An old Chinese proverb says, “He who speaks first, loses.” Consequently, I always advise my clients to simply answer any questions put to them by the purchaser during negotiations, without offering any additional information or overtures. I tell them that when the purchaser is allowed to speak first, we can assess the proposals as they…
When integrity is lost, it’s almost impossible to get it back. Sellers who have misrepresented their company are dishonest. They are no longer trusted. Any potential purchaser will lose confidence in the seller and walk away from the deal, or try to buy it at a very low price. The following is an excerpt from Doug’s book…
A professional practice is a business, just like any other, and partnerships are prone to fail. The cost of setting up the correct structure for operating and ultimately terminating the partnership is relatively inexpensive compared with the cost of unraveling a relationship that no longer meets the original needs, not to mention the emotional cost.…
It was time for Ned to retire from the family business. But Ned didn’t have an exit strategy, so he came to us. He and his wife, Joanne, had three children – two sons and a daughter. All three siblings were married. All three worked in the business with Mom and Dad. It was a profitable business.…
For most people, their home is their largest asset and 70% of Canadians own a home. Most of these homeowners rented at some point, prior to making the decision to buy. This decision was driven by the theory that homeownership is a good, long-term investment, even if it is more expensive than renting. Buying provides…
Many of our clients have exposure to foreign currencies (FX) within their yearly business cycle, but do not utilize the array of foreign exchange tools that are available to manage the risk of fluctuating currency values and the profits associated with those risks. Net Exporters hope for a weak Canadian Dollar (like we are now…
An owner, Jackson, approached us to sell his small machine shop. It was absolutely pristine, located in a brand new 10,000-square-foot building, situated in a farmer’s green ten-acre field. It also featured a paved driveway and parking lot and was well landscaped. We recommended that a phase one Environmental Impact Study be done prior to…
Confidentiality is one of the most important things for a business owner to consider when it’s time to sell. In fact, as our experience has shown us time and time again, sellers who maintain a very high level of confidentiality are much more likely to get a favourable amount for their company. If you have been…
Owners can’t really see their business objectively. Let’s think of your business as being housed in a giant Coke bottle, which in days of olde was a sculpted green glass bottle. Remember how light coming into these bottles was distorted? First it had a tinge of green and second, everything was out of focus. All…
How to Fill Those Sixty Hours? Selling the business isn’t an end. It’s a beginning. But the beginning of what? If business owners fail to see what’s out there for them if they sell, they will prefer to stay in that protective trench of their business. It’s important for such owners to have a clear…