify your motivations for pursuing an exit strategy. The most common question prospective buyers ask is: Why are you selling your business?

Knowing the answers will give you determination and help you in dealing with inquiries from prospective buyers.

Avoiding Seller’s Remorse: What’s your Why?

Your “why” is what will motivate you to create a strong and determined exit strategy. When deciding to sell your business, weigh out the pros and cons of selling your business and seriously consider your reasons and motivations. Staying confident in your decision will help motivate you to plan and execute a purposeful exit strategy.

Common Reasons Why Business Owners Decide to Sell: 

• RETIREMENT: Leaving the workplace behind to have a comfortable retirement.
• NEW OPPORTUNITIES: Deciding to try a new business venture or change industries.
• PEAK OF PROFITABILITY: Selling due to an upcoming decline in business.
• HEALTH & STRESS: Facing health challenges or feeling burnt out from work.
• DIVERSIFYING: Looking to invest and expand business portfolio.

Motivations & Approaches

Once you have come to terms with your “why”, it is time to start considering your selling motivations. Ask yourself:

• Are you willing to still be involved with your business post-sale?
• Are you looking to leave immediately after the sale?
• Are you looking to secure the highest possible price?
• What compromises are you willing to make?

Think about the most agreeable terms and conditions that benefit yourself, when selling your business. All of these questions need to be factored in when considering who will be buying your business. Try to align your financial and personal motivations with who you are considering as a prospective buyer.

Prospective buyers include:

Existing partners

Competitors

Outside individuals

Family members

Employees

Buyer Benefits 

Existing Partner – immediate sale & payoff, immediate departure, little disruption to clients/staff, may require ongoing involvement

Individual – immediate sale & payoff, strong selling price, no ongoing involvement required

B2B – strong selling price, immediate payoff, sale terms may require ongoing involvement

Goals and Objectives for your Exit Strategy

Based on your motivations and sales approach, develop goal statements and objectives for your exit strategy. Questions to consider:

• What are my motivations for selling?
• Who am I willing to sell my business to?
• How long are you willing to wait for a sale?
• What are my post-sale objectives for me and my business?

Develop a Goal Statement Using the Following Formula

Financial Objectives + Ideal Buyer + Time Frame + Post-Sale Objectives = Exit Strategy Goals

For example, a goal statement and objective for an exit strategy can look like this:

“I intend to sell my business for the highest possible price to an individual that has the financial and managerial capability to run my business. I would like to sell my business immediately within 6 months and have no involvement post-sale. I prefer to sell my business to a buyer that will retain employees and make no significant alterations to the business model.”

Each goal statement will vary depending on what is important for your specific exit strategy. Compromises to your goals and objectives may occur along the way but this exercise helps to generate a guideline to clearly define what you are expecting in a business sale.

STEP #2 – Preparing to Sell Your Business

Assessing The Situation

Before listing your business for sale, conduct an assessment to identify the strengths and weaknesses of your business and strive to amend any weaknesses to make your business more attractive.

Create a list of legal, financial and operational conditions. From there, assess the quality of these conditions and see where your business needs improvement.

A well-rounded business is more likely to be successful in attracting prospective buyers. Refer to the table below for your business assessment checklist:

Execute an Improvement Plan

Based on your business assessment, create and execute an improvement plan that will strengthen your business before sale.Consider the necessary steps required to improve your business and set a timeline for these improvements and invest in the resources.

Depending on the size of your business, on average it takes about 3 – 12 months to sell a business. This process includes preparing documentation, marketing your business, finding the right buyer and closing the sale.

Take time to improve your business because buyers will be assessing it from various perspectives such as legal, financial and operational. By executing an improvement plan you will create a strong vantage point for your negotiations.

As you strengthen your business for presentation to buyers, it is advised to keep your sale plans as quiet as possible. You should only share your sale intentions with staff members and consultants when necessary and should be followed with a non-disclosure agreement.

The reason why you want to keep your sale intentions quiet is because you risk creating uncertainty within the business, employees, clients, suppliers, etc. This uncertainty can devalue your business, while you try to improve and increase its worth.

