Do your M&A Advisors or Business Brokers have the right tools?

The technology landscape has changed dramatically in the last few years, especially after the emergence of cloud-based applications. While the M&A Industry is relatively too small to monetize specialized software, a few companies are now dedicated to solutions for Business Brokers and M&A specialists. Despite their low cost, these web-based applications are revolutionizing the whole M&A profession.

New Customer Relationship Management (CRM) Systems specially designed for Advisors not only help track all interactions with potential buyers but also store, organize and deliver all information pertaining to individual deals (Data Rooms). Instead of using email as an information delivery… Continue reading

Calculating Your Company’s Goodwill Value

What is the value of Goodwill? How to calculate the value of goodwill when selling a business? Could company Goodwill have no value at all or even a negative value?
This article tries to answer these questions while recognising that the accounting definition for the term Goodwill is certainly not very intuitive to most business owners contemplating the sale of their companies. Continue reading

Preparing your Business for Sale – Lessons to Learn from John Warrillow

John Warrillow is a Canadian entrepreneur, author and speaker focused on the field of exit planning and the sale of small and middle market businesses. John initially failed the first time when trying to sell his own business. His business was extremely depending on him and was very difficult to transfer. Most his potential buyers were worried that they could not maintain the business’ profitability if they were to acquire it. After radically transforming his business to a sell-able one, John was able to sell it at a price he was satisfied with. He then decided to use his learning… Continue reading

Tax Implications of Selling a Business in Ontario, Canada

This post discusses how the sale of a business can be structured and the tax implications of each structure. In general terms, the sale of shares is very favorable to the Seller from a tax perspective but unfavorable to the buyer. On the contrary, asset sale will cost the seller large amounts of tax but will be good for the buyer over the long term. Continue reading

A Business Seller Should Not Act Like a Car Salesman!

Car salesman approach is an outdated approach that is very ineffective in selling a business. Business buyers expect the business to be imperfect and become very suspicious if the seller depicts it as perfect. Both buyers and sellers will waste a lot of time and money if this approach is used. This post explains why showing both sides of the business is the most efficient way of selling it. Continue reading

What Does Economic Recovery Mean for Business Sellers?

When the economy is recovering, most business owners ready to sell their companies tend to wait until prices increase. This attitude could backfire and these sellers could be trapped into selling at much lower prices than they could ever have expected. This post explains some of the reasons why waiting for the perfect conditions to sell the business is generally not a good idea. Continue reading

Business Valuation in Toronto

This article describes the valuation methodologies that are most commonly used by business brokers and accountants for the sale of small and middle market companies in the Greater Toronto Area. These methods are Earning Before Tax Depreciation and Amortization (EBITDA) multiples, Seller Discretionary Income (SDI) multiples and Net Asset Book Value Method. Continue reading

How Long Does the Sale of a Business Take? 7 Key Variables

The length of time it takes to sell a business at a reasonable price depends on many variables such as price, the economy, seller’s emotions, luck, business trends and seller’s honesty. This post details these different factors. Continue reading

Selling a business in a Small Ontario City Outside Toronto GTA

Selling a business in a city outside Toronto GTA is very challenging. It’s difficult to find the right buyer among a very small population. Business owners looking to sell their companies should spend extra effort to prepare their businesses for sale. Hiring a good business broker with the right Internet skills can certainly advertise the business to a much larger audience and increase the chances of success. Continue reading

Selling a Lower Middle Market Business

There are some important differences between the middle market transaction and the small business sale. Middle market companies if prepared for sale correctly can sell for much higher profit multiples than small businesses. Middle market business owners looking for an exit strategy should hire capable professionals to help them in the complicated task of selling their companies. Continue reading