Canadian businesses employed 1.3 million people as of June 2022. Approximately 494 thousand were located in Ontario.

For most small business owners, buying or selling a business is a significant and large transaction. Early preparation may be more critical today than it has ever been. During this economic downturn of 2022 & 2023, Small and Medium Businesses are undergoing a major shift in ownership. With so many businesses coming to market, one could argue that we are in a “buyer’s market.” Just like the sale of any real estate in a buyer’s market, it’s important that your business can stand out from the crowd.

We are a team with more than 30 years’ experience in real estate. After we gather enough info from you we can then engage resources to sell your Investment or your business. Click here to set up a Zoom Meeting to discuss further.

An asset sale versus a share sale

In a share sale, everything passes to the new owner. With an asset sale, you are not eligible to take advantage of the lifetime capital gains exemption. In addition, taxable income in an asset sale can include capital gains on other capital properties and capital gains on goodwill. Your Accountant needs to be consulted before moving forward.

Planning to Sell

If you are in a hurry, you might not realize the return you want from your sale if you don’t start planning early. All partners must agree on the process, pricing, and timeliness if the project is a partnership. Exit and tax strategies should be discussed with the Company accountant. 

Make your business as valuable as possible
Consistent growth and profits are the most effective way to boost your business’ value. By developing and implementing a marketing plan that focuses on creating a diversified client base, you can improve your profitability. In order to increase productivity, you can analyze your processes for efficiency gains and develop repeatable, teachable processes like in a Franchise. Profitability and your ability to prove it are the primary drivers of business value.

Organize your records as soon as possible
A comprehensive list and description of assets, outstanding and unforeseen liabilities, as well as financial statements and records should be readily available.

Prepare a confidential information package that provides a comprehensive summary of the business for potential buyers. Before buying your business, any serious buyer will conduct due diligence, so you need to be prepared.

Lastly, make sure you are organized and prepared to answer questions. It is possible for a potential transaction to get delayed or even canceled when the seller is unable to provide and guarantee the details.

It may take longer than expected

The sale of a business can be a complicated procedure. Deciding the value of assets such as goodwill and intellectual property between both parties or getting appropriate buyer financing can all take some extra time to complete the sale.