One of the questions that we are asked in our work as business intermediaries in Toronto, Canada is “why should I use a business broker to sell my business?” The answer to this is simple: a business broker will be able to sell your business faster, with less disruptions to operations, and for a better price than would be possible if it were to be sold by the owner. This is because brokers are in the business of selling businesses, meaning that they are experts at facilitating the transaction between the buyer and seller. To understand how a broker can sell a business faster, and for a better price, it is first important to understand what exactly a broker does.

Buying a business can take time, energy, and some detective work. It is important that you do your homework to ensure that you buy the right type of business and that you pay a fair price for it.

Once the acquisition target is identified entrepreneurs often report that getting financing is one of the most challenging aspects of acquiring and growing a business. If you are looking for money for your business, you should start by learning about the different types of financing that are available and assessing which one is best for your needs. You can also reduce your need for loans by preparing and managing your financial situation in the months leading up to your acquisition.

We are pleased to announce the sale of this Mississauga-based Plastic Forming and Manufacturing Company, exclusively brokered and facilitated by Beacon.

In the digital age, it is imperative for a successful business to have a well-functioning website. A website can help increase your sales, improve your brand image, and keep your customers informed about important happenings in your business. All of this will help you maximize the value of your business.

Many business owners believe the act of selling their business is similar to passing the baton in a 400 metre relay: once you’re finished running, you get to relax. In reality, buyers will insist that you stay on for a transition period – anywhere from six months to a few years – during which time you continue to work in your business to help the buyer capitalise on the investment they’re making.

When making the decision to sell or buy a company there are two ways to structure the deal - as an asset or as a share sale (purchase). Each comes with its own pros on cons for both the buyer and the seller, and choosing which one is most appropriate depends entirely on that particular situation. Below we have outlined the major differences between the two as well as some of the pros and cons of each.

“How much is my company worth?” is a question that many business owners would like the answer to, and rightfully so, because the value of a business is one of the key factors that determines your business’ selling price. The most common methods to value a small to medium-sized business are the income approach, market and asset approach, and discounted cash flow (DCF). If the explanations detailed below are overly technical and if there are some terms used that you do not fully understand, check out the blog from last week “Key Financial and Accounting Terms Explained”.

To grow a valuable business – one you can sell – you need to set up your company so that it is no longer reliant on you.
This can be easier said than done, especially when, like a PR consultant or plumber, what you are selling is your expertise.
To scale up a knowledge-based business, you first have to figure out how to impart your knowledge to your employees, so that they can deliver the goods. However it can be difficult to condense years of school and on-the-job learning into a few weeks of employee training. The more specialized your knowledge, the harder it is to hand over work to juniors.

Understanding financial and accounting statements can be a confusing and even overwhelming ordeal, and much of this has to do with the litany of financial jargon that seems like a Harvard MBA is needed to understand it. However, we have done the hard work for you by breaking down and explaining some of the key terms that every business owner should be familiar with.