Ultimately, any business is worth what somebody else would be willing to pay for it. While seemingly an obvious and simplistic statement, many business owners are challenged to objectively view their business in this manner. How that market value is established and the right asking price is determined can be subjects of complex formulas, depending upon the size and nature of the business. The two main factors that determine worth: cash flow and risk.

The main advantage of buying rather than starting one from scratch, is that there is existing cash flow (presumably, positive cash flow). Beyond that, there are existing processes, people and resources in place from day one. While these aspects may be improved by an in-coming buyer, the fact that they exist in some fashion accelerates the possible ROI opportunities. Additionally, existing businesses are typically easier to finance. To learn more advantages, contact one of our brokers.

Business transactions typically entail a mix of buyer’s equity, seller financing, and third party financing. Which mix is right depends on your personal investment capability, the specific business’ dynamics, and economic trends. Our team of professionals is based in Northern Ontario and are readily available to assist in sourcing appropriate financing for business transitions across Northern Ontario.

The time required for a sale depends on many factors including the price of your business, current market conditions, the type of business, and your willingness to finance all or part of the purchase price. Transaction timelines typically take anywhere from 6 to 18 months to sell a business. However, a business could sell much sooner or take longer as many factors come into play when selling a business. With reasonable pricing and terms, one could expedite the sale.