As we begin the process of selling your business, there are many things you will need to do:

• Maintain normal working hours.
• Make sure your financial records are an accurate reflection of revenues, business expenses and assets/liability levels.
• Conduct business as usual while maintaining normal inventory levels.
• Keep the business clean and in good repair.
• Remove equipment or furniture that is not part of the sale.
• Provide us with required information in a timely manner.
• Be as accommodating as possible in setting appointments to meet with buyers.

Portage M&A provides its clients with a thorough business evaluation called our Most Probable Selling Price analysis. On the open market, an evaluation of this scope and detail would cost many thousands of dollars, we charge a small fee for this evaluation.

Your intermediary will explain the importance and value of this document as well as the detailed analysis that goes into its development.

Portage M&A has the expertise and reach to be able to market to the right prospects locally, nationally and internationally. Your business will receive broad exposure across our network, augmented by appropriate offline and online marketing initiatives to reach your prospects.

Our proprietary buyer-matching systems also allow us to search our internal database of thousands of registered buyers to identify prospective buyers whose profiles match your business.

An astute buyer will typically start with an offer that is substantially below your asking price. This initial offer is normally used as the first step in the negotiation process to “test the waters”. All offers will contain contingencies, including a review of the books and records, obtaining a satisfactory lease, and agreement on training and transition periods. Other contingencies specific to your business may also be included. Contingencies are normal as they provide the buyer with the opportunity to verify the information presented in the marketing materials. They also provide some negotiating room for the purchaser as the process moves forward.

There are many factors affecting the length of time it takes to sell a business including: asking price, the buyer’s ability to secure financing for the purchase of the business, the business’ location, local economic conditions, the nature of the business etc. Consequently, there are wide variations in the amount of time required to sell a business, however, a selling period of six to twelve months would be the typical.

No. We usually ask for a signed personal financial statement from the buyer and try to get a sense of the validity of what is presented by asking questions, but we do not initially verify that the information submitted is correct. If negotiations become serious and there is any question of financial capability, we are authorized to run a credit check and will do so if appropriate. If you are financing a substantial part of the purchase price, you should verify income and asset and liability information as carefully as a bank would.

In Canada, because financing for small businesses is quite difficult to acquire from banks and traditional lending institutions, seller financing is a part of most small business acquisitions. Seller financing also makes sense for both the seller and the buyer for a couple of reasons. First if the seller is willing to provide financing, it shows the buyer that the seller believes in both the earning power of the business and the skills of the purchaser to make sufficient return on investment to cover the financing. It also works for the seller, because businesses that include financing typically sell for more than businesses without seller financing. In some cases, the ongoing payments and interest on the loan also suit the interests of the seller.

When a buyer buys a business, he/she does so based on the business being able to generate sufficient cash flow to pay your loan and provide him/her with an income to meet their needs. However, a seller will typically ask for a personal guarantee on the financing provided.

There are no firm rules regarding training, and many businesses have more complex learning curves than others. Your intermediary will negotiate the best arrangements for you depending on the type of business you are selling and your personal circumstances. Remember, if you are financing any portion of the purchase price you still have a financial investment in the business, thus, proper training of the buyer is in your best interest.

Although it sounds harsh, our considerable experience has proven that it is best not to tell your employees about the sale until immediately before or immediately after the sale. Of course, if there is an employee whose expertise will be needed after the sale, you should introduce the buyer to this employee shortly before closing. Your intermediary can assist you in determining the timing for notifying employees of the sale.

Portage M&A Advisory’s commissions are competitive in the market place. The commission is performance based and therefore contingent upon the successful sale of the business and Portage M&A generally is able to secure a higher selling price than sale by owner or through lesser channels, so the result is that using Portage M&A does not cost the seller but increases the net proceeds to the seller. You can discuss specific terms and conditions with your Portage M&A business intermediary.