Some people get very frustrated that they cannot find a business to buy, they believe that the price is too high and they think that they can do it on their own for a lot less.  Is that true?  It depends on the individual.  Some people have the right background and can be very successful at a new venture, others will not be so lucky.  Which one are you? (more…)

There has been a lot of talk in Canada that interest rates will increase in the summer to the fall.  Yesterday, 3 to 5 year mortgage rates increased.  Many people use the equity in their home to assist in the purchase of a business.  How will higher interest rates affect buyers and sellers of the business? (more…)

When you sell a business, what do you need to do before you list your business for sale.  Here is a partial list of things that you need in order to be ready to list your business for sale: (more…)

You have decided that you wanted to buy a business but do not know what questions to ask or what you are looking for.  Here is a partial list of questions that may be helpful when you start to look for a business: (more…)

You would like to buy a business and need to conduct your due diligence – what do you need to look for?  Everyone looks at different items but here is a partial list of some of the many things that you should look at: (more…)

Most if not all investors who buy a business are given the opportunity to conduct due diligence when they buy a business but many do not fully understand what this opportunity provides, when they are entitled to see and how to use the information that they have now discovered. (more…)

Ever thought why waste your money on due diligence when you are in the process of buying a company and the old owner provided you what you thought was everything?  If you received a letter on closing stating that the old owner did not for example do something, is that good enough?  Can you rely on that?  If that statement was false, now what consequences will result and how much will your good faith cost you trying to fight something that you did not realize existed? (more…)

When you found a business for sale which you want to put in an offer, you generally prepare a letter of understanding outlining the price and the conditions of what you want to buy.  Typically, a letter of understanding is a non binding document however it does talk about a deposit which is paid and the treatment of the deposit if the deal were to fall apart.  After you agree to the letter of understanding, generally the investor is given a period of time to conduct due diligence. Due diligence is the ability to look at the books and records in order to determine if the information forwarded to you can be relied upon. (more…)

You have heard that someone may buy a car and it is a lemon, the same can happen when you buy a business or when you buy a franchise.  If you bought a new franchise, do you have any rights?  If you have a problem, you need to consult a lawyer to determine if there is any recourse under the laws applicable to your area were broken.  I have seen from experience where a franchisor provided specific projections for a particular location and that document came back to haunt the franchisor. (more…)

Ever wonder what you should buy?  Do you buy a business or buy a franchise, which one if better?  Keep in mind, a franchise is a business, it is a specific type of business model.  Other than that, buying a business which is a franchise vs an independent business is very similar.   A franchise and an independent business both have customers, both have sales, both could be in the same industry however a franchise may have a better brand recognition than an independent business but not necessarily.  A franchise will cater more to the masses whereas an independent business may be a niche player or cater to the masses. (more…)