Corporate Finance in Atlantic Canada

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

Archive for September 2013

Do two things when you sell your business

leave a comment »

http://boss.blogs.nytimes.com/2013/09/13/its-o-k-to-sell-your-business-to-the-highest-bidder/?nl=business&emc=edit_sb_20130918&_r=0

Interesting NY Times blog on selling your small business.

“And that’s why I always tell people to do two things when they sell a business.  First, take the highest offer.  Second, get as far away from the business as you can, as fast you can.  The unfortunate reality is that, in most instances, the former owner is probably going to hate what the new owner does with the business.”

I would add to this, by reminding sellers of the requirement for earnout consideration as part of some deals; perhaps take the offer with the most cash, not necessarily the highest price.  While sometimes a deal can’t be had without an earnout, remember that any price subject to an earnout is at risk from the sellers’ point of view.

Advertisements

Written by Dan Jennings

September 18, 2013 at 5:51 pm

How not to sell your contracting business?

leave a comment »

http://boss.blogs.nytimes.com/2013/08/29/the-right-and-wrong-way-to-sell-a-business/#more-78264

Good NY Times article on selling a contracting business to employee/managers.  The moral:  talk to the employees early and bring them along over time as managers.

Written by Dan Jennings

September 8, 2013 at 11:37 am

The auto dealership consolidation trend continues …

leave a comment »

http://thechronicleherald.ca/business/1151832-oregan-group-adds-bmw-to-the-mix

Halifax-based O’Regans Automotive Group has acquired Ed Backman’s Halifax BMW.

The consolidation trend in the retail auto industry has been going on for some time and has only accelerated, given the capital intensity of the dealership business and the aging demographics of owners.  It is now said that over 60% of dealerships in Canada are owned by dealer groups, of which O’Regans is but one of many (including in our region).

Written by Dan Jennings

September 5, 2013 at 3:57 pm