As a business broker in Toronto, I constantly receive phone calls and email form business owners looking into selling their businesses. Unfortunately, a large number of business owners have a misconception about the reasons why they should sell their Toronto businesses. There is a common belief that you only sell a business when you don't make money or when something is fundamentally wrong with the business. This can not be further from the truth.
The reality is that very few non profitable businesses actually sell. Most business buyers are simply looking for a job replacement, a way to make a living. A business with serious profitability problems can not help these potential buyers.
My advice to business owners looking to sell an unprofitable business is to explore other venues. Sometimes, some small actions can dramatically increase the business profits. Sometimes it's more realistic to simply shut the business down and sell the assets. Continuing to operate a money loosing business on the hope that a potential buyer will come is very naive.
In some rare circumstances, a larger business buyer can purchase the business and reduce its costs thanks to large economies of scale or scope from its current business. I recently sold a large manufacturer of promotional products who was loosing money. The buyer integrated it with its current business and was able to cut costs dramatically. The buyer also used the current clients and sold them other products.
In general terms businesses who are profitable and have a consistent track record of profits are in demand and generally sell in reasonable time. On the other hand, businesses with no track record or unprofitable businesses have very low chances of selling unless they are attractive to larger companies very active in the mergers and acquisitions market.
The reality is that very few non profitable businesses actually sell. Most business buyers are simply looking for a job replacement, a way to make a living. A business with serious profitability problems can not help these potential buyers.
My advice to business owners looking to sell an unprofitable business is to explore other venues. Sometimes, some small actions can dramatically increase the business profits. Sometimes it's more realistic to simply shut the business down and sell the assets. Continuing to operate a money loosing business on the hope that a potential buyer will come is very naive.
In some rare circumstances, a larger business buyer can purchase the business and reduce its costs thanks to large economies of scale or scope from its current business. I recently sold a large manufacturer of promotional products who was loosing money. The buyer integrated it with its current business and was able to cut costs dramatically. The buyer also used the current clients and sold them other products.
In general terms businesses who are profitable and have a consistent track record of profits are in demand and generally sell in reasonable time. On the other hand, businesses with no track record or unprofitable businesses have very low chances of selling unless they are attractive to larger companies very active in the mergers and acquisitions market.
Hello I am living in Chicago but I am here for search restaurant for sale in Toronto. So I just want to ask to you Is that possible to search it online? If yes, then send me a mail.
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