Archive for July 2017
Some things you can do to get ready to sell your business
What we’re seeing most often today is that most small business owners don’t have a succession plan nor are their kids interested in taking over the business. So, those business owners will need to sell their businesses in order to crystallize their wealth for retirement. At our “Create a Bidding War for the Sale of Your Business” seminars, you’ll learn some of the things to focus on in advance of when you want to sell, such as:
- Take some time off as the owner – demonstrate to prospective buyers that the business can run without you (by showing that you go on vacation regularly, for example).
- If you are the primary contact for new & existing customers in your business — consider hiring a general manager or sales manager. While that salary will reduce your cash flow, the overall multiple you’ll receive will be higher, resulting in a higher price when you sell.
- Create (or document if you already have it) some recurring revenue in your business — buyers will pay more for monthly recurring revenue.
- Ensure your tax planning is optimized — utilize techniques such as family trusts to maximize your use of the lifetime capital gains exemption to increase your after-tax proceeds.
- Don’t give your financial statements to a prospective buyer — those financials are not intended to show your business in the most favourable light, so by themselves they won’t help yield the best price and terms.
Consider attending our “Create a Bidding War for the Sale of Your Business” seminars this month in St. John’s (July 24) and Halifax (July 28). Register below:
