Performance Business Brokers Presents:

A great opportunity to buy an established growing business in Bonnyville has just been listed for sale.

This Spa Company is a full retail outlet that sells, installs and repairs the top brand names in the hot tub industry at great prices. They also sell outdoor structures, Steam Showers, and cedar accessories.  For your indoor enjoyment they also retail pool tables and games room furniture and furnishings.

Great Opportunity to own a thriving business in Grassland Alberta!!! Wally’s Fast Food Burger Restaurant is for sale!!

If you have traveled up Highway 63 to Fort McMurray you will have probably stopped at Wally’s Fast Food for one of Wally’s famous burgers and fries. Wally’s is the last stop before travelling another couple of hours to Fort McMurray and the first stop traveling out of Fort McMurray. This place is a gold mine situated right on the highway.

Wally is looking to retire and is selling this super busy Quick Food Burger Restaurant.

This burger restaurant offers their customers the freshest burger around, with additional items for the “non-burger” customers. Well known Hamburgers established to eat in or takeout. Wally’s restaurant in Grassland Alberta specializes in fresh burgers, hand cut fries and the freshest ingredients. The kitchen facilities include a 12ft hood fan, 2 deep fryers, pizza ovens and walk-in fridges and freezers and much much more restaurant equipment. Easy counter service operation, fully equipped. The restaurant is 2400 sq.ft. with seating inside for 30 customers. This is a turn- key operation in an outstanding location with the opportunity to expand. The building and land is available for sale if desired.

Repeat customers, walk-ins, local and tourists are the many happy clients Wally servers with great reviews. One such review from Urban Spoon reads:

“This is “the” place to stop on your way to or from Fort McMurray. This is your classic family style burger joint and they do what they do very well.
Three of us stopped in and grabbed a few things. The smell of fresh beef on the griddle and fries bubbling away in clean hot oil was a welcome treat. The shakes were amazing and the onion rings as good as any diner that makes them well. The fries appeared to be fresh cut which is always a plus. The burgers were great. I’m not a mushroom burger fan but my buddy who is raved about it. I got the Wally burger, the house special that boasts 2 huge patties and the works. It was massive but I proudly & happily powered through. Next time through Grasslands I’m definitely stopping back in. “

Check out Wally’s other reviews on Yelp and Urban Spoon.

http://www.urbanspoon.com/r/72/1602243/restaurant/Alberta/Outside-Edmonton/Wallys-Fast-Food-Restaurant-Grassland
http://www.yelp.ca/biz/wallys-fastfood-grassland

For more information, please contact Dwight Lester at Dwight@performancebb.ca or call us today at 780-756-2990, http://www.performancebusinessbrokers.ca/

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Determining If You Have a Sellable Business that Will Attract Buyers, It is Not Always About the Price

By Mitch Biggs

Over the years I have had the pleasure of engaging many business owners and buyers regarding buying and selling businesses. Sure there are industry multiples, rules of thumb and valuations for determining a price. But what are the things that a buyer really evaluates when scanning the business horizon for their next investment? I have narrowed it down to three fundamental things regardless of price.

The three key factors a savvy buyer evaluates are:

1. Is the business profitable?   2. Will the business run well without the current owner?   3. Are the financial records adequate?

Many business owners get a little nervous showing their financial statements. One of the best kept tax secrets is owning a business. A well run business with a good book keeper or tax accountant will show great cash flow and modest profit. Buyers not only understand that fact, they are attracted to it. There is nothing wrong with showing a net operating loss as long as the business has strong cash flow. Business owners do not get extra credit for overpaying their taxes. High debt combined with a net operating loss will chase buyers away.

Buyers are attracted to businesses that are immune to the owner’s skills. Clearly there must be basic business management in place. What I’m referring to here is the critical elements of success must be able to thrive under new ownership. For example, if the owner is successful due to their active involvement in a key process, buyers will often pass even if they have the same skill set. Think of it this way. It is the difference between an artist and a painter. Painters are more about process and can be duplicated. Artists are the brand and take a piece of the business with them when they leave. One exception here is when a Private Equity entity assumes ownership and the “artist” remains in place.

In today’s environment with nifty software applications, financial records are typically not an issue. A simple profit and loss statement combined with tax returns are sufficient in most situations. If the business offers employee benefits, make sure you check the contract language to determine if “change of control” creates any lump sum payouts. Buyers want cash flow and leverage. Paying off key employees can be a deal breaker.