Tips for an Effective Improvement Plan

Grow Your Profits
If you are planning on selling your business, it is wise to grow your profits as much as possible because your business worth is a multiple of its profit. Small businesses average about 2-3 times profit. Medium businesses are 3-5 times profit and large businesses can expect up to 5-10 times profit. The higher your profits, the more your is business worth.
Collect Your Documentation
Non-disclosure agreements, business plans, marketing plans, revenue/profit projections, financial statements (past 2-3 years), tax returns, leases, loan agreements, inventory, client contracts, insurance policies, product/service prices etc that are relevant to your business. Prospective buyers and advisors will be looking for this kind of information, so while you are executing your improvement plan, start collecting these documents to help prepare you for the sale.
Time is Money
Consider the amount of effort it takes to operate your business and also go through the business sale process. Are you prepared to continue operating, while actively looking to sell? Depending on your exit strategy goals, consider getting help from advisors.

Getting an Appraisal

After implementing an improvement plan, you will then want to determine the value of your business to make sure you don’t price it too high or too low. Find a business appraiser to provide a valuation of your business. You can get a professional valuation from local accounting firms, investment banking firms and business brokers.

Appraisers require formal documentation for the past 3-5 years such as: Business Plans, Tax Returns, Financial Projections, Legal Documents, Leases, Assets, Contracts, Agreements, Income Statements, etc. For best practice, make sure that the appraiser performing your valuation has access to the most current data regarding business transactions in your industry.

Finding the Right Advisors

When preparing your business for sale, it is important to assemble a strong team of advisors to help you navigate the sale process.

Advisors for selling a business include: business appraisers, accountants, lawyers, consultants and business brokers.

Every business sale requires a team of advisors, however the team members depend on the complexity of your business, your abilities and experience, as well as the amount of energy you are willing to devote to the sale process.

• BUSINESS APPRAISERS – Provides business valuation and determines reasonable selling prices.
• LAWYERS – Provides legal assistance during negotiations & necessary paperwork for the close.
• ACCOUNTANTS – Prepares financial documents necessary for business appraisals and prospective buyers.
• BUSINESS BROKERS – Assists in all stages of the purchase and sale of your business.

As a private seller, you would be responsible for all facets of the business selling process. Your team of advisors would consist of accountants, business appraisers and lawyers.

Selling your business privately allows you to save money. But operating a business and the selling process is a huge endeavor that requires a lot of time and energy.

Consider working with an experienced business broker because they manage the selling process and can connect you with existing potential buyers.

Advantages of Using a Business Broker

Industry Knowledge
Choose a broker that has experience in selling businesses in your industry. Every industry has a unique selling process, and by leveraging an experienced business broker you will accelerate the selling process. For instance, a business broker that sells dry cleaning businesses, may not know how to sell a restaurant with liquor licensing.
Marketing
Experienced business brokers have the knowledge in advertising and marketing your specific kind of business. Brokers can leverage different marketing channels that will yield the optimal volume of prospective buyers for you. Professional brokers should be able to advertise your business effectively and screen out the buyers for the business owner.
Time
There are many advisors involved in selling a business. Business brokers can save you time by coordinating with all the respective parties. They have experience dealing with appraisers, lawyers, accountants and buyers. While they take care of the business selling process, you can focus on improving your business to get the highest valuation possible.
Negotiation Power
Brokers are skilled negotiators educated on negotiating prices, terms, conditions and other aspects of the sale. Their job is to bring buyers, sellers and possible third parties, like landlords, together by mediating the transaction.
Protection
Business brokers are trained in legislation and the necessary paperwork in selling a business. Brokers will request the disclosure of a prospective buyer’s finances. This helps protect the seller by reducing the risk of prospective buyers defaulting on their finances. An experienced business broker will qualify the right buyers, which significantly reduces the chances of a business dealing falling apart.
Closing Fee
Business brokers charge a percentage of the sales price. This is called a success fee, which is based on a percentage of the closing price for your business sale. Although you have to pay the broker a commission, this is an incentive for them to sell your business as quickly and for the highest price possible.

Selling a Franchise

Due to the corporate system of a franchise, you have to go through the franchisor in order to sell your franchise business. Approach your franchisor and notify them of your intent to sell. Franchisors are accustomed to their franchisees exiting at some point.

Find out what assistance they can provide in the selling process, and if they are able to help you with a resale or transfer. The process varies significantly depending on what kind of franchise you own.

What are the Transfer Fees?

Check your franchise agreement for transfer fees. Some franchisors do not charge a transfer fee; others may charge transfer fees between $1,000 and $30,000.

