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Very Well Equipped Machine Shop For Sale

This well-regarded Edmonton based Company specializes in the development and manufacture of parts and components, precision CNC Machining services and Repair Solutions.  Their products are used by a variety of industries and sectors. The Company’s customer base of loyal customers are primarily located in Alberta, however they do serve some international markets.

The Company has a great reputation for comprehensive equipment capabilities, value-added services and a staunch focus on customer service; which, results in excellent customer relationships and high rate of repeat business. Significant growth potential exists via more aggressive business development efforts, expanded service offerings, as well as geographic expansion.

The Company prides itself on its ability to produce custom precision products to meet exacting specifications. This competency has allowed the company to develop long term customer relationships, leading to repeat and referral business.

This dynamic and forward thinking company has consistently invested in new equipment. It offers its customers the best manufacturing technologies and service; ensuring demanding standards of quality are achieved.

Given its robust equipment, which has been appraised at over $ 2 million, the Company has additional capacity available throughout their large shop.  With close to 20 employees no project is too big to be handled. The only limitation is the 10 Ton crane.

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

SOLD – Fire Protection Business for Sale

Fire Sprinkler Contracting Company

Edmonton Alberta 

For the past 7 years the company for sale has been providing fire sprinkler system design, fabrication, and installation, inspection, and maintenance services for various types of industrial, residential and commercial buildings. 35 %  of  the  primary  business  activity  is inspections and tests, 30% is for service and repairs, 20% is new equipment installation, 10% it equipment sales and 5% consulting.

The Company handles a wide-array of fire protection needs, ranging from small, retrofit projects to new building installations, repairs, inspections, and confidence testing services. Typical projects include manufacturing facilities, health care facilities, big box retail stores, schools, paper mills, fast food chains, warehouses, and a large variety of other buildings.

Growth projections are strong, with additional work coming due to increasing government regulations, the insurance industry provides tangible incentives for companies to improve their fire protection systems. This company is positioned to meet these needs with its high-performing team of experienced and skilled personnel.

The ideal buyers would include competitive companies interested in expanding their presence throughout the region, or complimentary companies looking to expand product and service offerings to their current customer base, or individuals who are interested in handling the higher level management responsibilities of the business.

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

Business Risk Evaluation and Winning Management Strategy

Every business faces varying degrees of risks on a daily basis. Now, what is vital for its survival is, knowing how these risks will affect your business. Risk detection, risk evaluation and risk management are all significant processes that every business carries out whether it does so knowingly or not. Having a formal system in terms of developing a strategy for risk analysis in place will ensure that the business owners, management and employees are all working together to enhance business resilience and growth opportunities as well.

Developing a Strategy

Providing a precise and inclusive representation of an organization’s future performance requires a Business Intermediary to consider both positive and negative features of its operations. A SWOT (strengths, weaknesses, opportunities and threats) analysis provides a four-pronged system for assessing risk that links a business’s inner strengths and weaknesses to the opportunities and threats in its outer environment. This accepted tool helps valuator’s organize their thoughts and offers a holistic risk evaluation.

Identifying Risks

Developing a framework to deal with risks is not at all a complex and daunting task. Four simple steps can complete a risk management plan for most businesses. Find out what can happen, how and why a risk may arise and whether it can benefit or threaten the business. Risks can come from anywhere, yet below are the sources of some most common risks to any business:

  • Operational Risks (viz. fraud or processing errors)
  • Regulatory and Legal Risks (viz. contractual or third party injury)
  • Natural Risks (viz. storm, flood or diseases)
  • Financial Risks (viz. sources of funds or interest rate fluctuations)
  • Political and Socio-Economic Risks (viz. terrorism or change in government policy)
  • Strategic Risks (viz. new competitor or loss of key personnel)

Risks Related to the Buyer

For different types of buyers, it is crucial for evaluators to find out the risks related to the choice of one buyer instead of another. To ensure a valuator’s subjective decision is well supported and reasonable, below are some factors to consider very early in the process.

  • Is the buyer acting on behalf of a competitor?
  • What works behind his or her motivations?
  • Can he or she afford to involve in the transaction?

These considerations will help in investigating exactly how these risks can affect the appraiser’s assessment. Regardless of the adverse scenario that may arise, the assistance of an experienced Business Intermediary will certainly help you identify more about business value vs. risk, selling your existing business or buying a new one.

Hence, the valuator’s support and guide their clients through the varying steps of the buying or selling process. You may also contact an attorney to review valuator’s subjective decisions for ensuring that all risk factors have received enough attention.

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

An Overview Of Due Diligence And Its Benefits

The judicious investor can understand the huge benefits of purchasing an established business, but also acknowledges the pitfalls awaiting the unwary buyer. Before finalizing the purchase, the cautious buyer can avoid the various acquisition risks by engaging in thorough diligence evaluation. However, there are some clients who often skip due diligence, considering it a spare expense, and such step is usually unwise. If you are willing to buy a business in Edmonton, a systematic process of due diligence can help you prevent a financial pitfall. You can also engage Performance Business Brokers a leading Edmonton business broker to assist in the due diligence of a business acquisition.

Significance of due diligence

A due diligence analyst has a number of responsibilities. Some of the crucial jobs include discovering undisclosed problems, verifying the accuracy of the seller’s representations and discovering hidden assets and opportunities. All these factors help in increasing the client’s confidence in the original business valuation. Similarly, uncovering neglected or hidden assets automatically raises the value of the deal for the buyer. As a result of revealing undisclosed issues if there are any, the purchaser gets an opportunity to change his mind and walk away from the deal. It also offers him a measure to get into negotiating for a more appropriate acquisition price.

