Greg Kells is the Founder and President of Sunbelt Canada, the number one business brokerage in the country. He has directly facilitated the sale of over 1,000 businesses and is a two-time winner of Businessperson of the Year in Ottawa. Greg is passionate about mentoring and teaching, with experience as a guest lecturer at Harvard, Yale, Duke, and various colleges across Canada. He is active in numerous community organizations and advocates for economic empowerment, the environment, science, and technology.
As you read in part one of selling a business: what is your business worth, a seller’s price expectation needs to be in line with market reality. Most financial statements of small businesses are prepared to minimize the tax burden for the company and its owners. To reflect the company’s true earnings, we need to recast/normalize the balance sheet and income (profit and loss) statement.
If beauty is in the eye of the beholder, then the worth of a business lies in the eye of the market. For the market is really what decides the price an owner will get for their business when they go to sell – the scenario most have in mind when they ask what their business is worth.
Buyers want a business with a proven track record of consistent financial performance with solid/growing revenue and earnings. Yet, most of us are rather flabby when it comes to fiscal fitness. Spending some time with a trainer/coach can boost your strength and health and business worth.
Some people tell too much online. They announce to the world that they're going on vacation, letting potential burglars know that they'll be away from home for two full weeks. Or they reveal personal details that result in their identity being stolen.
Potential buyers of a business want to know upfront why it’s for sale. They’re naturally suspicious--if this is such a good business, then why is the business for sale? What is wrong?
No matter how successful you’ve been in your previous work life, becoming a first-time small business owner can be tough. As perhaps half of business buyers in Canada were born in the baby boomer era, it’s worth taking a closer look at the typical challenges from their perspective.
