Business for Sale
Finding one isn’t always that easy. Here are some options…
If you are looking to buy a business for sale there are certainly many options available to you to start your search. This article will explore the different options that Canadian business buyers have to find the right business for them.
When you are looking to find a business for sale a route that many people take is to deal with a professional business broker. This is a person who’s professional focus is on the purchase and sale of businesses. There are many advantages to dealing with a business broker. Firstly, since this is their profession they are in ‘the know’ of business for sale opportunities in the area. They are better informed of the business for sale market and stay current on local trends and usually know the key players to help point you in the direction of financing and other professionals you may need to retain during your business search. Also, (and this is obvious) business brokers have business for sale listings so if you are a business buyer contacting a broker is usually a good first step. Another important role that the broker plays is the he or she helps facilitate the entire business for sale process between the buyer and the seller. Selling a business is a completely different process from selling commercial real estate – there is usually much more complexity involved in the transaction and a different skill set is required. For instance, if you are looking at an established business for sale, a broker will serve as the intermediary between the buyer and seller and offer his or her expert guidance. In a business sale there usually arise many complex issues that need the skilled guidance of a professional that can offer input. Some of these issues include: employees and how they will be managed during the transition process, confidentially, due diligence, working capital and inventory transition issues, equipment leases, property leases, intellectual property, licenses, non-compete agreements, training and support arrangements after the sale, franchise approval, environmental regulations, equipment appraisals, asset sale vs share sale and so on.
As you can see, buying a business for sale is unlike a commercial real estate transaction. Going with a professional is a wise choice. In the Province of Ontario, business brokers need to meet educational and licensing standards in order to help people buy or sell a business.
Do it Yourself
You can try to find a business for sale yourself. There are many different options to take here. For instance, searching internet classifieds sites, newspaper listings and talking to people to see if you know anyone in your network that might have a business for sale. This is typically a much more difficult process and is full of risks to both the buyer and the seller. If you decide to go it alone and you don’t have the relevant experience to buy a business for sale you might find yourself at the short end of the stick when it comes to unscrupulous sellers. The role of the business broker is to add complete transparency to the process, which may not be the complete case if you do decide to go it alone.
Buying or selling a business for sale is a complicated and lengthy process. Please use caution when you do decide to go into the market and choose a business broker that you are comfortable with. There are many businesses for sale, but only one business for sale that is right for you. Good luck!
About the Author
Business for Sale in Toronto, Hamilton and surrounding areas in southern Ontario, Canada. We are a full service business brokerage here to help you buy or sell a business.
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