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Wig & Hair Extension Retail Store

Performance Business Brokers Presents – This well established hair extension and wig store is located in the busiest area of Edmonton.  Foot traffic is extremely high and many customers are repeat customers. The store has been open for over ten years and has great repeat business.

Staffed with 3FT and 2 PT the store can be owner operated or run at arms length. The stores current lease runs for another 6 year under favorable terms. This is a turn key operation.

Purchase price of $400K includes $100K of inventory.

For complete information contact Dwight Lester, 780-756-2990 or info@performancebb.ca

Price Reduced – Brand New Nail Salon For Sale

Performance Business Brokers Presents – A brand new Nail Salon in Sherwood Park is for sale.  Just opened 8 months ago available for immediate sale.  100% turnkey business comes complete with 6 Nail stations, 6 pedicures chairs, Wax / Massage room with all the equipment, Washer and Dryer, many fixtures of gel and polish.  All equipment, supplies, tools, furniture and fixtures included.

Located in a prime newly built Sherwood Park location, Excellent opportunity for owner/operator. Excellent reputation in the area and customers love coming here.  Can accommodate up to 12 Nail Technicians.

Contact Dwight Lester at 780-756-2990 or via email at info@performancebb.ca

UPS STORE IN EDMONTON

The number 3 producing UPS store in Edmonton is for sale. The Business is supported by a well recognized name brand business which supports commercial and neighborhood businesses with copying and digital printing solutions, document services, shipping options, full-service packaging, or mailboxes services.

The UPS store franchisees which will provide professional training and support for the new owners with a network of over 340 other locations across Canada.

Priced well below what a new location would cost with income being generated from day one. Enjoy the enormous strength limitless potential of solid industry name brand recognition with great lease and location and term. Price includes all lease holds, inventory and furniture, fixtures and equipment.

Please contact Dwight Lester (780) 756-2990 or info@performancebb.ca find out how easy it is become an owner of this great opportunity.

SOLD – Lash and Brow Studio For Sale

Are you looking to be your own boss? Are you looking to be an absentee owner? This business will allow you to be both?

This spa business is into its third year and has had huge increases year over year and is still growing.

It is located in the Edmonton area and is new, trendy and has a modern look and feel.

The business is fully staffed which will remain on and continue to grow the business.  Lots of repeat clients and new clients via word of mouth.

The space is 1100 sq. ft. with 3 years left with an option to renew for 5 years.  Great lease rate in place with a very good landlord.

Contact Dwight Lester, 780 – 756 – 2990 or by email at info@performancebb.ca

 

SOLD – Licensed Massage Training School For Sale

For the past 14 years the company for sale has been providing massage training under a private vocational school license issued by the Province of Alberta.

The school operates in multiple locations throughout the province.  Due to being licensed already with the province additional programs can be offered leading to certificates or diplomas.

Graduates are trained to meet therapeutic needs of the Clients and the requirements of their Group Insurance Companies.

As a leader among massage therapy schools in Alberta, they pride themselves in teaching our graduates how to be successful in the workplace. The instructors are all practicing therapists in the communities in which they teach. They are committed to passing on their knowledge, as well as the practical skills they have honed in their many years of practice.

The school offers two programs in Massage; Swedish Relaxation (900 hours), and Massage Therapy (1300 hours).

This allows for a total of 2200 hours, which is the standard generally accepted across Canada.

The courses offered are part time in class and part time home study, with online support and access to the instructors during the time away from class. This allows for the students to have more control over which hours they study, and consequently to fit the course into their present lifestyle.

The current owner is looking to retire but will remain on and work with the new owner on a day by day basis to ensure a smooth transition.

For more information on this business contact Dwight Lester at 780-756-2990 or at info@performancebb.ca

Performance Business Brokers Facilitates the Sale of Grizzly Disposal Solution

March 13, 2014 10:30 ET

Performance Business Brokers Facilitates the Sale of Grizzly Disposal Solution by Way of Controlled Auction in Edmonton, Alberta

EDMONTON, ALBERTA–(Marketwired – March 13, 2014) – Performance Business Brokers (www.performancebusinessbrokers.ca) of Edmonton, AB has completed the sale of Grizzly Disposal Solutions in Lac La Biche, Alberta. Grizzly Disposal is a full service Waste Disposal Solutions company specializing in front load, roll-off and curbside waste service. Their customers range from residential, commercial and oil field servicing, including many in the oils sands field.