Before you begin the journey of determining the price tag for your business, make sure you have these three critical components in place. Do not underestimate the time it takes to market and sell a business. You should begin serious preparation 1-2 years in advance. Buyers always come to the table with a healthy dose of caution, but the deals that are consummated are inked with mutual respect between buyer and seller.

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

What does a Business Broker do?

The short answer is we facilitate the sale and purchase of the business.

Our job starts with education, that is, educating the seller and the buyer on just what is involved in selling and buying a business.  Buying and selling a business is subject to vigorous financial scrutiny, legal conditions, requires confidentiality and is not to be underestimated.  A limited understanding of this process may result in substantially undermining the final sale price.

Performance Business Brokers are involved with buying and selling businesses every day – it’s what we do.  It’s quite possible, on the other hand,  that the seller or buyer has never worked through this process before.  Buying or selling a business can be a huge decision that in all likelihood will change your life, it makes sense to work with someone who has the experience to guide you through this complex process to ensure your success.

What we do for the Seller

We help the seller to determine an appropriate price for their business, we compile an in-depth business memorandum, we create and prepare the marketing strategy, then interview, educate and show the business to qualified buyers.  Throughout the process we keep the seller up-to-date with everything that is happening and provide advice accordingly, we save the seller time and stress.  We draft and present all offers, pointing out the weaknesses and strengths of each, we negotiate.  We assist with the due diligence process and help with the hand-over of the business to the successful buyers.

What we do for the Buyer

We meet with the buyer to determine what their needs are and to educate them on the process they are about to embark on in order to successfully buy a business.  We qualify the buyer financially to ascertain what amount they can invest in a business opportunity.  We match the buyer’s criteria with the criteria of different businesses and then we’ll present these business opportunities to the buyer.

The sale or purchase of a business is a major event and a Performance Business Broker can help make sure it’s a successful one.

By using an experienced and professional Business Broker you’ll have the confidence and peace of mind that you negotiated the best price and on the best terms available.

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

Performance Business Brokers presents: Riverhills Lodge and Outfitting

Are you looking to buy a business that offers multiple revenue streams and also doubles as your home. This log lodge with its accommodation and bird guide business may be just what you are looking for.

Riverhills Lodge & Outfitting is located just outside the Village of Empress, http://www.villageofempress.com/ which lies in the south-east corner of the Province of Alberta. Due east of Calgary on the Alberta/Saskatchewan border. The lodge is situated on 24 acres of traditional prairie grass overlooking the South Saskatchewan River and its surrounding hills.

The log lodge has all the modern amenities to accommodate a very comfortable stay. Home-style meals are prepared daily for all guests.

The log lodge is an impressive 4200 square feet with an open design. The lower walkout level has five bedrooms sleeping two people in each, with a large bathroom that includes individual washroom and 3 shower stalls. In the middle of the lower level is a common area with a pool table and dartboard for everyone’s enjoyment and pleasure.

The lodge offers two revenue streams, guided upland game bird hunts between September 1 – October 31 each year and general lodging for work crews, corporate retreats for up to 16 people throughout the balance of the year.

For those wishing to fly direct or charter a flight into Empress, the Town boasts a 3000ft. paved, lighted runway with a reference elevation of 2211 ft.

Riverhills Outfitting offers fully guided hunts for Hungarian Partridge (Gray Partridge) and Sharp-Tailed Grouse and Pheasants for a fee of $1635 per person for 3 days. Birds are found in virtually all directions from the lodge. Huns and Sharp-Tails have similar food sources, therefore it is not uncommon to flush either specie in the same location. Most of the hunting is done in a walk up style using flushing and or pointing dogs.

Guided big game hunts can also be added to the revenue streams of the lodge with the purchase of Big Game tags.

With the Keystone XL pipeline going right past the lodge the purchase price can be made back on lodging crews for that one project.

You can view their Web Site at: http://www.riverhillsoutfitting.com/ or http://www.riverhillslodge.ca/

 For full information, please give us a call today at 780.756.2990 or email us at info@performancebb.ca !

