Very few businesses have come to the market in the last few weeks. I am personally receiving an increasing number of calls from business owners interested in selling. Unfortunately a large number of these businesses are not ready yet to go to market.
Businesses that don't have a long track record of success are generally difficult to sell. I personally advice business buyers to verify the existence of proof of sustained profitability before seriously considering to buy a business. A relatively new business hasn't have the to prove that its business model is viable in the long term and as a result such a business is risky to buy.
I also receive a number of phone calls from new franchisees who are struggling financially and who see selling as a possible exit from their financial nightmare. Unfortunately most small business buyers are looking for a business as a job replacement not as a turn-around investment. Therefore selling is definitively not a common way out financial distress.
As a business broker in Toronto, I am very selective when choosing which businesses I want to take to market. In general a profitable business with growth prospects and a motivated seller with a legitimate reason for selling does sell in a reasonable time and at a fair price.
Below are some businesses I have listed recently and that I consider good opportunities to make a decent living for potential buyers.
Air Conditioning and Refrigeration Maintenance in Kitchener Ontario
Distribution of Synthetic Turf Business for sale in Mississauga
Ontario Health Care Private Career College Business for Sale
Manufacturing Lumber Products
Businesses that don't have a long track record of success are generally difficult to sell. I personally advice business buyers to verify the existence of proof of sustained profitability before seriously considering to buy a business. A relatively new business hasn't have the to prove that its business model is viable in the long term and as a result such a business is risky to buy.
I also receive a number of phone calls from new franchisees who are struggling financially and who see selling as a possible exit from their financial nightmare. Unfortunately most small business buyers are looking for a business as a job replacement not as a turn-around investment. Therefore selling is definitively not a common way out financial distress.
As a business broker in Toronto, I am very selective when choosing which businesses I want to take to market. In general a profitable business with growth prospects and a motivated seller with a legitimate reason for selling does sell in a reasonable time and at a fair price.
Below are some businesses I have listed recently and that I consider good opportunities to make a decent living for potential buyers.
Air Conditioning and Refrigeration Maintenance in Kitchener Ontario
Distribution of Synthetic Turf Business for sale in Mississauga
Ontario Health Care Private Career College Business for Sale
Manufacturing Lumber Products
Good post. Anyone who is looking to sell a business with a very short track record or a history of poor financial performance, is going to do so at a price near or below the cost of the assets.
ReplyDeleteThe business needs to prove itself as a going concern before it can command value over and above the money that has been invested in it.
In certain cases the business might be worth less than the value of the assets because the brand name is so weakened through mismanagement that it would be easier to start from scratch.
It's important for sellers to understand these issues so that their expectation of the sale price is realistic.
Scott
www.businessplangenius.com
Buying or setting up a new business can be quite tricky.
ReplyDeleteA start up company needs a good idea and a good business plan. This helps securing finance for the business venture as well as proving a guide map for the company.
Business Plan Writers Ontario