Stay Bonuses Add Value When Selling A Business
We’re selling a business in which a management team member holds a minority equity stake. This critical employee stands to get a small windfall in the sale. On top of that, the seller was telling us she meant to give this employee a nice financial gift as a thank you afterwards. That’s where we pumped […]
Capital Gains Exemption & Business Valuations Under Bill C208: What You Need to Know
Changes to the Income Tax Act have brought significant shifts in the taxation of small businesses, especially when it comes to intergenerational transfers. The new Bill C208 provides tax relief to small business owners seeking to transfer shares in the business to their family members. Before the passage of the bill, share transfers from business […]
Maximizing Your Gains: Why an Independent Business Valuation is Crucial for Capital Gains Tax
Selling your business can be a profitable venture, but it also comes with the responsibility of capital gains tax (CGT). Calculating the correct amount of CGT can be complicated, especially when there are various factors affecting a company’s value. This is where an independent business valuation comes in- to keep shareholders tax compliant and avoid […]
Structuring an M&A Deal
Orchestrating an M&A deal involves several key steps, including valuation, documentation, buyer identification, negotiation, and due diligence. Here is a general outline of how to structure an M&A deal: It’s important to note that M&A transactions can be complex and involve many legal, financial, and operational considerations. As a result, it is common for both […]
Planning to Sell? Set Your Business Up for Success
Over 75% of small and medium-sized business owners in Canada are looking to sell their business over the next decade according to new research from the Canadian Federation of Independent Business (CFIB). This equates to transfers of over $2 trillion worth of corporate assets in the coming years. Business owners stated retirement (75%), burnout (22%), […]
When Should You Have Your Business Valuated
As a business owner, the value of your company is more than just a number. Yet, it is essential to understand that number to make informed decisions for the future of your business. Business valuations help measure the value of a company using financial principles. It is useful in determining the fair market price for […]
Avoiding Costly M&A Delays, Valuation Adjustments, and Deal Failure
No matter how motivated the buyer and seller are, selling a business is always a challenge. There’s a lot that can go wrong, and deals can fall through at any time. Delays are one of the biggest problems contributing to deal failure. The longer the process drags on, the more likely it is that a) […]
The Interpersonal Side of Negotiations
The interpersonal side of a negotiation refers to the way in which the individuals involved in the negotiation interact with each other. This can include their body language, tone of voice, and how they communicate with each other. It is important for the parties involved in a negotiation to be aware of and consider the […]
Why 75% of Deals Don’t Close
Tom West is considered by many to be the founder of modern-day business brokerage. A few years ago, he calculated what percent of businesses on the market actually sell. For most small businesses, those with sales of $10 million or less, he figured fewer than 25% actually transition to a new owner. A 75% failure […]
How M&A Will Respond to the Next Recession
The M&A world isn’t quite sure what to expect in the next recession. Private equity players weren’t nearly as dominant through the last market downturns. But today those firms have $1.8 trillion in uncommitted capital they need to put to work. With money to spend, and a timeline to do it, private equity may help keep valuations […]
