Client Overview
Alberta Business Sales (ABS) worked with a small digital marketing company that specialized in providing SEO, social media management, and content marketing services. With a well-established client base and a reputation for delivering results, the business was positioned for growth but required new ownership to reach the next level.

The Buyer
The buyer was an entrepreneur in the same industry, running a business that offered complementary services such as web development and pay-per-click (PPC) advertising. They saw the acquisition as an opportunity to expand their offerings and provide a one-stop solution to clients of both businesses.

The Challenge
Although the business had strong financials and a loyal client base, the buyer market in the digital marketing space is often price-sensitive. Securing the seller’s asking price required careful negotiation and a deal structure that would appeal to the buyer. As a service-based business with limited tangible assets, securing bank financing for this purchase presented a significant challenge. Currently, most financial institutions show limited appetite for businesses of this nature or size.

The Solution
ABS identified early in the process that flexibility in deal structure could be a key factor in securing the asking price. Working closely with the seller, ABS proposed incorporating a seller financing arrangement to support the goodwill portion of the business. This demonstrated the seller's confidence in the business's continued success under new ownership and reduced the buyer's upfront financial burden. The transaction was structured with a combination of cash at closing and seller financing, accounting for 100% of the deal. This approach provided the seller with a more secure position, as they were not subordinate to any senior debt that might have otherwise been involved.

The Outcome
The deal closed with the seller receiving their full asking price, thanks to the balanced structure that included seller financing for a portion of the goodwill. Both parties benefited from the arrangement:

  • The seller achieved their financial goals while transitioning the business to a capable buyer.
  • The buyer acquired a thriving business and leveraged their complementary services to create new revenue streams.
  • The transaction was completed in a timely manner that aligned with the needs of both parties, avoiding the extended timeline that would have been required had bank financing been involved.

Key Takeaways

  • Industry Fit: Matching the business with a buyer in a complementary sector added immediate value.
  • Flexibility: The seller’s willingness to consider creative deal structures, like seller financing, was pivotal in closing the deal.
  • Collaboration: ABS’s strategic guidance ensured that both parties felt supported and confident throughout the process.

Conclusion
This case highlights the importance of flexibility and strategic alignment in successful business sales. Alberta Business Sales is proud to have facilitated this win-win transaction, enabling both buyer and seller to achieve their objectives while ensuring the business’s continued growth.

Heather Miller General Manager, Alberta Business Sales and Commercial Ventures

Jay Barrett Broker, Alberta Business Sales and Commercial Ventures