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.

The most honest and best way to answer this question is: there is no best time to sell a business. Often times, it depends on whether the seller is truly ready to sell his/her business, two, if the business is making a profit, and three, the real reason why you want to sell your business.

Before you decide to sell, let’s explore four factors that will determine the best time to sell a business.

Factor 1: Is your Business Ready for Sale?

The first thing you need to evaluate is whether or not your business is ready to sell.

What we mean by that is, how is your business performing financially? Are you making money or are you not? Are you losing money or breaking even?

Obviously, if your organization is making money, you may not want to sell your business, and why would you right?

On the other hand, if your establishment is under-performing, then you need to be honest with your brokers and the people who may be interested in buying your business. Most interested parties will want to know why your business is failing.

Frequently, small business owners will turn to business brokers or investment bankers for valuation. Having an unbiased, third-party business valuation will also make your asking price much easier to defend during negotiations with potential buyers.

Factor 2: Can the Current Market Affect the Sale of your Business?

The answer is yes. Certain market factors will affect business transactions. Sometimes, these factors will benefit you as a seller, and sometimes it won’t. In general, take a look at two key questions to get a better idea of how market trends can impact your sale:

Question 1: Were there any businesses in your industry (similar to yours in both sizes and operations) that were sold?

Question 2: Were there any smaller businesses acquired by larger companies? If so, the businesses must be in amazing shape to pique the interests of big organizations.

When you review the number of businesses that are comparable to you, you will get an idea of what you could get for your business, this can be very valuable as it shows how much prospective buyers paid. However, this will only give you a general idea.

Factor 3: Market Situation and Trends

Similarly, there are a number of market factors that can provide a solid indication of the best time to selling your company:

• there’s a high volume of comparable businesses in your industry that are sold
• an upward trend in sales prices
• an upward trend of strategic acquisitions
• low tax & interest rates
• an economy that shows signs of growth and strength
• affordable debt financing

According to Fit Small Business, a thriving industry is a clear indication of a good time to sell. Although it may feel counterintuitive to sell a small business when the market is doing well, that is exactly the right time to do so. Think of it this way, if you are looking into a type of business to buy, you wouldn’t want to buy it when their market is under-performing would you?

If the economy isn’t doing very well, does that mean you shouldn’t be selling your business? Important advice for that is, don’t be discouraged from a poor economy. This applies especially to businesses looking for strategic acquisitions. Most companies who want to expand their long term businesses would acquire companies that are doing well during economic turmoil.

Factor 4: Are you prepared to sell your business?

Consider the two main reasons below:

Reason #1 Finances

Do you have enough money put aside after your business is sold? Granted, you will receive a lump sum of money but would that be enough for your future plans? Not everyone will want to retire, some people might even want to start another business, so ensuring you have enough capital is important.

When you decide to embark on a different business venture, money is definitely going help. If you don’t think you’ll have enough money put aside for that, then maybe it’s not the best time to sell your business.

Reason #2 Personal Attachment & Motivations

The second reason is more personal than the first, the business you built and started is your baby, you became very attached to it and so that is a good reason not to sell. Perhaps you started running this business from the ground-up and likely invested a significant portion of your life into its success.

On the flip side, you might be unmotivated and burnt out from operating your business, which is an honest internal reflection of how you truly feel about the business. All in all, understanding yourself and your motivation can ultimately save you from making a mistake you don’t want to make – selling a business you have built from scratch.

If you’re feeling burnt-out and just want to get rid of the business because you’re feeling anxious, that might not be the best solution to your problem. Think it through before you make any irrational decision.

To conclude, our best answer to the question: When is the best time to sell a business really depends on you as a business owner, how you feel with selling as an exit strategy, the market situation, your personal motivation, and business performance.

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 Business for Sale listings and Request a Quote!

The post When is the Best Time to Sell a Business? appeared first on Business Exchange Blog.

Are you looking to sell a business in 2020 and in need of expert advice? At the Business Exchange, we know there will be many questions that one has when selling a business. With the competitive nature of the market, business owners must be smart and strategic in assessing potential deals, hiring the right broker, and negotiating an optimal price for their businesses. To alleviate the stress of selling a business, we developed this guide to provide answers to some of your burning questions.