Who Are Your Organization’s Entrepreneurs?

by Bill J. Bonnstetter and Ron J. Bonnstetter

How useful would it be to identify the problem-solvers within your business? They’re called entrepreneurs, and not all of them are created the same. The ability to identify entrepreneurs empowers organizations to effectively manage their workforce. Through research, we’re beginning to learn more about spotting star performers who would otherwise become disengaged and flee — taking their new ideas with them.

Identifying these individuals is possible long before they enter the workplace. In fact, 42 percent of entrepreneurs have determined they want to own their own business before the age of 12, according to an ongoing study run by our company, Target Training International, of engineering students from 18 major U.S. universities.

Early findings from this research describe two types of entrepreneurs emerging:

Entrepreneurial-Minded People (EMPs): They tend to work well in teams, have an organized workplace and enjoy consistency. These individuals are happier within organizations or within a group of people working together to achieve a goal.

Serial Entrepreneurs (SEs): The second group is made up of potential serial entrepreneurs who have a desire to own their own business. Serial entrepreneurs tend to be more individualistic, have a greater sense of urgency and a desire to control. They have demonstrated an ability to sustain a business past the first year, into the higher growth job production years of a young firm.

Both entrepreneurial types are identified by a distinct challenge-orientation and improvement-focused mindset. But they differ in their attitudes towards control. EMPs are less concerned with the amount of control they can exert. They are happiest when they work collaboratively on a task, in a team, striving for solutions to complex or recurring problems.

The SE wishes to have ultimate control over her life and business. While happy to set direction for a company or team, serial entrepreneurs need to feel that their employer is not limiting their destiny.

Once you identify certain performers as SEs or EMPs, it’s your job as a manager to retain them.

Make sure they have a forum where their ideas can be heard. When an SE shares his vision and is met with rejection, he will become disengaged and will likely resent the organization. He is also likely to not only plot his exit, but how to redress the rejection he experienced. That can translate into taking their ideas to a competitor or becoming a competitor himself. Similarly if an EMP is not allowed to engage in the problem-solving process or is asked to work independently, the same is likely to occur.

But how do managers identify entrepreneurial types? It’s often helpful to put these questions to use, especially during the hiring process or a performance review.

1. Describe your career goals. The EMP’s answer would more likely indicate he could care less about being in management and is happy where he is or where he is applying for. The SE will tend to say she is looking for advancement.
2. Describe your professional strengths. An EMP will focus on strengths directly related to the job in question. An SE will talk more about leadership and personal identity.
3. Describe things you’re not good at. Honesty is important for both. Listen closely: If she claims to not have any weaknesses, she is likely more SE-driven. The more weaknesses he confesses to having, the more EM-driven he is.
4. What activities do you do to keep current in your profession? The EMP is interested in keeping up within his profession and industry. The SE is more focused on keeping up on broader scope, going beyond just her career and may discuss things she is reading, experiencing or sharing.

Entrepreneurs — whether EMPs or serial — already possess the behaviors, attitudes, and values to build successful businesses. Finding out whom within the workforce possesses the traits of an entrepreneur — and which type they are — will allow business leaders to work with their unique approach to business. Recruiting and retaining entrepreneurs will pay big dividends not just for individual companies, but also for the economy as a whole.

Brought to you by,

Dwight Lester, Performance Business Brokers, Edmonton Alberta

The Success Small Business Franchisee – A Solid Plan for Start Up.  By Nigel Mayne

In the last 30 years, the franchise has grown into one of the most recognized and reputable business models on a worldwide basis. According to the International Franchise Association, there are over 767,000 franchises in the U.S. alone, providing nearly 10 million jobs and contributing $624.6 billion in business annually. In the UK, the franchise industry is growing at twice the rate of the entire economy according to a NatWest/British Franchise Association study released in 2009.

While business ownership has traditionally been just a dream for many, franchising has opened the door for ordinary people to build their own small business and reap the rewards. But how does that ordinary individual cope with the challenges of a business start up? Shopping for the right franchise is in itself a steep learning curve for many new franchisees. One way to facilitate the process is by searching out the guidance of experts on the process of qualifying as a potential franchisee and in taking the first steps as a new business owner.

Here are some suggestions on actions you should have underway when signing up for your new franchise:

Turn your business plan–the same plan you used to obtain the financing that qualified you as a franchise buyer–into a detailed blueprint for your first two to three years in business. Ask the franchisor for any checklists they have for new franchisees, along with their estimated timeframes. Year one should have high-level detail plotted out with Years two and three being more big picture.

