If you’re considering selling your Alberta business, you need a proven process and resources to get the best results. We service a wide range of areas including Edmonton, Calgary, Lethbridge, Grande Prairie, Red Deer and more. Reach out to us today to schedule your free one hour consultation with one of our experienced business brokers.
If you’ve been asking yourself, “Am I ready to sell my business?” more and more often, chances are it’s something you should start exploring in earnest. A good first step is to use our free business valuation calculator to get an idea of whether the numbers add up to an opportunity.
A good time to sell is when you are experiencing healthy sales and earnings and you are seeing an upward trend. This way you are in a better position to find buyers looking for a safer investment where they’ll see continued growth in future earnings.
Valuing an Alberta business can take three approaches:
1
Earnings-based methods:
Considering the earnings potential and profits a business can earn.
2
Market-based methods:
Financial metrics applying various multiples such as financials, market conditions, sales trends, and intellectual property.
3
Asset-based methods:
This approach tends to look at either the adjusted book value or liquidation value of assets.
Should I Use a Broker to Sell My Business?
Yes, a broker protects your best interests and uses due diligence to ensure your business is valued properly. They’ll provide a professional Broker Opinion of Market Value (BOMV) and walk you through the entire process.
This is an involved process that generally includes the following steps:
Planning: Research, timing, target buyers, exit strategy, existing obligations, and more must all be considered when developing a sound plan to sell your business for top dollar.
Valuation: A BOMV determines the value of your business to attract buyers and see the best returns on your investment.
Information memorandum: This is an overview of high-level details about your company that you share with pre-qualified buyers after they sign a confidentiality agreement.
Finding a buyer: A marketing strategy based on the right buyers for your business model targets active prospects seeking business opportunities in Alberta.
Negotiation: Negotiation ensures you receive the right price and terms for your sale.
Finalizing the deal: All is confirmed, and paperwork is signed.
How to Choose a Business Broker?
There are a few things you want from a business broker:
An understanding of the market
Maximum exposure for a quick sale
Strong negotiation skills to ensure you receive the best price and terms
A proven marketing strategy
Access to interested buyers actively seeking a business opportunity like yours
A full-service business broker to address all your needs
A stellar reputation
A strong background in banking, financing and valuation
Your brokerage firm should consider your expectations and offer different opportunities to help meet your business objectives.
