LOGO
 Call : 780-756-2990
banner

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 – 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

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

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 Sells Flower Shop

October 02, 2013

Performance Business Brokers Facilitates the sale of Flowers By Merle in Edmonton Alberta

EDMONTON, ALBERTA – Performance Business Brokers (www.performancebusinessbrokers.ca) of Edmonton, AB has completed the sale of Flowers By Merle on Stony Plain road.  Flowers By Merle was a family owned fixture in the Edmonton flower industry for 47 years. The new owners acknowledge the Flower Shops time in the market place as being a key factor in purchasing the business. The shop is renowned for their amazing selection of fresh cut flowers and flowering plants. Outstanding exotic varieties and interesting foliages arrive directly from growers in South America, Hawaii, California and British Columbia.

 

Dwight Lester, President of Performance Business Brokers in Edmonton AB comments “In a short 90 days we listed the business to sell, presented multiple offers, and completed the sales transaction. Both the seller and the buyer were happy with the efficiency of the sale”. The new owners commented, “Working with Performance Business Brokers was exceptional. Dwight provided great guidance with the due diligence process and assistance during the transition to the new owners”.

 

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 us today at 780-756-2990, or by email at info@performancebb.ca  Suite 220 – 11717 – 42 St. Edmonton AB.  www.performancebusinessbrokers.ca

Edmonton Business Broker Presents – Why you shouldn’t hire a real estate agent to sell your business

Why you shouldn’t hire a real estate agent to sell your business

Chris Griffiths

Published Tuesday, Apr. 30, 2013 05:00AM EDT

While I have benefited greatly from the services of real estate agents for the sale of personal and commercial properties, I would never use one to broker the sale of my business. Here’s why and some ideas for alternative approaches.

If you are selling your business and your business includes a real estate asset or assets, by all means, use a real estate agent for those transactions. I have done several real estate transactions over the years and in 100 per cent of the cases, the real agents I dealt with added tremendous value and an obvious return on investment from their commissions and fees.

Most businesses who own real estate acquire those properties under separate holding companies, so it’s easy to treat the sale of the property (retail store, repair shop, manufacturing facility) differently than the sale of the operating company. Many buyers looking to purchase a business may prefer to rent, so even if your operating company owns a property, you may find yourself selling it separately or as an option.

A real estate agent is a valuable contributor, whether it be on a commission basis during a sale offering, or on a fee-for-service basis as a consultant on how to approach the sale or your business property. However, when it comes to preparing a operating business for sale, and managing the transaction process to closing, hiring a real estate agent is not your best approach.

You see, an operating business is far more complex than a structure and land. Your business has many dynamics that influence its performance and valuing your business fairly, for both you and your buyer, is extremely complex – at least when it’s done correctly.

I often look in the real estate sections of my local paper and see businesses listed and wonder how an owner and the real estate agent could attract me to buy. As a buyer, I want to see:

  • Detailed income statements, balance sheets and cash flows for the past three years as well as a prospectus on the business that covers the history and the future, including detailed financial projections;
  • Non-tangible assets; for example, customer lists and subscription retention rates, and I want to see industry information and a competitive analysis;
  • A list of owner benefits; costs that the business absorbs, but benefits the owner on a personal level as well, such as vehicles or other;
  • Employee performance histories and compensation levels.

I’d also want to discuss terms, an asset sale versus a share sale, and explore areas where there may be risks for future litigation. I’d want to discuss representations and warranties so I know there is some fall back if it turns out I was sold a lemon through misrepresentations of the facts.

But above all, I want to talk to someone who can answer all the questions above, and more, with confidence. As an owner, you may not be prepared to answer these if you haven’t been coached through the process in advance.

Besides running ads, most real estate agents don’t have the background to help a small business owner prepare all the aforementioned information. The bigger the business, the more important this information becomes. After all, you are not just selling a business, you are selling money – future money. An acquirer will value your business based on the profitability and free cash flow that your business is currently generating and will generate many years into the future. Sure, some small businesses are acquired as “lifestyle” businesses, where high growth and free cash flow are not prioritized as much as a steady income and the involvement in an industry that the buyer may be passionate about – looking for little more than a decent salary. Control over his or her own destiny and some fun may be what some buyers are after.

This is why you need to hire a business broker. He or she can help you position your business for all different types of buyers. Whether on commission or fee-for-service, business brokers can identify these and other ways that you need to prepare your business for sale.

While the broker may guide you, you should want to play a proactive role in the creation of your prospectus — a detailed document, like a business plan, that outlines all key aspects of the business. After all the years you’ve spent selling on behalf of your business, this may be the most important sale of your life and only you can portray all the value your business can bring to a new owner.

With the guidance of a business broker, you will be challenged to take nothing for granted and look at business value from many, many angles that may not be top of mind for you. A business broker will help position the business for sale and help negotiate the terms – which can get complicated with earn outs, escrows, hold backs and owner financing options.

So don’t let what may be the biggest transaction of your life turn into something you think will be “obvious” to a new owner based on an ad in the paper. Do your homework and ask for help from experts so you maximize your sale and have no regrets.

Special to The Globe and Mail

FOr all your Business Sale needs contact, Dwight Lester Performance Business Brokers

Edmonton Business Brokers – Tip of the Day

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