Business Buying Tips & FAQs | Alberta Business Sales

When you’re ready to buy a business in Alberta that’s aligned with your long-term objectives, our team at Alberta Business Sales can help you carve out your own path. Whether you’re looking in Calgary, Edmonton, Red Deer, Lethbridge or any of the other towns and cities in the province, we have the answers you need. Here we share our buying a business FAQs and valuable buying a business tips to help prepare you for the road ahead.

How Much Does It Cost to Buy a Small Business in Alberta?

It depends. In some cases, you are purchasing all the assets and inventory, while in others you are buying only certain aspects of the business. In a service-based business, you look at earnings potential or the market, as opposed to just assets like business equipment. That means the cost will vary wildly. There are also considerations for goodwill the current owners have built up in the community and the potential for growth and revenue. Our team helps establish a fair market value. See more about ways to value a business below.

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Is Buying an Existing Business a Good Idea?

If you’re ready for some hard work and have access to the capital required to invest in an existing business, then yes, buying an existing business is a good idea. You can find a business you can actually get on board with, selling the products and services that feel right for you. You benefit from the work the seller has put in yet have the opportunity to make it your own.

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How to Finance Buying an Alberta Business

There are a number of unique and creative paths to effectively financing the purchase of a business. Using cash, bank lending, vendor financing, or investment groups all have their advantages and disadvantages when it comes to purchasing a company. Our team works directly with you to create a unique plan that works for both the buyer and seller of a company.

How to Evaluate a Business Before Buying?

Are you able to picture yourself working in this business? Does owning this business and the products or services it sells feel right? Do you feel comfortable positioning yourself as an expert in this industry? Do the lifestyle and earnings align with your long-term goals? Opportunites can present themselves in the most unexpected ways. Many Alberta businesses are available at very reasonable prices and present an opportunity for you to make improvements. You just have to understand the financial nature of the business you’re purchasing.

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What to Do After Buying a Business

Typical steps following buying a business include:

Understanding your obligations both to existing customers and contracts as well as creditors and vendors

Finding potential to re-negotiate or enter new contracts

Ensuring you understand the industry and compliance

Managing obligations to existing employees

These tips just scratch the surface of what to know when buying a business. Get started on your business hunt here.

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What Documents to Ask for When Buying a Business

This is where due diligence comes in. We always look at the following:

The state of the company receivables

Assets and inventory

Legal status

Financial obligations the business has including all outstanding debt and liabilities

Status of corporate/ business taxes including GST