What qualifications do Buyers Need?

Your franchisor must approve the buyer before you can sell your business. Qualifications usually relate to credit score, net worth and/or experience.

Rules of Thumb for Valuing a Franchise

Franchises normally share the basic rules of thumb in determining the sales price — i.e., what multiples of your gross revenue or cash flow you may be able sell your franchise for.

Will the Head Office Help Me Sell

Some Franchisors will take over the entire process and other franchisors do not want any involvement with the resale other than to approve the new franchisee. 

STEP #3 – Marketing Your Business for Sale

Confidentiality

In the business selling process, confidentiality is generally needed in order to reach your exit strategy goals. Giving away too much information can be detrimental in a number of ways:

Customers, suppliers and employees may become hesitant when a business is for sale. This can disrupt your current operations and therefore weaken your business valuation.

Prospective buyers may become hesitant about purchasing a business if they feel that too much sensitive information has been divulged to others.

Marketing with Confidentiality

Consider advertising by using blind ads and listings. Don’t share your business name until you’ve qualified prospective buyers and obtained their confidentiality agreements.

For example: PROFITABLE CONVENIENCE STORE FOR SALE GREAT LOCATION & ESTABLISHED CLIENTÈLE

Qualified buyers expect to be screened thoroughly before having sensitive information shared with them. Qualified buyers want to know that the business they are buying is carefully protected in terms of sensitive information.

Keep the conversation going and have patience through the business selling process. There may be a lot of back and forth with your prospective buyer, but make sure to release sensitive information only when you deem fit.

Give allowance for buyers to do their due diligence, as it can take them on average 30 – 90 days before making an offer. Continue exploring different prospects and always follow up.

STEP #4 – Negotiating with Buyers

Buyers want to acquire companies at the lowest possible price with the most favorable terms, while business owners aim to reap the rewards by maximizing the price and arranging for optimal seller terms. Despite the tension of these opposing goals, buyers and sellers share the same goal: to close the deal.

Tips on Negotiating with Buyers

• Request a Letter of Intent

Include a proposed purchase price, terms, conditions and warranties. This establishes a general framework for your negotiations on a final sale agreement.

• Consult with your Sale Advisors

Consult with your legal and accounting advisors to ensure that the sales agreement offers you the greatest financial benefit at the lowest tax liability.

• Never Settle for Just One Buyer

It is good to have a couple of prospective buyers so that you can start a bidding war, or just in case one of them falters.

• Have a Walk-Away Number ­­

This is the lowest amount you are willing to sell for. Crunch the numbers and do not be afraid to walk away if the buyer offers less. Sticking to your walk-away number can ensure that you are comfortable with the final deal.

• Cooperate with Due Diligence

Keep in contact with your buyer and create a plan for the due diligence process. Identify qualifying steps where sensitive information should become available.

• Ask Questions of Your Buyer ­­­

As a seller, do your due diligence and ask questions about their financial situation.

• Prepare Agreements in Writing

Potential buyers should sign a nondisclosure agreement to protect your business information.

STEP# 5 – Closing The Sale

After closing the sale, there is a transition period which typically involves a period of cooperation where the seller assists the buyer in transitioning the business. This typically includes introducing new owner to key clients, transitioning the financing and accounting, and answering questions on how to operate the business optimally.

About The Business Exchange

Established in 1998, The Business Exchange has over 20 years of experience specializing in lead generation in the franchise and business opportunity industry, in print and online.

We are a full-service advertising agency that connects business sellers to prospective buyers. Call us today at 1-877-337-1188 to learn more about our Businesses for Sale listings and Request a Quote!

The post How to Get The Most Money for Your Business appeared first on Business Exchange Blog.

Tips on Finding Good Business Brokers in Florida

First and foremost, Florida is a great state to start a franchise business or buy an existing business because of its good weather, low filing fees, and seasonal travelers. Florida consistently ranks as one of the best states for business buyers and business owners, thanks to its pro-business state tax policies, competitive cost of doing business and streamlined regulatory environment.

7 Tips for Business Buyers working with Business Brokers in Florida

Tip 1. The business buyers don’t pay the business brokers, the business sellers do.

Tip 2.Make sure to work with a business broker that works well with your lifestyle and aspirations. You don’t want someone who finds business listings that aren’t the right fit for you.

