3 items that are critical to the sucess of a business brokerage firm are:
- Determining a Fair Selling price
- Using an effective marketing strategy
- A trusted and experienced agent that will see the business sale to a sucessful conclusion.
Let me expain each item:
- Determining A selling price is an art and not a science. Ultimately it comes down to what a buyer is willing to pay a seller. The selling price is the product of the adjusted bottom line times a multiple and then again adjusted were necessary for inventory and real estate.
Some sophisticated valuations use terms such as alpha and omega but the ultimate benchmark is found in the 700 page business reference guide on each businesses published annually and Tom West of the Business Brokerage Press which although USA Organisations can be a useful guide for Canadian transactions. Another way to check if Selling prices are "In the Ballgame" is to see if the business cash flow under the new owner would sustain his or her personal requirement and the payback of the acquisition loan.
- Once the listing has been agreed to, what marketing strategy will find the ideal buyer? We
use BizBuySell as the tool that gets the information to potential buyers. Although American, it has a high exposure to Canadian buyers. Of course our e-mails are constantly filled with
requests for businesses from equity investors and others and the presence of listings on our web site will also create demand. Good well priced listings will always create interest.
- Ace Cetinski CPA CA MBA has the business experience to "talk business" and has the training to "do the job". He has recently sold his 2nd CPA practice to devote his full attention to sell your business!
Contact Ace Business Ventures Inc. today at 780-686-2651 and he will be pleased to discuss your situation free of charge!