Selling a business can be a complex process that requires significant forethought and experience. Whether the process is profitable or not will depend on the timing of the sale, the strength of business operations, financial performance, and most importantly, the business broker you choose. A business broker facilitates the sale of a business from start to finish so that owners can focus on what is most important – running the business itself.
Although required, experienced business brokers that deliver value and prioritize confidentiality specifically for small to medium-sized businesses are hard to come by. After hundreds of transactions and over 40 years of combined experience, Beacon’s business brokers understand these main street businesses better than anyone.
What are Beacon’s Business Broker Services?
Beacon offers the full suite of business broker services to small and medium-sized companies within Toronto and the GTA, through a highly personalized lens. Our brokerage team offers accurate valuations, completed through sophisticated software by our licensed Chartered Business Valuators (CBV). Accompanying our valuations are our Broker Opinion of Value (BOV) reports, outlining and analyzing the company’s qualitative and quantitative characteristics.
If looking to sell, our business brokers create confidential marketing materials and showcase your business to our global network of buyers. We liaise conversations between you and prospective buyers, as well as assisting with negotiations and final closing. At Beacon Advisors, we are with you through every step of the process, from initial valuation to final negotiations – providing you with personalized business broker services, backed by resources only found at investment banks.
In addition to our transaction services, Beacon Advisors also provides sellability consulting, assisting in the preparation of your business sale including preparing the financial and operational state of your company for the buyer’s review.
What is Beacon’s Business Broker Focus?
At Beacon Advisors, our goal is to assist small and medium-sized businesses with the successful sale of their company. Our focus is on companies looking to sell within the GTA and Southern Ontario, in a variety of industries.
We’ve worked with hundreds of companies in Mississauga, Brampton, Hamilton, Oakville and Toronto. We take special consideration for each business we work with, learning the ins and outs of each so that we can market and valuate as accurately as possible. Due to the in-depth nature of our approach, we can effectively work with any sized business in all industries, ranging from the automotive industry to the manufacturing industry, to the tech industry, construction, and the wholesale and distribution industry.
During the sales process, our business brokers focus primarily on confidentiality and simplicity. We use encrypted data rooms and take special consideration while marketing to ensure only qualified candidates receive access to your company’s info. We focus on keeping you in the loop through every step of the process while sorting out the heavy lifting of the transaction; guaranteeing that the sale of your business is simple and straightforward.
What is Beacon’s Business Broker Process?
Step 1: Valuing the Business
The most important aspect of selling a business and the first thing a business broker does is determine the fair market value of the business for sale. To do this, a thorough analysis of historical and year-to-date financial statements is conducted. Our brokers will enter into discussions with the company’s management about all operational, marketing, or legal factors that impact the cash flow and risk profile of the company to further support the accuracy of the valuation. Once this is done, our business broker will suggest an appropriate selling range to you and highlight any shortfalls that may affect a sale.
Beacon utilizes sophisticated and innovative methods to analyze the company’s financial and operations data to provide clients not only with valuation and pricing expectations but also recommendations on steps to enhance their value proposition.
Step 2: Marketing the Business for Sale
Once the valuation is complete, our business brokers start to market the opportunity for sale. Prospective buyers are given a Confidential Investment Memorandum (CIM) – a document prepared by the business broker to provide an in-depth understanding of the company’s operations, competitive advantages, and financial health. At this stage, our brokers will ensure that news of the sale remains confidential so that staff, customers, and suppliers find out only when you are ready.
Step 3: Negotiating the Sale of the Business
A seasoned business broker can weed out the “tire kickers” from motivated buyers with financial backing who are well-suited to run the business. During this step, our broker will make introductions between the prospective buyer and seller, assist in the preparation of due diligence materials, and negotiate deal terms that best fit your requirements.
Business brokers that work with Beacon are particularly skilled at screening potential targets to a level where zero time is wasted in discussions with the wrong group. After receiving multiple Letters of Intent (LOI) and signed Non-Disclosure Agreements (NDA’s), our team pinpoints the best buyer for the business as quickly as possible. When it comes time to close the deal, there is little left to negotiate except for transition, timing, and price.
How do Business Brokers add value?
Pricing the Business to Sell
Finding the right price is more of an art than a science. Coming up with a valuation that can withstand buyer scrutiny, while remaining fair for the owner, is the key value add for any good broker. To properly price a company, our business brokers keep up to date with every major industry, and with current events within Toronto, Mississauga, Oakville, and the GTA. We have access to resources such as data on precedent transactions in similar industries to yours, and even with similar revenues. If the business is valued too high, most buyers will not even bother inquiring. On the other hand, if the business is priced too low, you will not get the full amount your business is worth. Our first value add is coming up with the perfect value, one that suits your needs and facilitates the transaction process.
Saving your Valuable Time
Business owners are masters of their craft, having an expert level of knowledge of their industry and the business they are looking to sell. However, many lack an understanding of the sales process, and even if well acquainted, lack the time and manpower needed to efficiently complete the sale of their business. Our industry is selling businesses, and we are experts in the sales process; we can easily take on the stress and work needed to sell a business so that owners can continue running operations hassle-free.
As part of our business brokerage services, we walk you through everything you will need to sell your business, from the necessary paperwork to the articles of incorporation, to accountant-prepared financial statements, premises leases, contracts, and governmental licenses. We organize the information, create effective marketing materials, and work with buyers without you having to lift a finger. As business brokers, our next value add is to give you peace of mind.
Professionally Preparing Marketing Material
Our business brokers create effective presentation packages to help buyers fully understand the benefits of acquiring. Within these presentations, our brokers will often provide normalized income statements (with clear explanations) to accurately communicate the true profitability of the business. All marketing material created is shared only with prospective buyers, and is otherwise entirely confidential. Our value add is knowing what buyers are looking for, and how to market each business in a unique way, highlighting its strengths.
Leveraging their Network for Maximum Exposure
An experienced business broker has a long list of buyer candidates. From business owners to high-net-worth individuals, corporations, institutional investors, and other industry professionals, our brokers’ networks of connection are vast. Although we focus primarily on Toronto, Mississauga, Oakville, and the GTA, our network of buyers is worldwide. Often we may be able to reach out to interested buyers directly and simplify the process while increasing your chance of receiving multiple LOI’s. Our value add is having the industry reputation, and exposure, to quickly find you a buyer.
Although complex, with the right broker, the sale of your business can be a straightforward and quick process. Choosing a business broker that understands the struggles of the small to mid-market, understands Toronto and the GTA and is an expert on the sales process is imperative to the success of your sale. With a certified team, confidential process, and years of experience, the Beacon team is ready to help you ride into the sunset. Contact us today and let us know how we can help.