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.


If you have a retail store or franchise, the most important aspect of location is the traffic that comes to your location.  Are you a destination where people come specifically to your location or do many of your customers come on impulse when they are driving by?  Is all traffic the same?  How important is good neighbours for your business? (more…)


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


If you want to buy a franchise, should you buy a new franchise from the master franchiser or should you buy a resale, one which has already been owned and operated by an existing investor?  There are pros and cons with both and you will have to pick the one which suits you the best.  Here are few things which you need to consider: (more…)


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


Everyone is currently monitoring the oil spill in the Gulf of Mexico but does anyone realize the economic implications of the oil spill outside the areas near the oil spill?  It will affect more than just the businesses in the Gulf.  How will affect you, will it cause your earnings to drop, if so, do you sell your business now rather than in a few months? (more…)


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


All business owners want to retire with the most money in their bank account so that they do not have to work again.  Many business owners believe that their business is worth more than it actually is or more often that is the amount of that they believe they need to retire on and want their business to sell for that amount.  Unfortunately the value of your business is not what you want it to be or need it to be, it is what the market will bare. (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.


Today is the filing deadline for personal tax returns in Canada.  Most people file on time but many people file late.  Many businesses file their tax return late also.  Is this a problem?  Definitely, especially for businesses.  In Canada, the deadline for paying corporate tax is 2 months after your year end if you are not a CCPC, Canadian controlled private corporation.  If you are a CCPC, you have three months to pay all your taxes but you have 6 months to file your tax return.  What does filing a tax return have to do with selling a business? (more…)


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


The current thought is that you will always save money by transferring your manufacturing to China, but is this always the case and for how long?  If you have a product which is labour intensive, there may be a considerable benefit for moving the manufacturing facility to China or some of the other countries in the Far East.  How long will this last? (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…)


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