Buying a business – Survival Guide
Congratulations on the consideration of buying a business. Acquiring and owning your own company can be one of the most rewarding experiences of your life. If you are looking for the current business opportunities Welstand has available please CLICK HERE. If you are looking for more information on the process of buying a business we have included a some information below. For more information check out the FAQ page, or call us at anytime.
Is Business Ownership for You?
Generally speaking there are three types of purchasers we work with. Experienced investors, experienced business operators and first time buyers. If you would consider yourself a first time businesses owner, the question above is for you. Dig into this question, as owning your own company is no walk in the park. There is no need for us to sugar coat it, the reason why the financial returns can be so great, is because the risks are higher and the work is harder.
What to Look for in a Business?
- Historically stable or growing revenues
- Great location
- Attractive lease
- Stable workforce
- Built in clientele
- Strong brand
- Accurate accounting
- Developed systems and procedures
- Competitive advantages
- Does it cash flow cover my debt service costs
- Will it provide the lifestyle I desire
- Many more
How Much can I Afford?
There are many variables to accurately answer this question and every buyer is different. The following list are some factors that will affect how much business you can by. Investable cash on had (down payment available), equity in your home or other assets, cash flow of the company, assets of the company, personal credit score, previous business experience, partnered investors, comfort with debt. Generally we see down payments to discretionary earnings are 1:1. That is, if you put $100,000 into a business as a down payment you will see $100,000 in discretionary earnings each year.
How can a broker help? Here’s How:
- Accurate Valuation.
- Drawing from peer comps and industry data we have access to the most up to date comparables of what similar companies are selling for, so you don’t overpay.
- Extensive business valuation experience. We can look at your deal and evaluate if it is in line with your goals.
- Certified Professionals
- Our brokers are licensed with CBI’s (certified business intermediary) a designation awarded through the IBBA (International Business Brokers Association)
- Our brokers are licensed Realtors with the Real Estate Council of BC
- On average our brokers spend $8,000.00 a year on continuing education and conferences to ensure they are leaders in the industry.
- Focused and Specialized
- We only operate in small towns in the interior of BC. We know your market and understand business in the region.
- We are experts in businesses’ the size your are looking for – $250,000 to 3 million in annual revenue. 2 – 75 staff.
- Other firms can sell houses and commercial retail space. We focus on one thing – business sales.
- Our Network of Professionals is Now on Your Team
- Investment Banks
- Private Lenders and Equity Groups
- Marketers, Web Specialists
- Business Plan Writers
- Equipment Appraisers
You will need a wide variety of skill sets when acquiring your business and we only work with the best.
- Skillful Negotiation
- Negotiation isn’t optional for a successful purchase, it is essential to a successful purchase. With 15+ years of negotiating transactions, we are experts.
- We are Business Owners Ourselves
- Our founder has owned and operated over 11 small business across Canada, in multiple industries.
- We truly understand being an entrepreneur and a small business owner. This knowledge comes in very helpful during your purchase.
- Access to our list of pre-approved sellers
- We have an active database of companies for sale that have been pre-screened on cash flow and lending requirements.
- Professional Coaching
- Coaching on how to prepare yourself for buying a business
- Coaching through presenting an offer
- Coaching on due diligence
- Coaching on closing
- Coaching on final transition and operation of your new company
At Welstand we are huge advocates of business ownership. Owning your own company can bring pride, financial independence, freedom and challenge unlike anything else. Our team would be privileged to help you find your perfect opportunity.
Below is a quick request form which will send information directly to Scott Duke for a follow-up within 2 – 48 hours. Or feel free to contact us through any of our contact channels listed below.