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You\u2019ve worked hard to build a business and a brand that you can be proud of, and now it\u2019s time to reap the benefits. But is your business ready to sell? Selling a business in Canada requires careful planning and a clear understanding of its market value. Smart sellers come to the table knowing their business\u2019 competitive position, asking price, and perfect buyers\u2014before they sit down to negotiate.<\/p>\n\n\n\n
In this ultimate guide, we\u2019ll cover everything you need to know about how to sell your business, well before the time comes.<\/p>\n\n\n\n
To find out if your business is ready to sell, you need to think like a buyer. These days, buyers are looking for turn-key investments with proven business systems that they can learn and replicate. That\u2019s why franchises are so popular: they come with a well-defined business system, marketing support, and staff training programs. In fact, one new franchise opens in Canada every two hours<\/a>. So, what can you do to make your business equally as attractive for buyers?<\/p>\n\n\n\n Here are a few tips to make your business more saleable:<\/p>\n\n\n\n Find out if your business is ready to sell by asking yourself these five questions<\/a><\/p>\n\n\n\n All too often, an unexpected event can force business owners to sell. Be ready with a solid exit strategy so you can make the most of your years of blood, sweat, and tears if\u2014and when\u2014the time to sell your business comes.<\/p>\n\n\n\n Preparing to sell your company in advance is critical to increasing your business\u2019s value and maximizing your sale price. It gives you time to organize your financial records and tax returns, build a strong customer base, and improve employee retention. But don\u2019t take our word for it.<\/p>\n\n\n\n In this episode of Canadian Small Business Tips<\/a>, entrepreneur Sid Van der Meer shares the experience of putting his business for sale before his retirement.<\/p>\n\n\n\n Learn how to plan a successful exit from your business\u2014sooner rather than later<\/a><\/p>\n\n\n\n There are three main ways that small business sales in Canada are structured: the sale of shares, the sale of assets, and hybrid sale structures. Each one comes with pros and cons for both buyers and sellers. But navigating them isn\u2019t always an entrepreneur\u2019s expertise.<\/p>\n\n\n\n We\u2019ve put together a simple explanation of each sale structure, along with questions you can ask your professional legal and accounting advisors to make the most of your investment.<\/p>\n\n\n\n See how to structure a purchase or sale of a business in Canada<\/a><\/p>\n\n\n\n It\u2019s tempting to tell staff about selling your business, but if you spill the news too soon, you risk losing valuable team members who might actually be your business\u2019s greatest asset. It\u2019s best to wait until the deal is done.<\/p>\n\n\n\n Once you\u2019ve signed on the dotted line, there are a few ways you can lessen the blow for your team, based on best practices for change communications, including:<\/p>\n\n\n\n Here\u2019s how to keep your staff in the know.<\/a><\/p>\n\n\n\n Creating a compelling ad to sell your business doesn\u2019t have to be hard. Start by taking stock of everything your business can offer a potential buyer, then summarize your list using language that appeals to their desires. You should also weave in keywords to help with SEO when selling your business.<\/p>\n\n\n\n We\u2019ve put together some tips to make sure the ad you write to sell your business is simple, yet effective and meaningful:<\/p>\n\n\n\n Learn how to attract buyers with compelling advertising copy.<\/a><\/p>\n\n\n\n Selling a business in Canada is not like selling a car or a house\u2014you can\u2019t simply walk away once you\u2019ve signed on the dotted line. You want your business to thrive under the new ownership and the current employees to be taken care of. That\u2019s why you need to ensure the potential buyer has what it takes to become the new business owner. <\/p>\n\n\n\n Here are three questions you can ask to find out if the buyer is a suitable successor:<\/p>\n\n\n\n Learn how to prequalify potential buyers and find your successor<\/a>.<\/p>\n\n\n\n It\u2019s rare for buyers to show up with cash-in-hand to purchase a business, since it can require significant financial investment. Typically, business sales require some form of financing, often from multiple parties. They can include the buyer, bank loans, developmental bank loans\u2014and even you, the seller. Of course, there are benefits and drawbacks to vendor financing.<\/p>\n\n\n\n Here are some of the pros of vendor financing:<\/p>\n\n\n\n Conversely, here are some of the cons of vendor financing:<\/p>\n\n\n\n2. How to Plan a Successful Exit From Your Business<\/h4>\n\n\n\n
3. How to Structure a Purchase or Sale of a Business in Canada<\/h4>\n\n\n\n
4. What to Tell Your Employees About Your Business Sale<\/h4>\n\n\n\n
5. How to Create a Compelling Business Listing<\/h4>\n\n\n\n
6. How to Vet a Potential Buyer for Your Business<\/h4>\n\n\n\n
7. Should You Provide Financing to a Buyer of Your Business?<\/h4>\n\n\n\n