Dwight Lester, President of Performance Business Brokers in Edmonton AB comments, “With the type of business being sold and knowing that there were multiple possible suitors we concluded the best process for selling the business was through a controlled auction. Our objective was to create a competitive market among multiple buyers for the sale of this business.” Norman Charest, the Sellers commented, “Working with Performance Business Brokers was the right choice for us. Dwight provided great guidance throughout the whole process from the first day in listing the business for sale and throughout the process including closing.”

About Performance Business Brokers, Edmonton

Performance Business Brokers is a full service Edmonton Business Brokerage Company that sells businesses across Alberta. We specialize in business valuations, packaging, listing and the selling of existing businesses and new business opportunities.

Selling your business is one of the most important financial decisions you will ever make and it can involve high levels of stress and anxiety. Working with a professional can reduce the stress by determining the optimal selling price and terms for the seller. The majority of a business owners’ wealth is often tied to the business so a properly executed exit from it is paramount. It is important to ensure you have the right team to guide you when selling your business.

Selling Businesses is our ONLY Business

 Contact Information

Fast Growing Security Company for Sale

Performance Business Brokers Presents

For sale is a Security Company that is halfway through their fourth year of operation and has had a huge revenue increase over this time. Current year’s revenue is tracking to be higher than $1,600,000. Great profit margins.

Most of the revenue comes from businesses in and around the Edmonton area. The business is currently operated by an out of province owner.

All required licensing is in place for the provinces of Alberta and British Columbia.

This is a perfect addition to a business already in the security industry which is looking to grow through acquisition or for an individual looking to enter the security industry for the first time.

For more information on this business contact Dwight Lester at 780-756-2990 or at info@performancebb.ca

5 Core Tenets of Exit Planning

5 Core Tenets of Exit Planning

Takeaway: Business owners: prepare for the single largest financial transaction in your lifetime.

The succession or exit by a business owner is usually the single largest financial transaction in their lifetime with a lot at risk as typically a majority of an owner’s net worth is tied up in their company (normally greater than 70%). Accordingly, an owner needs to prepare and begin two to five years prior as business value enhancements, tax planning, market timing and the sale or transition process all need to be strategically mapped out, implemented and aligned. Unfortunately, owners typically skip this planning phase resulting in post-exit remorse with significant wealth left on the table.

A true and properly prepared exit plan offers the following five core tenets for an owner:

1. Aligning an owner’s personal, business, and individual long-term financial goals

Determining the success or failure of an owner’s exit is defined and measured differently by every business owner. Accordingly, the first step of any exit or succession plan should always be the articulation and alignment of an owner’s goals. This exercise creates the necessary foundation of the plan and equips the owner and his or her advisors with a compass to proficiently navigate a successful exit.

To begin, an owner needs to answer the following goal questions:
• Business goals – What do you want your business to accomplish prior to your exit?
• Personal goals – When do you want to exit? How do you want to exit – over time or in one event? Who do you want to exit to? What do you want to accomplish as part of your eventual exit?
• Financial goals – What are your long-term personal financial needs and what is the amount you need from your business to accomplish?

The next step is to reconcile all the goals into alignment. This is necessary because typically the timing and or the financial aspects of each of the individual goals do not match with one another (i.e., if an owner’s business goal prior to exiting is reaching $50MM in sales which will take five years but one of the owner’s personal goals is to exit the company within the next two years). The key to reconciling all the goals into alignment is to prioritize and adjust those goals that are flexible, either from a timing or financial standpoint. Typically long-term personal financial needs have limited flexibility and this usually drives adjustment to the other goals. This is often an iterative process and requires sound financial data including the amount required to meet your personal long-term financial needs and the amount your ownership is worth under your goal scenarios and other what-if scenarios. When completing this process, owners need to be aware there are outside market influences they have no control over and the timing aspect of certain goals should be set with some flexibility.

