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To Sell Or Not To Sell, That Is The Question?

Don’t wait until it’s too late!

Business owners are faced with a dilemma of whether they should sell and if so when is a good time?

Should business owners sell when their business is booming, when the business is declining or when they are tired and burned out?

After 10 years of selling businesses we can definitely state that the best time to sell is when the business is on an upward trend.  This is the time that buyers are willing to pay the highest price. Unfortunately many business owners wait until their business is declining when they decide enough is enough and want to put their business up for sale. Buyers will not usually pay top dollar if they see the business is declining over a period of time. Sellers want to sell on potential however buyers will only pay for what they can see for income and the income trend at the time the business is available.

Your Performance Business Broker can offer you the experiences of our 10 years of selling businesses.  When the time comes to consider selling we’ll be here for you.  In the meantime, keep your business running strong so the “trend” of your business in the eyes of a buyer is stable or on an upward trend. During the sale process we’ll take care of the incoming buyers and you take care of your business so you can capture the highest price for your hard earned efforts.

Contact us today to discuss your business. info@performancebb.ca

Performance Business Broker – Due Diligence

Contact us today to discuss your needs in selling or buying a business.

Info@performancebb.ca 

#YEG #business #alberta #smallbusiness

What Is Due Diligence and Why Is it important?

Essentially, due diligence is a thorough investigation which will be carried out by a prospective purchaser prior to signing a purchase agreement, but after a formal offer has been presented and accepted. Due diligence is an integral part of the purchasing process and is important that both sellers and perchasers know what this process is for and what it entails.

The main question the buyer wants answering is, ‘is this business worth what I am paying?’ Thus, the financial position of the business will be thoroughly reviewed in order to verify the information you have provided is accurate and representative of the business’ performance. As part of this, the assets, liabilities, cash flow and general financial management of the business will be analysed amongst other financial aspects. However, it does stop there.

Due diligence is a comprehensive process and also typically involves an examination of the legal structure of the business including its position regarding property, assets, staff and will flag any potential litigation being brought against the company. Wider environmental, sector and competitor research will also be undertaken if applicable.

As a seller, you may be frustrated if the process takes longer than you would like, or you feel worried or anxious about the whole process. Keep in mind that due diligence is a vital step in the buying and selling process, and take comfort in the fact that this kind of in-depth examination of your business shows the potential purchaser is serious about purchasing.

It is in your best interest to remain patient throughout and respond to any questions or requests in a timely and honest manner. Withholding information or being generally difficult may come across as though you have something to hide, which will not only prolong the due diligence process further, but may also harm your chances of completing the deal.
It is highly unlikely you will find a buyer who does not want to conduct due diligence on your business, therefore, it is advisable that you prepare for this process. Completing your own due diligence prior to putting your business up for sale can pay dividends in the long-term.

Putting yourself in the shoes of a potential buyer and completing your own due diligence on your business can help you to uncover any weaknesses in the business giving you the chance to improve on these before selling, thereby maximising the price you are able to recieve. The report produced as part of this process can act as a useful document for prospective buyers.

A Performance Business Broker will be able to help you prepare your business for sale, including undertaking due diligence, and will be there to guide you through the entire process through to completion.

Contact us today to start the discussion on selling your business. info@performancebb.ca