Any business has such a feature – to change hands. Today the business owners and potential buyers try to come up with proposals on the open market, as well as use the services of business consultants
Who are the buyers of business?
I can distinguish three groups. The first – this is representatives of any industry who are thinking about expanding the production and integration into the region or on securing the achieved market positions. So, some of our longstanding customers bought the production in an entirely different region, but in their industry.
The second – this is just investors, venture capital, investment companies, which buy the company working on promising direction, put back his manager, and business that may have previously worked poorly begins to grow and generate income. These investors are not interested in the manufacturing process or a particular industry; they are interested in the profitability of direction.
The third group – are those who buy a new business simply because they have money. These people are usually good managers who have experienced all possible crises, and their desire to deploy a new business is quite understandable and explainable. We usually always know what buyers are going to do in production – the seller, as a rule, should not be interested in it – he just wants to get money.
What should be the main stages of selling business?
The procedure for changing the owner is quite simple and consists only in changing the founders of the company (through the sale of controlling shares or share capital in general). The main problem is how to prepare the company for sale, find a buyer and estimate the cost of business. Many people can hardly imagine how to do all it, and, for example, provide a broad advertising, openly seeking a buyer.
This is a big mistake – staff, partners of the company begin to think that the firm has problems, although in fact it may be completely different – they break contracts, leave the firm that negatively affects its value. The first thing to do when selling business – is to bring it into order, like any other thing. It is necessary to make cosmetic repairs of fixed assets, such as office, if you have at least minimal opportunities – the appearance of physical assets gives the impression to the buyer. It is also necessary to put in order all the accounting records and to try as much as possible to pay all budget debts. The new owners can deal with debts of salary, but debts to budgets – are a serious drawback. It is also necessary, if resources permit, to obtain an audit opinion. This is a very powerful bargaining chip, even if the conclusion is ambiguous, but it clearly reflects the pros and cons of the enterprise. The same applies to independent evaluation.
Business has always been a dream for many people. But nowadays business has become not only a kind of activities and occupation – it has turned into goods. It is often today when someone buys and sells businesses just to earn money on it. Whereas another part of businessmen sells their businesses because of some troubles or inability to conduct it any more. In any case when selling a business it is better to address to experts who deal with it. And here business for sale site would be of much help because there one can learn much details related with this process. Those who live in Canada are welcomed to go to toronto business for sale or vancouver business for sale experts.
And remember that before dealing with any issue it is smart to learn some info about it. And today it is quite easy to do as web technologies give a nice opportunity to find anything you require.