2. Empowering an owner with an in depth knowledge of all their succession or exit options

In order to satisfy an owner’s business, personal and financial goals, a sound exit plan evaluates all the options and alternatives and vets each to determine the optimal solution for the owner. This process is normally completed in conjunction with the reconciliation of an owner’s goals process as just explained above. As presented below, there are typically six major exit channels available to middle market business owners with the timing on how an owner exits (in one event or over time) available for each option with advance planning. Determining the availability of the different exit channels for an owner is dependent upon the motivations and goals of the owner and on the underlying company’s profile (size, profitability, maturity, outlook, etc.). Thus, the breadth or narrowness of options will vary by owner.

External Exit Channels
• Financial buyer
• Strategic buyer (vertical/horizontal) Internal Exit Channels
• Recapitalization
• Family
• Co-owner(s) or Management
• Employees (ESOP)
Pros
• Generally highest available value
• Diversification of family’s wealth
• Post-sell financial and leadership resources Pros
• Greater control over legacy, timing and terms
• Income and estate tax saving opportunities
• Limited due diligence and time required to close
Cons
• Time and cost of marketing, due diligence and closing transaction
• Limited control over post-legacy value Cons
• CRA and tax courts are value authority for family and ESOP transfers
• Value received often less than actual market value
• Buyer’s financial resources usually limited

3. Maximizing the fundamental or underlying value of the business
Buyers look at numerous aspects of a company to determine value. To maximize value, owners must be able to view their company from a buyer’s perspective…what would you expect or look for if you were doing an acquisition? Often times, discovering the value differences occurs too late, reducing the company’s sellable value with a lack of ample time to correct.

Thus, a sound exit plan should evaluate the company from a buyer’s perspective and identify opportunities to increase the underlying company’s value and implement action plans to capture the full value prior to going to market. Assessing the opportunities is often hard to do from an insider’s perspective and especially so if an owner doesn’t have experience with buying or selling companies.

In line with maximizing the fundamental value of a business is an equal if not greater opportunity to maximize the value by identifying strategic value drivers. Strategic value drivers are elements that both reduce risk and improve returns for buyers. In practical terms, value is in the proverbial eye of the beholder and greater value is available over normal industry standards if an owner can position their company to make it the most attractive to likely buyers. This is accomplished as part of a sound exit plan by identifying the value drivers that buyers are seeking and ensure the goals of the company are focused on growing these drives.

Examples of strategic value drivers (partial list):
• Specific market presence
• Specific customer base
• Geographic footprint
• Market share
• Technology or licenses
• Trademarks or patents
• Niche products or services
• Advantageous systems or processes
• Sales distribution network
• Vendor channels and relationships
• Strategic relationships
• Reputation or brands
• Scalability of your products or services
• Management team or skilled workforce

Owners should start working on the value building processes two to five years in advance as implementation of enhancements take time with the worst case scenario being that an owner has created a stronger and smoother running company and would like to stay engaged with the business longer.

4. Eliminating, minimizing or deferring income and estate taxes
The actual value realized by an owner is always less than the company’s selling price; it is the culmination of the price, structure, terms and the corresponding tax consequences of the sale. The amount of the tax component continues to shock owners. Without advanced planning prior to exiting, owners will leave significant wealth on the table. There are multiple tax saving opportunities a good exit plan addresses.

• Company entity level
• Personal level
• Estate level
• Transaction level

At the transaction level, the structure of the deal can mean a difference of up to 20% in net proceeds for an owner and so thought and analysis need to be completed prior to going to market to determine the best structure and deal strategy available for the owner.
5. Maximize what the market is willing to pay for the business.

The last core tenet of a good exit plan is for those owners that have elected an external transfer channel (which is typically 80% to 90% of all owners) and it consists of four components.

Sell side due diligence – this is a process of conducting the same intensive review as a buyer would and compiling and organizing the associated documentation so it is ready for the buyer (typically in an online data room). Sell side due diligence provides owners two benefits. First it expedites the actual due diligence a buyer will conduct which helps prevent confidentiality issues, minimizes operating distractions, helps assure the deal will close, and just gets the deal closed sooner. Secondly, and more importantly, it prevents the deal from going sideways or getting cancelled all together. Too often the skeletons come out of the closet during due diligence and if the seller isn’t aware or hasn’t made the buyer aware of these skeletons then it positions the buyer with instant negotiating leverage. By conducting due diligence prior to going to market, issues that would otherwise slow or kill the sale are identified upfront so that corrective measures can be implemented.

