If you are a business owner, the decision to sell a business is a major step to take.  Preparing to list your business for sale is a major undertaking in itself and steps should be taken to ensure that your company sells as quickly as possible and that you achieve the best selling price.

Here is a list of some things you should keep in mind before your list your business for sale.





Equipment and machinery maintenance

It is important to ensure that your equipment is properly operating and serviced.  A potential buyer will investigate the condition of your equipment and if it is not operating properly that could raise a red flag.  If you have a service or maintenance contract it is advisable to have these records available.





Overall appearance of your business

It is highly advisable that your business for sale be kept in a neat and tidy condition.  All customer areas as well as plant or shop space should be well organized, and in immaculate condition.  An unkempt business operation is an indicator to a business buyer that perhaps the overall business is not properly manages.





Relevant operating procedures documentation

A business buyer may be intimidated by the prospect of owning and operating a business so it would be advisable to set his or her mind at ease by providing documentation on critical procedures required to run the business.  Documented operating procedures should be prepared prior to listing your business for sale.





Information about your customers

One of the main questions a buyer will ask about your company will be about your customers.  How well do you know your customer base?  You should know who your top customers are, what percentage of sales your best customers represent and make note of any special circumstances (example –  long term customer contracts, major new accounts, etc).

Staffing requirements

Be prepared to discuss staffing issues with a business buyer.  You should know the current level of staffing, what each person does (position descriptions are helpful), how much payroll represents and if there are any seasonal issues or special skills needed with respect to your employees.





Take a physical inventory

Just before your put your business for sale you should do a thorough inventory.  Buyers will ask about inventory levels so it is recommended to have an accurate record to preset when asked.  Discard any unsellable items and keep your stock area organized and tidy.





Be open about any legal issues

Be forthright about any legal issues that the company may be facing.  Offer this information to potential buyers.  The worst thing you can do when you list your business for sale is to keep information hidden.  A prudent buyer will uncover these issues during due diligence.  Frankness is the best policy.

Find professionals

Besides a business broker, you will need to retain the services of a lawyer and accountant in order to sell your business.  A lawyer is a key person to retain to review all contracts and agreements before you sign them.  An accountant will help your with the accounting issues, financial due diligence and taxation issues that are triggered at a business sale.





Financial information

You will need to have some significant financial information in order if you want to successfully list your business for sale and attract good buyers.  Ideally, you should have 3-years of financial statements that have been prepared by an accountant.  You will also need to have income tax returns, the most recent period’s P&L, sales tax returns, bank statements, employment tax filings, A/R and A/P aging schedules, inventory schedule and asset list – among other things! 

Listing your business for sale is a big decision.  Getting prepared before you list your company with a business broker is the best advantage you can have to sell your business with confidence.

A bank short sale is a great way for investors to buy property at a fraction of the market price; however there are several steps that should be followed in order to guarantee a successful and profitable transaction. These tips include using a real estate agent experienced in the short sale process, doing research on the short sale specifics, identifying the correct owner of the property, file all associated paperwork in a timely and efficient manner, and completing a thorough inspection of the property before finalizing or signing any papers.

Not all real estate agents are familiar with the short sale process. Some professionals view the process as a last ditch effort by banks or other lending institutions to sell off debt accumulated through bad loans and therefore avoid such proceedings. However, this could not be farther from the truth. Many agents have discovered that a short sale is a great way to acquire property at greatly reduced prices and have begun to specialize in such dealings. These are agents you want to seek out, both for their experience and their connections. They will be able to guide you through the process step by step.

Another important tip is to fully research the short sale specifics. The best way to find out information on a particular property is to check the public records. In this manner you can discover who is on the title for the property. You can also find out how much money is owed to the bank through the property. This will help you determine a proper asking price to approach the mortgage holder with. The proper price should approximate the amount owed to the lending institution. You should also be able to discover if the property has been foreclosed upon. If these proceedings have been initiated, then a short sale is not possible. Bank short sales can only be completed during pre-foreclosure proceedings. You can also find out if the property in question has multiple loans against it. Avoid properties with multiple mortgages against it.

A short sale is a quick process that must be completed before the property moves into foreclosure. This means that time is usually of the essence. Paperwork must be filed out in a timely manner and documents must be completed according to strict deadlines. Make sure that you attain all the associated paperwork during your initial visit to the bank or loaning office. Not attaining all of the paperwork in the initial visit can lead to time consuming delays that may derail the short sale. Also make sure to ask the loan officer for a list of all required documentation needed for a successful short sale. Missing only one piece of paper or one simple omission of information can make a short sale unsuccessful.

Finally, once all of the paperwork has been completed, the proper documents filed, and the research has been done, it is a good idea to have the property in question inspected by a licensed home inspector. Many properties fall into disrepair when they fall back into the ownership of the bank. Therefore, it is wise to identify all the current issues associated with the assumption of ownership. After all, a house isn’t worth much if it needs a completely new foundation. Still, it is certain anyone looking for investment properties; a bank short sale is usually always profitable. 

Finding one isn’t always that easy.  Here are some options…

If you are looking to buy a business for sale there are certainly many options available to you to start your search.  This article will explore the different options that Canadian business buyers have to find the right business for them.

Business Brokers

When you are looking to find a business for sale a route that many people take is to deal with a professional business broker.  This is a person who’s professional focus is on the purchase and sale of businesses.  There are many advantages to dealing with a business broker.  Firstly, since this is their profession they are in ‘the know’ of business for sale opportunities in the area.  They are better informed of the business for sale market and stay current on local trends and usually know the key players to help point you in the direction of financing and other professionals you may need to retain during your business search.  Also, (and this is obvious) business brokers have business for sale listings so if you are a business buyer contacting a broker is usually a good first step.  Another important role that the broker plays is the he or she helps facilitate the entire business for sale process between the buyer and the seller.  Selling a business is a completely different process from selling commercial real estate – there is usually much more complexity involved in the transaction and a different skill set is required.  For instance, if you are looking at an established business for sale, a broker will serve as the intermediary between the buyer and seller and offer his or her expert guidance.  In a business sale there usually arise many complex issues that need the skilled guidance of a professional that can offer input.  Some of these issues include:  employees and how they will be managed during the transition process, confidentially, due diligence, working capital and inventory transition issues, equipment leases, property leases, intellectual property, licenses, non-compete agreements, training and support arrangements after the sale, franchise approval, environmental regulations, equipment appraisals, asset sale vs share sale and so on. 

As you can see, buying a business for sale is unlike a commercial real estate transaction.  Going with a professional is a wise choice.  In the Province of Ontario, business brokers need to meet educational and licensing standards in order to help people buy or sell a business.

Do it Yourself

You can try to find a business for sale yourself.  There are many different options to take here.  For instance, searching internet classifieds sites, newspaper listings and talking to people to see if you know anyone in your network that might have a business for sale.  This is typically a much more difficult process and is full of risks to both the buyer and the seller.  If you decide to go it alone and you don’t have the relevant experience to buy a business for sale you might find yourself at the short end of the stick when it comes to unscrupulous sellers.  The role of the business broker is to add complete transparency to the process, which may not be the complete case if you do decide to go it alone.

Buying or selling a business for sale is a complicated and lengthy process.  Please use caution when you do decide to go into the market and choose a business broker that you are comfortable with.  There are many businesses for sale, but only one business for sale that is right for you.  Good luck!