Selling a Business

We have over 25 years' experience in conducting business valuation assignments for businesses operating in various industries including: manufacturing, retail, real estate, professional offices (dental, doctor, legal, etc), construction, insurance, food service, restaurants and wholesale. We provide expert reports and consultations for various purposes including purchase due diligence, preparation for sale of business, tax reorganization/estate planning, shareholder and divorce transactions/disputes.  Selling A Business Surrey. 

When preparing to sell a business, it is important to view the business from the perspective of a potential buyer. We have experience with helping businesses prepare their business for sale.  

If your company is an operating company versus a company which holds assets, your goal is to demonstrate strong cash flows and manageable risk. 

To improve cash flows, consider the following: 

• Look for ways to improve profit margins, reduce costs and create efficiencies 
• Compare your margins and profitablility to industry standards and make adjustments 
• Know what makes your business different from others and capitalize on your strengths 
• Remove any expenses that may be personal in nature
• Identify any one-time or non-recurring expenses
• Adjust or remove non-market value revenues or expenses

In addition to improving cash flows, reducing business risk is important as well. This can be done by: 

• Reducing supplier dependency
• Reducing customer dependency
• Demonstrating goodwill that is transferrable to a new owner (business reputation, recognizable name, brand, location and relationships)
• Ensure equipment is up to date
• Demonstrating innovation and up to date processes
• Demonstrating a stable and strong employee/management team
• Demonstrate up to date knowledge about your industry and ability to address any changes

If your company has intanglble assets or value, this will enhance overall business value. A few areas that you can consider are:  

• Creating intellectual property (unique patents or processes)
• Having strong business plans for the future
• A reliable customer list
• Strong corporate governance structure with procedures and policies in place
• Reconizable value to the community  
• A great reputation for service, quality, delivery and credibility
• Employee loyalty
• Up to date IT with cyber security features
• Great training and education programs for employees
• Onging research and development projects
• Built-in capacity to grow

1. A seller of a business is interested in enhancing the value of his business by improving the income statement and balance sheet results.
2. A seller of a business is interested in improving the value of his business by streamlining his products and services prior to sale to maximize profitability. 
3. A veterinary clinic wishes to consider a proposal from a buyer to purchase the clinic. The owner of the clinic needs assistance is evaluating the offer. 
4. A business was sold. The sellers accepted a price which included an earn-out payment based on financial results for a period after the sale. The financial results post-sale were significantly different from expected and as such, an investigation into the financial results was required.