{"id":1557,"date":"2021-02-11T08:21:20","date_gmt":"2021-02-11T08:21:20","guid":{"rendered":"https:\/\/www.sunbeltcanada.com\/barrie\/?page_id=1557"},"modified":"2023-10-18T16:22:00","modified_gmt":"2023-10-18T16:22:00","slug":"how-to-sell-a-business","status":"publish","type":"page","link":"https:\/\/www.sunbeltcanada.com\/barrie\/how-to-sell-a-business\/","title":{"rendered":"How to Sell a Business"},"content":{"rendered":"
[vc_row gap=”35″ content_placement=”middle”][vc_column width=”1\/2″][vc_single_image image=”1590″ img_size=”full” style=”vc_box_rounded”][\/vc_column][vc_column width=”1\/2″][vc_column_text]\n

Sell Your Business With Confidence!<\/h2>\n

Selling a business is a complex and challenging process with serious financial, legal, tax & lifestyle implications. As the world\u2019s largest and most successful network of business brokers, we provide outstanding resources, expertise, and are dedicated to providing you the best possible outcome.<\/p>\n

Below you will find information on some of the key considerations to sell a business in Barrie.<\/p>\n

If you have any questions that we have not covered, please don\u2019t hesitate to contact us<\/a>.[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1620127841637{background-color: #f9f9f9 !important;}”][vc_column][vc_column_text]\n

Tips on Selling a Business<\/h3>\n

With such a healthy market of quality businesses in Canada, and half of those planning to transfer control within the next five years, it\u2019s no surprise business owners will be selling into a very competitive marketplace.<\/p>\n

Below are some tips for selling your business and protecting its value, so you can increase your personal wealth and reduce the taxes you will need to pay on the proceeds.<\/p>\n

If you want to read more, download Insider Tips on Selling a Business in Canada<\/a>.[\/vc_column_text][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1620128443078{padding-top: 16px !important;padding-bottom: 24px !important;background-color: #ffffff !important;}”][vc_column][vc_tta_accordion style=”outline” c_icon=”chevron” active_section=”1″ collapsible_all=”true”][vc_tta_section title=”Plan Ahead” tab_id=”plan-ahead”][vc_column_text]For the best results, start planning early, allowing at least six months to analyze the business, two years to build value and take advantage of tax strategies to maximize the proceeds of the sale, and another year to sell. Unfortunately, not all business owners have the luxury to plan that far ahead, sometimes driven by unexpected circumstances. Every transaction that we work on is unique and tailored to the specific needs of our clients.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Know your worth & how to add value” tab_id=”know-your-worth-how-to-add-value”][vc_column_text]Identify changes and improvements you could make to add value. Training key employees and making yourself replaceable is a good place to start. A business is more attractive in the eyes of buyers when they know that there are resources in place to successfully run the business once ownership transfers.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Consult with Accounting Professional” tab_id=”consult-with-accounting-professional”][vc_column_text]Engage tax, accounting and estate professionals and work with them to structure your business so that you can maximize the proceeds of your sale and pay no more tax than necessary. The two primary tax structures in the sale of a business are the shares of a corporation and the assets of a business. Tax considerations and lead times differ with each option. The difference between the cost of the shares and the sale proceeds is considered a capital gain. By taking advantage of the lifetime capital gains exemption (LCGE), share owners can potentially receive capital gains on a tax-free basis. There is, however, a 24-month hold rule to claim capital gains exemption. Share ownership can be split among family members or placed in a family trust so that the tax benefit can be used by each member, thus allowing a much larger tax-free capital gain.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Talk to an Experienced Business Broker” tab_id=”talk-to-an-experienced-business-broker”][vc_column_text]Engage an experienced business broker from a reputable firm. Business brokers understand the business sale process, know how to accurately price a business and find\/work with buyers. A prudent business broker will maintain confidentiality throughout the sale process, successfully negotiate offers, manage the buyer\u2019s due diligence and address other items that need careful balancing to bring the deal to a conclusion that works for all parties. Before engaging in this important transaction, you should request referrals or testimonials from successful transactions the broker has previously worked on.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Ensure your records are in order” tab_id=”ensure-your-records-are-in-order”][vc_column_text]Poor record keeping is one of the biggest roadblocks in selling a business. Ensure that your books, records and financial statements are up-to-date. Prepare at least three years\u2019 worth of financial history. Documents need to be current and correct, demonstrating timely remittances and filings.[\/vc_column_text][\/vc_tta_section][vc_tta_section title=”Be realistic in your expectations” tab_id=”be-realistic-in-your-expectations”][vc_column_text]The Most Probable Selling Price (MPSP), prepared by our team for the seller\u2019s eyes only, represents what your business would most probably sell for on an open market as is, in use, and in place. It factors the true earning potential of your business, the current state of your business, the associated risks and what the market is would be willing to pay for your business. A seller\u2019s expectations need to be in line with the market reality in regards to the most probable selling price (MPSP) of the business, as well as the length of time it may take to sell the business. While there are many factors that affect the time that it will take to sell a business (the asking price, the buyer\u2019s ability to secure financing to purchase the business, local economic conditions, the nature of the business and where it is located, etc.) a period of 6 to 18 months is typical.[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][vc_row full_width=”stretch_row” gap=”35″ content_placement=”middle” css=”.vc_custom_1620128326207{margin-bottom: -40px !important;background-color: #f9f9f9 !important;}”][vc_column width=”1\/2″][vc_column_text]\n

Do you have other questions?<\/h3>\n

Be sure to visit Seller FAQs<\/a> to answers to the following questions.<\/p>\n

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