The articles are provided for information purposes only, and are not intended as legal advice.


If you have never purchased a business before, it is difficult to know what you need before buying a business.  Just received a call from someone who found a potential business but did not know what to do next. Here are some helpful hints: (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


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…)


The articles are provided for information purposes only, and are not intended as legal advice.


Buying a business checklist

March 26th, 2010

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…)


The articles are provided for information purposes only, and are not intended as legal advice.


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…)


The articles are provided for information purposes only, and are not intended as legal advice.


When you buy a business, how many hours will you work?  When you are an employee, you may work from 9 to 5 and leave the office   At the end of the day, some of you may think about work, others will not think about work until they show up at 9 the next morning.  When you own your own business, you think about work 24/7 when you start out.  What things do you need to do, how can you improve things, what do you need to order, can you improve efficiencies in what you are doing? (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


You have been looking for a business for a long time but have not been in a hurry to buy a business.  Is procrastination to buy a business a good strategy?  When the economy was not doing well, waiting until price of a business to drop may have worked.   In most countries in the world, the economy is improving which should mean that businesses are doing better.  That will lead to more profits.   The deterioration of the economy led many companies to review their internal operations.  many realized that they were run inefficiently and it was possible to improve efficiencies with less staff. (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


You are looking to buy a business and have finally found your dream business to own. After lengthy negotiations you have come to an agreement. You start your diligence and you were surprised to find out certain things. (more…)

The articles are provided for information purposes only, and are not intended as legal advice.


The basics of buying a business

February 22nd, 2010

Many people want to own a business but do not want to pay the premium for someone to start the business and buy a business.  Remember, you are paying someone who took the risk to determine if the business was viable in the first place.  They have my built up the business over 1, 2 5 or even 10 years.  If you were to start today, your venture may be at risk of survival. A large number of new businesses do not survive the first three years of business. (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


You have been working for someone for all your life, you want a change or you have been given a financial package and now are looking for something to do.  You want to be your own boss and you want to own your own business but you are not sure do you look to buy a franchise or buy a business which is not a franchise?  Franchises and independent businesses appeal to different people, here is a guideline of things to think about: (more…)


The articles are provided for information purposes only, and are not intended as legal advice.


There are many different methods of valuing a business.  Some investors use discounted cash flow, others use a multiple of earnings, some look at appraised assets.  If you are in the same business as the business for sale that you are looking to acquire, what synergies exist between the two companies?  The amount of savings that can be generated needs to be factored into the purchase price.  If you are looking to acquire a competitor who keeps low balling the prices, if you were to acquire them, that gets rid of a competitor which will result in higher prices, you need to factor that into the amount that you will offer for the business for sale. (more…)


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