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


Everyone who wants to buy a business wants to know how much money did the business really make.  This is referred to as normalized income.  This means the income that would remain for the new owner once the old owner left.  That means that all personal expenses are removed, salaries paid to family who are not working in the business and a reasonable salary for the owner.  Many sellers of businesses do not realize that if they work there every day 5 days a week, they need to be paid a salary to cover their work. Anything over and above this reasonable salary is considered earnings attributed to the shareholder. (more…)


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


I believe that over the last year, investors have realized that our economy is truly worldwide and what happens in one part of the world has an impact on another.  We are going through very uncertain times at the moment and there are several large items which are currently impacting decisions.  The oil spill in the Gulf of Mexico, the debt problems with Greece, the stimulus money being spent by all governments and the investigation whether the stock broker model in the US  needs to be changed, are stock brokers there to help you make money or if their prime business model for them to make money.   How does this impact your business for sale? (more…)


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


You currently have your business for sale and you are hoping to find and investor.  Since it takes a long time to find an investor, let’s assume that you find a potential buyer of your business next month.  Sales have been normal up until May but sales start to drop.  How do you explain the change to the investor?  Is this a one time change or is your business really going down hill quickly?  What do you do? (more…)


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


Depending on your personal circumstances, the best time to sell your business is when you believe that you have taken the business to the highest level that you are capable of, maxed out what you believe to be the most profits possible and now you want to retire or move on to another business. If your business is in financial difficulty or if you must sell because of health, you may not have the ability to defer the sale of the business.  Assuming that you have a successful business, when is the best time to sell your business? (more…)


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


In Canada, mortgage rates are starting to increase.  HST is just around the corner being implemented in Ontario and British Columbia on July 1, what will be the impact of these changes?  At the moment no one knows.  I just spoke to a franchiser of lower end restaurants this morning and they are worried that these two items will impact their business.  Will it affect yours?  What happens if you want to sell in the near future, will that impact your selling price of your business for sale? (more…)


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


My of you have been reading in the newspaper that the economy is booming, interest rates are going up in Canada because there is inflation starting.  Business is becoming very profitable, at least in certain industries, but for how long?  Is the growth in business artificial?  Will it be sustained? (more…)


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


In order to sell your business you need to make as appealing as possible to possible investors.  Many investors are always looking for the most recent listings available and often do not look at older listings.  They do not know how old the listings are or why are they still on the market.  Houses can sell very quickly.  Businesses do not sell as quickly. First time investors have the impression that businesses can sell as fast as a house.  That is incorrect. (more…)


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


Mortgage interest rates are starting to rise in Canada.  It is widely expected that the prime interest rate will increase in the summer.  How does this impact your business for sale?  Will there be any impact of higher interest rates? (more…)


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


When you are selling your business, you need to determine the asking price.  But putting a price on a business is not like putting a value on your house for sale.  If you are looking for a house, typically all the houses in the subdivision are roughly the same size and have the same features so you base your house price on a similar sale.  What happens if you have a house for sale and it is a custom built home, the house is larger than others in the area, the land is larger than other lots, how do you determine the value for sale when this is a unique property?  The same problems exist in a business. (more…)


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


You started a business for scratch 40 years ago, now you are debating what to do.  Do you sell the business, do you retire, do you do something else?  These are all thoughts which you have been contemplating for many years but now you want to make a decision, what should you do? (more…)


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