Various types of due diligence

  • Commercial – review of market, industry and business model of the issuer.
  • Financial- review of financial position, policies, tax and internal controls.
  • Reputational – review of reputation of individual counter-parties and credit worthiness.
  • Legal–review of documentation for identifying potentially legal issues that may pose impediments or risks to the (i) transaction or (ii) in the issuer’s general operations, that may affect the consideration or value in connection with the dealing.

Purpose
The major purpose of diligence evaluation as well as structuring of the transaction lies in:

  • Identifying issues relating to documentation and structuring.
  • Identifying contractual and legal impediments.
  • Verifying or confirming warranties and representations.
  • Undertaking processes for the verification of representations and warrants provided.
  • Validating business plan and examining issues and principal areas that needs to be recognized in the business plan.
  • It helps in determining its impact on the proposed transaction.
  • Address, understand and if possible determine risks and build plan of action to mitigate the same.
  • Transaction management and formulating solutions and suggestions to deal with problems.
  • Placing the buyer in a better position depending on the risks addressed, so that the deal can be negotiated or the cost of the acquisition can be adjusted. The buyers also get the opportunity to tailor the indemnities and warranties.

The approach to the due diligence process depends on what is intended to be accomplished and the type of transaction. It is a process of objective and thorough examination that is undertaken before the entry of corporate entities into major transactions like mergers and acquisitions, project finance and security, issuing new stock or other securities and so on. One of the major objectives of due diligence is to minimize the possibility of unknown risks or liabilities to the maximum extent practicable.

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

Things You Should Not Miss While Selling a Business

A business owner might wish to sell off their business. However, the time as well as the procedure of the sale needs to be perfect so as to ensure that it turns out to be a profitable affair at the end of the day. For that, a number of issues are needed to be taken into account at the time of the sale. Some of these issues may vary from one transaction to another depending upon the nature of the sale or the niche of the business that is to be sold off. However, the crux of these deals remains more or less the same all over the world including Edmonton. Let us discuss the points that are needed to be taken into account at the time of selling a business in Edmonton.

  • The first and foremost step of selling a business is calling Performance Business Brokers. We will be able to provide a clear estimate of the real market value of the business and properly evaluate the value of the equipment involved in the manufacture of product or service.

We will also be able to render a complete list of identical businesses or trades in the same niche that have been up for sale along with all the data and the sales figures. This will definitely provide an idea of how to proceed and the likely price of the sale.

  • Another extremely beneficial step that is needed to be taken prior to sale of a business is consulting various newsletters and magazines. That will also provide an idea about all the similar types of companies that are up for sales.
  • It is also highly important to determine and ascertain the likely effect of the sale on the clientele. It is imperative to gauge whether the sale will result in reduction of a sizeable portion of customer base. At times, the sale of a business imparts a negative effect on the psyche of the customers so much so that a large portion of them drifts to another product or service, raising problems for the company. In some instances it is wiser to go sell the business in a confidential manor without bringing it to public knowledge.
  • Our team of professional appraisers which can conduct valuations on equipment, real-estate or the business is another very important aspect of selling a business in Edmonton. This is more important in case there is any plan of selling the property without the involvement of any real estate or property broker.
  • An effective marketing strategy needs to be planned irrespective of the fact that the business is being sold with or without the assistance of a business broker. Here, it is essential to look for the a set of marketing tools that will provide the business with the maximum exposure.
  • Another way of selling a business is doing so with the help of a local trading organization or networking referral service provider that will help in promoting the sale.

Selling companies is a pretty intricate affair. Hence, it is advisable that proper processes and methodologies are followed to make sure that the entire process is conducted in a seamless way and all the objectives are met without any problems.

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.

Accredited Cosmetology – Aesthetics School for Sale

Established for over 25 years, this institute operates a private for-profit post-secondary school that provides vocational training. The institute offers non-degree, certificate programs within the Cosmetology – Aesthetics industry.

The school is licensed as a Private Vocational School by the Alberta Enterprise and Advanced Education. The programs offered by the school are eligible for student loan funding from the Alberta and Federal student loans program. The fulltime program runs 10 months and has new student intakes each month.

The schools generated gross revenues of $1,1500,000 in 2012 and had impressive profits.

The seller, who is retiring from the business, is looking for a buyer, who is capable of taking the school to another level, for which the foundation is prepared and ready. The school is situated in a beautiful and new location since 2011 with high traffic flow.

The school also enjoys the ability to have additional revenue streams from retail sales of cosmetology – Aesthetic product as well as from services provided by the students while they learn.

The school has a high grad placement rate of 90+% within three months of graduating.

The purchase price of this opportunity is negotiable and this information is intended to ascertain interest in the said business after which open negotiation is invited.

Contact us today at Performance Business Brokers for full information on this unique opportunity at 780-756-2990 or email us at Dwight@performancebb.ca

 

 

Edmonton Business Broker – Oilfield Maintenance Company For Sale

Performance Business Brokers Presents

If you are looking a solid company with a 20 years history in the Oilfield Maintenance business your wait is over.

This company services oilfield companies in the north eastern region of Alberta, with experienced crews. The company specializes in winter road building, Snow making, picker truck and hotshot services and chain link fencing installation.

They have a complete line of equipment to build and clear winter roads and to provide grass cutting services for high grade roads in the summer months.

The company prides itself on safety and in the last ten years there have been no lost time accidents or injuries on any of their projects.

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