Milestones to mark out include:

• Final negotiation of the contracts for the desired location, equipment and fittings. If this is your first lease negotiation, spend quality time understanding all your rights, obligations and additional start up costs, and review them with your legal advisor.
• Overlay all your task related activities with the timetable of the training requirements of the franchisor. This will help you set the first major milestone of opening day. Working backwards from this major event, you will be able to determine the desired lease date and the date by which you should have your key staff on board.

By now you will have easily identified a number of the steps that need to be taken concurrently.

• Turn to your franchisor for any assistance in marketing and promotional activities to make your opening day a grand success and keep your new customers coming back for more. This key event is worthy of a detailed plan of its own.
• Now, budget for each milestone in rough terms, so that you have the bones of cash flow control that you can flesh out as you learn more during the franchisor training sessions.
• Allow a slippage factor in all milestone dates and budgets.
• Your detailed business plan should be updated or adjusted two or three times a year or immediately should circumstances change.

If at any stage you feel a little overwhelmed by processes that are new to you or perhaps not your greatest strengths, remember that just as you don`t skimp on the prime location nor should you skimp on having the right people in the right places in your new business venture. Recognize your business weaknesses and compensate for them in the quality of your business relationships and key staff. Whether it is the actual hiring of staff, setting up your back-room operations or dealing with the detail of cash flow management, you must meet these challenges with the same energy, leadership and enthusiasm you have for the franchise itself.

The risks of failure in the small business franchise are the same as those in any new and legitimate business model and range from issues relating to the personality and strengths and weaknesses of the business owner to intellectual property matters, general contract disputes and failure to attend adequately to fiscal responsibilities, as well as misrepresentation and commercial fraud by third parties.

A solid plan for start-up and year one goes a long way to laying out the areas where the new franchisee needs to call on expert guidance.

Brought to by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta

What Type of Buyer is Right for Your Company?

Part 2 of 3

An additional consideration for strategic buyers is the clarity of historical corporate records. Large business buyers are particularly sensitive to possible liabilities (licensing issues, outstanding contracts, taxes, etc.) that they may become liable for upon purchase. Therefore, as is the case with virtually all transactions, it’s recommended that any outstanding issues be clarified prior to discussions with a strategic buyer.

The advantages of dealing with a strategic buyer include:

• Their expertise in closing  transactions often expedites the closing
• They generally have a wider range of deal structure and financing options than other buyer segments
• They usually have sufficient resources (both financial and otherwise) to support company expansion and growth

Possible disadvantages include:

• Absorption of the seller’s  operations into the buyer’s operations may be required
• Contingent payments, that depend upon the tracking of financial performance, may be harder to monitor because of the difficulty of keeping separate records
• Some employee positions may be eliminated due to consolidation of operations or elimination of back office functions
• There is often a resultant  change in corporate culture

Private Investment Groups (also known as Private Equity Groups)
Private Investment Groups represent a formal fund (or a number of related funds) created by a group of investors for investment in, and purchase of, closely held businesses.

The strategy and focus of these groups varies widely. Some groups focus on a certain industry segment, while others are more concerned with the geographic location of the target. Certain investment groups may achieve the same synergies with an acquisition as corporate buyers, particularly if the group is building a portfolio of businesses within a specific industry. In any case, the Private Investment Group’s primary focus is to achieve the highest possible financial return for its investors.

Since investment groups generally prefer to let their portfolio companies continue to operate on their own, the preference is for the existing management team to remain after the sale. Additionally, these groups usually have a planned exit strategy and expect to hold a portfolio business for a pre-determined period of time – usually between five and seven years.

The advantages of working with an investment group include:

• With professional buyers the  closing of the transaction is often expedited
• They often provide access to   resources the seller may not have (managerial talent, financing, etc.)
• Their equity capital has  usually already been raised
• The acquired company  generally experiences little culture change

Possible disadvantages include:

• The requirement for  management to stay may conflict with the shareholders’ exit plans
• The transaction may not  offer synergies with other portfolio businesses
• As cash flow-oriented buyers, these groups usually pay a fair but not premium price for the      businesses they acquire
• The company may face being  sold again within five to seven years

Brought to you by:

Dwight Lester, Performance Business Brokers, Edmonton Alberta