How to Sell Your Business
In the coming decade, over $2 Trillion in small business assets in Canada are expected to change hands as 76% of owners look to bow out. For many of these owners, the sale of their business will be their first and only experience with an M&A transaction. There is a tremendous amount at stake for owners looking to fund their retirement or next project.
In this guide to selling your business, we set out the steps, processes, and options when selling a business that can help business owners maximize the return from their years of hard work.
Chapters in this guide
Laying Your Cards on the Table
How and when to provide detailed information on your business to a potential buyer while protecting your confidential and proprietary information.
How to Value Your Business
You want to receive a fair price in exchange for the business you worked so hard to build. Obtaining a valuation from a Chartered Business Valuator (CBV) is a great starting point.
Using Projections to Help the Sale
Projections demonstrate the future cash flow a prospective buyer can expect from the company if they purchase it, and are critical to determining the sale price.
Restructuring Your Business for Tax Efficiency
Restructuring your business prior to a sale can maximize value and minimize taxes through the sale structure, capital gains planning and family trusts.
Assessing Values for Different Purchasers
The value of your business and ultimate sale price can differ for private equity buyers, strategic buyers and sales within a family.
A review of the benefits, risks, process and financing of the sale when a management buyout occurs.
Common Forms of Consideration
A review of the payment options available when negotiating the sale of a business, including cash, shares, assumption of debt, earn-outs, holdbacks, and promissory notes.
Tax and Estate Planning Strategies for the Sale Proceeds
Post-sale tax considerations sellers should consider include estate planning intentions, planned distribution of assets upon death, philanthropy, and personal needs.
Working capital disagreements can derail a deal and can become an unwelcome contentious issue even subsequent to a deal closing. But problems can be prevented.