Market timing – As all business owners know, timing is everything. In order to realize and maximize ownership value, all of the critical market, company, personal, and tax elements must be aligned. This is a dynamic process with the critical market elements outside an owner’s control. The windows of sale opportunities open and close based on economic conditions and the cycles of industries and market segments. For that reason, the goal of a good exit plan is to complete all the value enhancements, tax planning, individual wealth planning, preparedness, etc. so the owner is in a state of readiness and agility – equipped to capitalize on the market windows of opportunities as they present themselves.

Competing buyers As part of an exit plan, owners should create an ideal buyer profile and begin compiling a list of potential buyers that match the profile. The list should contain both financial and strategic buyers with candidates typically pre-indentified as part of the strategic value drivers process explained earlier.

The chosen sale/marketing approach can also create a competitive market for a company. There are two basic approaches available to middle market companies; a negotiated sale and a controlled auction. In simplified terms, the negotiated sale is where the seller performs limited marketing of the company and directly solicits interest from a few known potential buyers. The seller talks with each interested buyer on a first come, first served basis and attempts to negotiate the best deal. The controlled auction process casts a much wider net in its marketing process and follows a much more formal and structured process. The process begins with sending a Teaser to a large list of potential interested buyers followed by an Offering Memorandum detailing the company for those interested with a deadline to submit bids. Based on the qualifying bids, the seller invites a handful of buyers for face-to-face meetings touring the company and providing an opportunity to vet each other. After the visit, buyers have a deadline to submit final offers to purchase and the best purchase offer is chosen by the seller. The controlled auction is the preferred method to create the competing buyers environment but it is an intensive and costly process and isn’t appropriate for all companies. It works best for companies with at least $1MM in EBITDA or certain sought out intellectual property or other synergies.

Edmonton Business Broker – Key employees, Who Must Stay On?

Buying An Edmonton Business With Key Employees Who Must Stay On….Author Richard Parker

In many small businesses, the owner is often the truly key employee responsible for driving the sales and profits. In fact, a quandary many buyers face is with situations where the owner is “the business” however, there are situations where retaining certain key employees is fundamental to the ongoing success of the business under new ownership.

The first thing a buyer must do is to properly gauge the importance of specific employees. If a business has low level, hourly employees who can easily be replaced, there is no need to get overly concerned about whether or not they will stay. To this point, it is not necessary for a buyer to meet with employees of a company pre-sale if in fact these are basic employees who of course are important, but their departure will not really impact the business.

However, wherever possible, prospective business buyers should endeavor to meet with truly key employees before a sale. This is also important from a standpoint of knowing that the business can never be held hostage by any non-owner. After all, if the business is totally reliant on one key employee, does it really make sense for you to buy it?

Keep in mind that the incidents of employees leaving after a sale are far less frequent than most buyers believe for a few reasons. First, it is change, and the uncertainty thereof that concerns employees. Once they realize that nothing drastic will happen, they will simply carry on with their work. Second, and quite obvious today, jobs are not plentiful. As such, it is simply not that easy for anyone to get another job.

However, what about situations where there are key employees or ones that hold certain licenses for example that a business may need to operate. In these cases, it is important for a buyer to meet these individuals as part of their due diligence review. Yet, they, the buyer, must understand that a seller will almost always buck at this provision and it is understandable. A seller is always going to be concerned about word getting out of a sale and especially if it does not materialize. As such, in these situations, meetings with key employees have to be arranged at the point where all other deal conditions have been satisfied.

Next, the question becomes how can a buyer guarantee that an employee will stay? The short answer is they cannot. Contractually, a seller cannot bind anyone else so forget the idea of including language in a contract whereby a seller agrees that specific employees will sign an employee agreement. While a buyer can certainly have a condition of the deal to provide for certain employee agreements to be executed, this can only be done between the buyer and employee.

What also needs to be considered is whether or not a buyer even wants to be bound by an agreement with any employee. On the one hand, a buyer may want the security of knowing an employee is contractually obligated to remain, but what if they soon discover they want to terminate them? Personally, unless there are highly unique circumstances, my recommendation is that a buyer should defer such agreements and obligations until such time as they (the buyer) has an opportunity to work in the business and effectively measure the so-called key employee’s contribution.

Presented By: Dwight Lester, Performance Business Brokers, Edmonton Alberta