Buying a Business
Buying a Business
Some Advantages of Buying an Existing Business:
For more detailed breakdown please contact a Sunbelt Northern Ontario professional today.
A proven business model
Among other attributes, an existing business will typically have systems and processes, supplier relationships, and key personnel in place. Previous owners can inform buyers of past trials & errors as well as best practices in running the business, saving a new owner time and money.
Established customer base & reputation
When purchasing an existing business, you will gain insights on existing customer relationships (including details on any current contracts) and the value that these relationships bring to the business.
Immediate cash flow from ongoing business activities
Purchasing an active business will typically result in an immediate return on investment as the business continues to generate cash flows.
Availability of financing
A history of profitability, well-kept business records and a business plan in place will make it easier to obtain financing from lenders. Additionally, financing is often times provided by the seller.
Training provided by the seller
Most often in a business transaction, the previous owners will provide training for an agreed-upon transitionary period to ensure that the buyers are in the best possible position to own and operate the business.
Trained employees
Having trained employees in place who have been with the company for some time will not only save a new owner the time & costs associated with hiring and training employees, but will help a new owner understand the business and industry in which it operates.
Products and services
Purchasing an existing business provides a new owner with products and/or services in place which often includes inventory systems and levels.
The Business Buying Process
Our representatives will help you find the right business and under the right terms and conditions. We provide private and confidential discussions at no cost, and may provide you with information that could make your purchase a life fulfilling and financially rewarding experience, or save you from a grave error. We have the skills, experience, training, technology, systems, processes, resources, and most importantly the commitment to help you to achieve your goals.
Below are some of the steps our representatives take in finding the right business for buyers:
Helping clients to identify and evaluate the right opportunity is a valuable part of our service. We begin with a thorough review of your needs, interests, skills, background, finances, likes and dislikes to ensure that we can identify the right fit for clients.
Once we have accurately identified the range of businesses that suit your objectives, we search our database thousands of businesses to match your interests against all potential opportunities. We will also monitor our database regularly to identify fresh opportunities as soon as they become available. When you are working closely with a Sunbelt intermediary, you will often discover new opportunities before they are in the public domain, as many businesses we do not make public due to strict confidentiality concerns.
Sunbelt also provides a fee-based service to conduct a targeted search for businesses that are on the market. This method is often the best way to target and acquire the ideal business that you are looking for, without open market competition.
Managing confidentiality is a critical factor for most sellers. The seller cannot risk letting their staff, suppliers, bankers, customers or competitors know that they are selling. We know how to manage confidentiality and prevent the risk of litigation that a breach of confidentiality could create.
Identifying and understanding the real value of a business is not always easy. In most cases, the seller’s financials do not fully reflect the true benefits of ownership. Similarly, it’s not always easy to envision the full potential of a business from a written presentation. Our intermediaries are experienced in recognizing and communicating the benefits, opportunities, and risks relating to business ownership opportunities.
Countless details need attending to in the process of buying a business. Addressing these details in a timely manner and managing each step of the process in the right order is critical to a successful outcome. We’ll manage the process, keep things on track, and keep you fully informed every step of the way.
It will potentially take a team of experts to successfully purchase a business and protect your interests in the process. Lawyers, accountants, bankers, insurance and tax specialists, financial planners, business coaches and consultants are all part of the extended network of professionals that we can help put on your team.
Our team strives to reach a win-win outcome when structuring deals between buyers and sellers. Understanding your unique needs and objectives as well as those of the buyer is critical to negotiating a successful agreement. Our approach to facilitating successful win-win deals is one of the reasons that we sell more businesses than any other business intermediaries in the world.
Buying a business often requires many rounds of creative problem solving. Whether it’s structuring the terms of training and coaching or creating the best approach to minimize tax, our network of industry specialists and consulting professionals provides creative problem solving expertise virtually 24 hours a day.
Sunbelt is always aware of the current business financing options in the marketplace as well as general lender requirements. We regularly provide assistance and financing recommendations to our clients who require additional capital.
Financing a Business Purchase
When considering financing options, it is important to consider both your short and long-term needs. Failing to consider long-term implications of a business financing choice may impact the viability of the business.
In order to ensure that financing request processes are addressed appropriately, our team will assist with the financing process and negotiations with prospective lenders, if necessary. Our team will identify possible financing sources and provide options that are suitable for the long-term success of your business. Throughout the process we will ensure all parties are working on the same time lines and towards the same goals.
Individual Clients
When considering financing options, it is important to consider both your short and long-term needs. Failing to consider long-term implications of a business financing choice may impact the viability of the business.
In order to ensure that financing request processes are addressed appropriately, our team will assist with the financing process and negotiations with prospective lenders, if necessary. Our team will identify possible financing sources and provide options that are suitable for the long-term success of your business. Throughout the process we will ensure all parties are working on the same time lines and towards the same goals.
General Statistics
An existing successful business lets you take control of your destiny with low risk and high potential rewards.
From the World’s #1 Business Brokerage Firm
INSIDER TIPS ON BUYING A BUSINESS IN CANADA
Owners, investors, and corporations who buy an established business have a much higher rate of success than those who start one. However, business ownership is not for everyone. Insider Tips on Buying a Business in Canada will help you to decide if it is for you and if so, show you how to buy the right business for the right price and terms.
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