Corporate Finance in Atlantic Canada

Commentary on corporate finance issues for small- & mid-market private companies in Atlantic Canada

Archive for June 2013

How to make your business more attractive for sale

leave a comment »

http://www.theglobeandmail.com/report-on-business/small-business/sb-money/valuation/how-to-make-your-business-more-attractive-for-sale/article12777625/

Interesting Globe article on bridging the valuation expectations gap of buyers and sellers.  In my experience in our marketplace, the need to show there is management other than the owner is the key way to build value in your business … you must be able to demonstrate to a buyer that the business can survive without the owner, and this is particularly important in small businesses.

Advertisements

Written by Dan Jennings

June 29, 2013 at 7:41 am

Local dairy deal

leave a comment »

http://www.newswire.ca/en/story/1187613/agropur-cooperative-completes-the-acquisition-of-nova-scotias-cook-s-dairy

Quebec’s Agropur has acquired Yarmouth’s Cook’s Dairy (a few months after acquiring Bedford-based Farmers Dairy).

Written by Dan Jennings

June 21, 2013 at 8:20 am

Avionics deal

leave a comment »

http://thechronicleherald.ca/business/1136320-nb-flight-college-purchases-halifax-avionics-company

Moncton Flight College has acquired Atlantic Avionics, located at the Halifax airport.  The company maintains aircraft instruments, including the purchaser’s fleet of 35 aircraft.

Written by Dan Jennings

June 18, 2013 at 9:44 pm

Posted in Announced Transactions

Tagged with

Do you want to be an owner? Buying a business 101

leave a comment »

http://www.profitguide.com/manage-grow/strategy-operations/acquisitions-buying-a-business-30314

Check out this article on Profitguide.com about buying a business.  Some good ideas, suggestions and reminders here, particularly the one about not letting a vendor walk away after the transaction.  For risk-mitigation reasons, it is critical that the vendor be motivated to assist in both the transition and medium-term future success of the newly-acquired business, especially for a small business.

The article doesn’t discuss that, in my experience, many lenders will also insist that the vendor be contractually obligated to remain in some (limited) way post-transaction, to assist the buyer in maintaining customer and employee relationships.  The details of how long and how much they get paid are, of course, open for negotiation.  Just makes good business sense for the acquirer to insist the vendor be involved post-transaction (but not full-time employment, in many cases), particularly for small business transactions (where the owner is often the key manager).

If you want more information on the entire process of acquiring a business, check out the ‘Buying a Business’ section of our website:  http://www.raymondyuill.ca/buying.html

Written by Dan Jennings

June 14, 2013 at 4:52 pm

Dragons Den business valuation

leave a comment »

http://www.cbc.ca/news/business/story/2011/05/12/f-vp-buckner-small-business.html

CBC’s Dianne Buckner’s views of business valuation on the show Dragons Den … apparently she just discovered the CBV designation and specialty that’s been around for 40 years!

Written by Dan Jennings

June 9, 2013 at 11:07 am

US baby boomers are selling their small businesses

leave a comment »

https://www.exit-planning-institute.org/index.php?content=news&a=191

According to BizBuySell.com, the number of sales of US small businesses were up 56% in Q1 of 2013 (compared to Q1 of 2012).  One quote:

“We started getting a lot of activity with sellers who said, ‘I don’t want to go through another downturn or tough time.  I want to see if I could sell my business.'”

According to Pepperdine University, baby boomer retirement was the number one reason for small business sales in this period.

We haven’t seen this kind of huge spike in Atlantic Canada, but the number of transactions is definitely increasing, as sellers who paused over the recession impacts on their businesses have now come back to the market.

Written by Dan Jennings

June 7, 2013 at 9:54 am

Seamark deal

leave a comment »

http://www.newswire.ca/en/story/1178387/marquest-seamark-sign-binding-agreements-to-acquire-assets

The senior management of Seamark (led by Bob McKim), along with Toronto’s Marquest Asset Management, are acquiring the asset management business of Halifax-based Seamark from the current owner, the Matrix Group.  The ownership split between the management team and Marquest will be 67/33.

Written by Dan Jennings

June 6, 2013 at 10:13 am

Posted in Announced Transactions

Tagged with