Sell a business
CANADEST provides valuable assistance to entrepreneurs wishing to proceed with the sale of their business. Experienced and attentive, our consultants offer their skills to help you get the right price from the sale or your business, to properly doing the business valuation is critical before to put on the market and to ensure the transfer to the new owner. Our consultants will also prepare you for the negotiation process, and to plan an exit strategy for you.
One of the biggest advantages of our association in the process of your business for sale is that our services are strictly confidential. Consequently, when you use our services, none of your employees, suppliers, or customers will be made aware of the sale of your business until the transaction is completed.
This allows you to maintain a relationship of trust with them and to avoid creating a sense of uncertainty that could affect your activities.
Another advantage of dealing with us regarding a business for sale is our extensive networking. Indeed, we have various strategies to reach a large pool of buyers at the provincial, national, and international levels.
Are you looking for support for your project? Don't wait any longer and contact our team with the form below. We offer our services in complete confidentiality and we will respond to you as soon as possible.
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Transferring Your Business: What Are the Key Steps to Achieve It?
Retirement is approaching, and you’re ready to pass the torch?
Or perhaps, you’re planning to venture into business by acquiring an existing company?
Whether you’re an owner looking to sell your business or an aspiring entrepreneur seeking an opportunity, it’s important to follow a well-defined process to ensure the success of a business transfer and minimize associated risks.
The goal? To achieve a win-win transaction for both the seller and the buyer!
But what exactly is a business transfer?
A business transfer refers to the process of transferring ownership rights and responsibilities of a business from one owner to another, either through sale or merger of the company. Business transfer is not merely a matter of law, taxation, and numbers. For it to be successful, it must ensure a qualified successor who meets the seller’s requirements while ensuring continuity of business operations and a certain level of stability for employees
What are the key steps in a business transfer?
The success of a business transfer involves several key steps. To ensure a smooth transition, it is highly recommended to seek the guidance of a professional advisor, such as a business broker.
1st Step: Plan the Transfer Process While Maintaining Confidentiality
Planning will allow you to execute a more efficient and advantageous sale. It helps you define the objectives of the sale or acquisition. Is it an asset or stock sale? To do this, you’ll need to analyze the tax and legal advantages of each option. You must also ensure in advance that all legal documents are in order. Throughout the process, it’s crucial to maintain confidentiality to avoid disrupting business activities.
2nd Step: Evaluate the Business
Realistically and objectively evaluating the Fair Market Value of the business is the first step. This can be done by examining its financial statements, assets, liabilities, and considering economic factors that may affect its value. The purpose of this evaluation is to obtain an accurate picture of the business and its future prospects to determine its value and negotiate the selling price. Ideally, you should be accompanied by a business broker with the expertise and ability to scientifically assess the business’s value.
3rd Step: Seek Potential Buyers
Once the selling price is determined, you can begin searching for potential buyers. Again, it’s advisable to enlist the help of a business broker to facilitate this search and ensure the confidentiality of sensitive business information. One advantage of working with a broker is their own network of potential buyers. The goal of this step is to create competition among potential buyers to obtain the best price and conditions for the sale.
4th Step: Negotiate the Sales Contract
Once a potential buyer is identified, the next step is to negotiate the sales contract. This step involves discussing and negotiating the terms of the contract, including the selling price, payment terms, warranties, non-compete clauses, and more. Having a conductor, such as a business broker, at this stage is advantageous to ensure that the interests of all parties are considered.
5th Step: Due Diligence
Before finalizing the sale, the buyer must conduct a thorough due diligence of the business to ensure there are no hidden risks or significant liabilities. This may involve an evaluation of financial statements, assets, contracts, ongoing litigation, and more. The seller must provide all requested information transparently and comprehensively.
6th Step: Closing the Deal
Once due diligence is complete, and both the buyer and seller are satisfied, they can proceed to close the deal. This involves drafting and signing a sales contract, as well as other legal documents necessary for the transaction’s closure.
7th Step: Transaction Closure and Transition
The final step of the business transfer is the transaction closure, which includes the final settlement of payment. This step involves completing all administrative, legal, and financial formalities required to transfer ownership of the business to the buyer. This may include tasks such as terminating existing contracts, transferring licenses and permits, settling debts and taxes, and more. It’s important to adhere to the deadlines and obligations stipulated in the contract to avoid any disputes or delays.
Finally, to facilitate a smooth transition of the business from the seller to the buyer, it’s essential to plan for a transition and training period. This phase ensures a seamless transfer of responsibilities and guarantees operational continuity.
In conclusion, a business transfer is a complex process that involves several key steps. Whether you’re a seller or a buyer, CANADEST Accredited Business Brokers are here to assist you! Start preparing your questions now, and we’ll be happy to answer them during our conference.
Canadest is also...
We act with integrity at all times in order to earn and maintain the trust and respect of our customers, our suppliers, our colleagues and our partners.
We promise to be diligent in all the steps we undertake. We also need to exercise judgment, professionalism and rigour.
We encourage the development of skills, knowledge and potential of our advisors to direct our conduct on best practices for business brokerage, in accordance with provincial laws and regulations applicable to a transaction.