Tip 3. Ensure that your business broker communicates their findings with you and not make any false promises of income potential

Tip 4. Make sure you’re clear on what kind of fees you will be paying, sometimes, depending on the situation you may want have to pay for a small fee, sometimes you may not

Tip 5. Always work with a notable and licensed business brokerage to maximize your benefits

Tip 6. Before pulling the trigger, do your due diligence and ask your CPA to help you review the businesses’ financial information

Tip 7. Be honest about your financial comfort zones and investment capabilities. There is nothing more frustrating to a broker than to find out that you cannot invest

7 Tips for Business Sellers working with Business Brokers in Florida

On the flip side, if you’re a business owner wanting to sell your business to the right person, we offer the following 7 tips on finding a good business broker in Florida whom you can hire.

Tip 1. What Are the Broker’s Qualifications? Find out before you decide on hiring a broker whether they are certified

Tip 2. Does the Broker Have Good Web Presence? Visit their website to see what listings they have, how easy it is to navigate, and the kinds of businesses they offer for sale

Tip 3. What’s the Broker’s overall performance? How many businesses like yours and the sizes of businesses has this person sold?

Tip 4. How Does the Broker market their listings? Besides posting your ad on their website, how else will your businesses be advertised?

Tip 5: If your broker has a website, check out what his other customers are saying. Does he/she have a testimonial page? What about their Google and Facebook reviews?

Tip 6. What Does the Broker Charge? Do they have a high commission fee?

Tip 7. Ask yourself questions such as: How did the broker establish the asking price for a business like yours? What’s the average asking price received by the broker’s closed listings?

List of Questions you should ask when you are working with Florida Business Brokers

Here is a detailed list of questions you should ask when you’re working/seeking a business broker in Florida. This list applies to both Business Buyers and Sellers.

Question 1:

What sort of Certifications do you have?

For example, when you are talking to brokers in Florida, make sure you learn about their qualifications, ask them if they are a Certified Business Intermediary because having this credential is considered the gold standard in Florida Business. The more credentials a licensed Florida business broker has, the better for you, and the more likely you will find an ideal business to buy and vice versa.

Question 2:

How much traffic does your brokerage website have?

Traffic is key to a Google search… if there are lots of traffic going to a website, which means it ranks high on any Search Engine. The more traffic a website receives, the more impressions, click-through-rates, and conversions the brokers will have.

Question 3:

How many people visit your website to buy a business?

The idea behind this question is the same as Question 2, the more people visit your broker’s or brokerage’s website, the more closed deals they successfully bring.

Question 4:

If you’re located in any major cities in Florida, such as Fort Lauderdale Florida, Tampa Florida, or anywhere in South Florida, make sure you do a wide web search to see how many business listings are available in the State. The more listings a website or city has, the more potential buyers/sellers there might be!

Question 5:

After you find a suitable business broker, ask them questions like how many businesses have you sold or help to buy in the last year? Their answer will clearly indicate how good they are at their job. Find out whether the businesses they sold are related to what you want to sell/buy.

Question 6:

Is the Broker Promoting any of their listings? If so, how?

How does the broker conduct marketing initiatives to get more people on their site? Are they running any ads? Are they using Google Adwords and/or social media ads? The more reputable a company is with their marketing efforts and online presence, the better for you and your search.

Question 7:

The broker’s website or marketing materials may include testimonials from clients who have listed with the broker. Additionally, ask the broker to provide names of owners who’ve sold in the past and who you can contact for references.

Question 8:

How much do you have to pay?

Probably the most important question for your expense is how much will you have to pay your broker? Keep in mind if you’re a business buyer, you don’t have to pay, but if you’re a business seller, you will have to pay your broker.

Question 9:

Has the Broker Ever Been Sued?

Has the Broker ever been sued by any brokerages? What about clients, have they been sued by any dissatisfied clients? It’s very important that you work with someone who doesn’t have any negative experiences and thus ensuring yours will be a smooth-sailing experience.

How to Find Business Brokers in Florida

The Business Exchange has been helping Business Owners and Franchisors connect with potential buyers and franchisees. We have over 1000 listings of Businesses for Sale all over North America. On top of that, we have over 700 listings of Florida Businesses for sale. For a limited time only, we are offering a 30 day Free Trial for Business Brokers in Florida to post their business listings on our website. In the meantime check out our website for all the business listings we have in Florida.

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