Selling your business is a rewarding event, but negotiating a successful sale can be time-consuming, complicated and stressful. The good news is…we love it. We thrive on the business sales process and gladly take on the details so you can focus on maintaining your business and planning your post-sale future.
We are a team of business brokers based in BC. Our knowledge of the local market, combined with a comprehensive internet presence, will strategically—but confidentially—expose your local business to thousands of potential buyers.
One of the most important parts of working with sellers is helping them to empathize with the business buyer. The buyer is looking for absolute consistency and more importantly, CERTAINTY. Buying a business is about evaluating past performance and investing in future expected performance. We can help you view your business through the buyer’s lens. (See below for a list of what most buyers are looking for.)
THE SELLING PROCESS
Our time-tested, sell-side system is designed to streamline the process. We gather all the required information, discuss the best possible deal structure for you (including the tax implications with your accountant), prepare your business for sale financially and physically, and then prepare accurate documentation to value and package your business for motivated buyers who will, ideally, compete for your business.
Our team will guide you through the entire sales process by:
- Explaining the steps and what you can expect
- Suggesting the most effective ways to increase profitability and optimize post-sale tax structure
- Providing you with hands-on tools to prepare the business for sale
- Assisting in the valuation of your business to arrive at the most probable selling price (MPSP)
- Preparing a financial and marketing overview of the business that is a unique and defendable
- Marketing your business confidentially to over 150 websites globally
- Directly contacting buyers in our network who may be interested in your acquisition
- Helping buyers find financing and, where appropriate, immigration services
- Helping you negotiate deal terms and structure
- Performing due diligence and controlling the flow of information through a virtual data room
- Closing the sale and following up with you and the buyer to ensure mutual success and a win/win for all parties.
We provide a number of critical factors within the selling process:
- Anonymity Protection – We protect your personal and business identity by making sure information about your business is available only to prequalified buyers who sign a confidentiality agreement. We are comfortable requesting the financials of the buyer to confidently determining their motivation and likelihood of consummating a deal.
- Buyer Qualification – As BC business brokers, we know firsthand the problems with tire kickers and competitors looking for inside information or buyers who simply can’t afford to buy your business. We are diligent in weeding them out.
- Division of Labor – As the business owner, you can focus on running and growing the business while your broker qualifies and excites potential buyers then negotiates to get to the letter of intent (LOI). This way, you can avoid the risk of deteriorating the enterprise’s prospects during the sales process.
- Marketing – As experienced business marketers, we are experts in advertising and marketing businesses for sale, confidentially. We ensure that your business is presented in the best possible light, with the projected earnings for a buyer highlighted and fact-driven, thereby maximising your asking price.
- Resources – As professional business brokers, we have the tools and know-how to accurately value your business and then promote it among the largest possible buyer base. We use a combination of Pratt’s Stats, BRG, PeerComps and IBBA data, along with access to thousands of business brokers, to ensure your business is priced correctly and presented to the right buyers. Our online presence includes over 150 website listings that filter through the Internet’s largest business for sale marketplace.
- Dispassionate – We do not have the emotional attachment that owners have to their businesses, and this is a good thing. It allows for necessary objectivity. Our role is to find a win/win solution for you and the buyer. By being dispassionate about the state of the business within the marketplace, we are able to bring parties together in a way that allows for the highest odds of consummating a deal with the best possible terms.
- Negotiation – At Western Canada Business Brokers, we have excellent negotiation skills. Since our main objective is to sell your business, we will use our expertise to get you a better deal and in a much shorter time frame than if you were negotiating alone.
What is a buyer looking for?
Buyers are looking for a proven concept with existing clients, employees and sales. They don’t want the risks associated with a start-up, and they are looking for a high level of certainty.
Buyers will look at your business as an investment and will weigh the pros and cons of buying your business versus another. Because your business is unique and specific, it is difficult to determine if it is what a particular buyer is looking for until they have been qualified. However, based on our experience, we can say that almost every buyer will look at three main factors when considering the valuation of a prospective business:
- Return on Investment (ROI) - ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio. Essentially, ROI is used as a rudimentary gauge of an investment’s profitability.
- Debt Servicing - Most buyers will seek some type of institutional financing to purchase a business, as well as some form of seller financing to engage in a business opportunity. In Canada, our lending institutions are conservative and therefore hesitant to lend money for risky investments. They will often only issue a loan against the fixed assets. In Canada, we have the traditional banks and two government-funded programs, the BDC (Business Development Bank of Canada) and the Small Business Loan Program, where loans can finance the cost of:
- the purchase or improvement of land or buildings used for commercial purposes
- the purchase or improvement of new or used equipment
- the purchase of new or existing leasehold improvements (i.e., renovations to a leased property by a tenant)
- What is the minimum cost of living for my lifestyle/family? – Like most everyone else, buyers want to maintain or increase their standard of living. The cost for this will vary from one buyer to the next. One family may need $500k per year to satisfy their lifestyle, while another may require $50k, and their business choices will, at least in part, reflect this requirement.
If you are considering selling your business, contact us. We can help you determine the current value of your business and what steps you can take to maximize its appeal to a wide base of buyers. Together, we can plan and implement an exit strategy that will benefit everyone involved.
At Western Canada Business Brokers our fees are success-based. This means we only get paid when you do—at the closing table.