Sell a Business: All the Steps Involved

We recommend business owners the following steps to selling a business effectively and successfully:

Step 1: Determine the Value of Your Business

A third-party evaluation can provide a realistic estimate of your business’ worth and determine whether it’s a great opportunity. The seller pays a set fee for your business valuation that will include a review of everything from sales to receivables, inventories, and outstanding debt.

Step 2: Back up your Value with Clean Financials

Work with an accountant to present clean financial statements and tax returns dating back to at least three years to your potential buyers. Keep personal purchases off the business books.

Step 3: Plan an Exit Strategy Early

In life, there can be a lot of unforeseeable events that can occur, and this can be true for the business world as well. For instance, a business owner can suddenly become sick, but no one can take over the business. So, selling a business is a logical move. Secondly, competition from other small businesses nearby poses a threat. Therefore, a business owner needs to plan out his/her exit strategy. Experts believe the ideal situation is when an existing employee obtains the business. If you do sell to an outsider, you need to ensure you train and get them ready for takeover.

Step 4: Boost your Revenue Streams

Before selling a business, ask yourself, “What do I have to do to maximize my sales?” No potential purchaser will want to buy a failing business, in order to secure the success of your sale, you will need to do the following:

First, a smart seller will want to ensure the last three years of their sales numbers are up-to-date when presenting to buyers. Second, push out any unwanted and unnecessary inventories to create a fresh look for your business. Third, if you operate a retail store or restaurant, make sure your establishment looks modern and well-maintained. Lastly, invest your time and money on effective marketing and advertising efforts that will drive more sales. At the end of the day, nobody will want to buy a failing business, only a profitable business.

Step 5: Pre-Qualify your Buyers

Most business transactions are paid either by bank loans or third-party loans. A major reason many deals fall through is that sellers enter transactions with buyers who are unable to secure financing. Therefore, it would be wise to pre-qualify your buyers.

Most banks require the seller to offer a portion of their own money in financing the purchase, to ensure that the seller has vested interest in the success of the business under new ownership. Selling a business would thus become easier for the owner.

Step 6: Get Business Contracts in Order

Once you found a buyer you like and want to proceed with closing the deal, there is a list of legal documents and considerations that you must obtain and sign. This includes the purchase agreement, the sales price, the legal contract for the sale, and the purchase of selling a business asset.

Tips on Selling a Business

In this section, we offer the following tips on effectively selling a business and managing the aftermath of that sale.

Tip 1: Timing is Everything

Factors such as selling too early or too late, and not making sure the business is in great shape can drastically affect the outcome of the sale. A tip we suggest is to understand where you stand with your capitals before selling.

Tip 2: Hire a Broker

Hiring a professional who knows the ins and outs of the market, your business value and being able to sell the business are all good reasons to work with a broker. Business brokers’ job is to help their clients prepare and organize all the documents needed for the sale, to list the property, and market their businesses. Most importantly, they act as a mediator between the seller and the buyer. Hiring a broker saves time and energy because you can continue to run your business while they do the prequalification process for you.

Tip 3: Brokers’ Fees

Generally speaking, brokers take 10 percent of the profit margin, there are exceptions to the rule, however, and some brokers might receive more and some less depending on the agreement between the seller and the broker.

Tip 4: Create a Sales Package

Several documents go into the Sales Package, first, you will sign a nondisclosure agreement with the buyer, which protects you from critical information about your business being leaked to competitors. You also want to include an executive summary of your business, the selling-memo summary, and a more detailed profile describing the business.

Tip 5: Evaluate your Business

Your broker can evaluate the value of your business, but sometimes a professional appraiser might do the job better, in that, their services include offering a more accurate number and assess the market in which you’re selling in.

Tip 6: Minimize Taxes

There are a couple of ways a business owner can lower their tax accruement. For example, they can arrange for seller financing, which is simply a loan that is offered by the seller to the purchaser or by spreading payments over longer payout terms. 

Tip 7: What Happens After the Sale

More often than not, the seller is willing to provide financing for the purchaser, whether in an earn-out format or loaning situation. In fact, banks want to see a note from the seller indicating that they are still part of the game if they agree to finance.

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 Business for Sale listings and Request a Quote!

The post How to Sell a Business: The Ultimate Guide appeared first on Business Exchange Blog.