When it comes to selling a business, finding the right buyer and structuring a deal that benefits both parties is key. In this case, Alberta Business Sales (ABS) successfully facilitated the sale of well-established automotive service shop in Canmore, Alberta. Through strategic negotiation, creative financing solutions, and a well-matched buyer, ABS ensured a smooth transition, allowing the seller to move forward confidently while the new owner stepped into a thriving operation. This case study highlights the challenges, solutions, and key takeaways from this successful transaction.
Client Overview
The shop specializes in same day oil changes, tires and alignments, and muffler and engine work. With over 6 full-time technicians this automotive shop is a well-oiled machine and one that did not rely on the owner being there every single day. Located just outside of downtown Canmore meant that customers could walk to main street and there was no nearby competition.
The Buyer
Due to the success of the business and its location we initially attracted many corporate groups looking to expand. However, the successful buyer was an individual owner who has previously run their own lube shop for over ten years. The buyer had just sold their lube shop in the past year and was looking to relocate to the Calgary area to be closer to their family.
Challenge
In many towns and rural areas in Alberta it can be a challenge to sell your business. While there are many attractive and profitable businesses in these areas more often than not buyers will gravitate towards the large city centres. Canmore is a bit unique as it is one of the largest tourist destinations in all of Alberta attracting over 5 million visitors a year[1]. While this tourism is great for local businesses this flood of people into Canmore over the years had resulted in a booming real estate market. In turn this means for business owners some of the most expensive lease rates in the province as well as a high cost of living for staff.
Solution
In order to complete the transaction, the financing terms were crucial. Thanks to our relationships with charter banks we were able to structure a deal that benefited both the seller and the buyer. About 15% of the deal was deferred via a Vendor-Take-Back-Loan and we were able to secure financing quickly which allowed us ample time to prepare for the transition of ownership.
Outcome
We were able to negotiate a deal in which both parties benefited:
Key Takeaways
Conclusion
This transaction highlights the ability to find win-win scenarios when working through a business sale. The seller was able to transition to the next stage of their life knowing they have the funds required to do so while their business legacy is able to continue. Meanwhile the buyer is able to relocate closer to family while continuing to work in the industry that they specialize in.
[1] https://www.theglobeandmail.com/canada/article-alberta-canmore-tourism-boom/#:~:text=In%202021%2C%20visitation%20reached%20just%20over%20five%20million.
Craig Panek Broker, Alberta Business Sales and Commercial Ventures
When it comes to selling a business in rural Alberta, business owners face a unique set of challenges. Smaller communities present different market dynamics that require careful planning, strategy, and expertise. At Alberta Business Sales, we specialize in helping business owners navigate these complexities to ensure a successful and rewarding sale.
Let’s explore the distinct challenges of selling your business in smaller markets:
How Alberta Business Sales Adds Value and Solutions
At Alberta Business Sales, we understand the unique dynamics of smaller communities and offer tailored solutions to overcome these challenges. Here’s how we help:
Smaller cities offer distinct advantages for buyers:
Selling your business in a smaller city does not have to be an uphill battle. With the right partner, you can navigate the challenges, unlock hidden opportunities, and secure the best possible outcome for your hard-earned investment. Alberta Business Sales works with you to craft a compelling story that highlights these benefits and attracts the right buyer.
Andrew Earle Broker, Alberta Business Sales and Commercial Ventures
This has been an incredibly busy time for us at Alberta Business Sales! The number of business owners choosing to list their businesses with us has been rapidly increasing over the last 18 months. In the last several months we have experienced an even higher wave of new listings spanning across various industries. From the oil and gas sector to, daycares, seniors’ support services to construction and manufacturing, business owners are finding that now is the time to sell.
Why sell now?
The economic climate in Alberta is looking promising, making it an appealing time for business owners to consider selling their ventures. The province's economy has been on a steady path to recovery post-pandemic. There's a noticeable resurgence in various sectors, including the pivotal energy industry that Alberta is known for. This recovery, coupled with a growing entrepreneurial spirit and increased investor confidence, creates an opportune environment for business owners aiming to sell. The current market dynamics suggest that now might be an advantageous time to explore the potential sale of a business in Alberta.
A Heightened Opportunity For Buyers:
Right now presents a golden opportunity to dive into the Alberta business scene. With a promising economic upswing on the horizon and the resilience of Alberta's market, there's a unique window for savvy investors. The province's diverse sectors, from energy and agriculture to technology and tourism, offer a rich landscape for potential growth. Couple that with supportive government policies and a skilled workforce, and you've got a recipe for success. Plus, the current market conditions might just be aligning in your favour. It's that sweet spot where potential meets opportunity, making it an exciting time to step into the entrepreneurial game in Alberta.
Individuals remain eager to seek great opportunities, leaving us fortunate to benefit from the Alberta Advantage. People from all over the world continue to recognize Alberta as the place to be. In the last month alone, our office has received 10 new offers for businesses listed with us, and several of our other businesses for sale have seen a sudden uptick in interest. By the end of this year, we will have closed nearly 30 business sale transactions, making this our most active year on record.
The current landscape offers a prime opportunity for both prospective buyers and sellers to make strategic business moves. Whether you're eyeing a new venture or considering the sale of your existing one, the timing aligns favourably. Alberta Business Sales prides itself on possessing the expertise and extensive network crucial for facilitating successful transitions in the market. With our support, tailored to the needs of both buyers and sellers, now is the ideal moment to capitalize on this dynamic business environment and embark on your next profitable endeavour.
Not ready to sell? Check out how we can help build value in your business, and help position your business to sell at https://commercialventures.com/
Jay Barrett Broker, Alberta Business Sales and Commercial Ventures