BUYING A BUSINESS

Buying a business can be a complicated procedure, from finding the right one to working out all the details required for a smooth transfer of ownership.

 

BENEFITS OF BUYING A BUSINESS WITH BIZBUY

We can help you identify great opportunities as well as ensure that you are paying a fair market price as well. We will take care of the entire buying process including all the financial and legal running around so you don’t have to.

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Market Price Analysis

Are you paying a reasonable price? Get an idea of how the market would price this business.

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Industry and General Sold Comps

Get data of other businesses in the same or similar industry and what they have sold for.

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For Sale Comps of other businesses on the market

See pricing ratios of same or similar industry businesses for sale.

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Creating Due Diligence

Get a list of due diligence questions to better create a list of what you should be asking.

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Seller’s Disclosure Request

Benefit from written confirmation as to what the Seller may or may not know about present and future concerns.

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Business Financing

Pre-Qualifying Buyers for SBL loans of up to $350K Unsecured.

YOUR DREAMS can become a REALITY

If you’ve been searching the Internet looking for a business to purchase in Canada that’s right for you—and you’re deciding whether to even look at a business based off of a single ad—you may be missing out on prime business opportunities. Each business we sell has:

  • Clean financials: Good books, including tax returns
  • Clear intentions: Written contracts authorizing us to sell the business
  • Ready-to-sell pricing: Realistic prices based on actual business value, not emotions or best guesses

 

Try Our Proven buying Process

Buying a business can be one of the biggest decisions you ever make. Choose the right business and you’re setting yourself up for the freedom, flexibility and feelings of pride that owning a business brings. However, if you choose the wrong business or a business that isn’t a good fit for you, you could be facing years of frustration, heartache and debt.

The buying process can be confusing, especially if you’ve never purchased a business before. At BizBuy.ca, we pride ourselves on taking a straightforward, 5-step process to buy a business:

Step 01. 

INITIAL FREE CONSULTATION

During an initial consultation we get to learn more about you and your business buying criteria. This initial consultation is a valuable part of the purchase process, as it can expedite our work in finding the right business fit for you.

Step 02. 

RESEARCH BUSINESSES FOR SALE

After an initial consultation, our team will enter you in our database and notify you if there is a business for sale that fits your criteria. In the meantime, you can search www.aldrin.ca to view all of our current businesses for sale.

Step 03. 

GET OPPORTUNITIES IN FRONT OF YOU

After working with you to secure the proper nondisclosure or confidentiality agreements to protect our sellers, we present you with business opportunities that match your needs and preferences.

Step 04. 

GET YOU THE INFO YOU NEED TO DECIDE

When you find a business that’s a good fit we’ll ensure you have the info you need to make an informed decision. We’ll introduce you to the business, let you review the financials and give you the time to perform your own due diligence prior to making a contingent offer and obtaining financing.

Step 05. 

GET YOU THE BUSINESS YOU WANT

Once the seller has agreed to the contingencies and conditions in your offer and you’ve obtained financing, it’s time to close the deal. We stay involved at every step of the process—through closing—to help streamline the transaction and address any issues or concerns that arise.

Featured Businesses

19 YEAR OLD PROFITABLE CATERING SERVICE IN WOODBRIDGE

Popular Established Catering Service in Woodbridge servicing major reoccurring clients since 2001. Annual Gross Revenue of $4.3M in 2019.

Location: Woodbridge

Industry: Catering

Gross Revenue: $4.3M

AEROSPACE PARTS ENGINEERING AND MANUFACTURING IN VAUGHAN

Industry leader in Aerospace Parts Engineering and Manufacturing through our world-class engineering, design, analysis and fabrication teams.

Location: Vaughan

Industry: Aerospace

Gross Revenue: $5.5M

60 YEAR OLD CHEESE MANUFACTURING BUSINESS IN ONTARIO

60 year old Cheese Manufacturing business creating over 200 exquisite cheese products that can be found at grocery stores and deli counters across the country.

Location: Ontario

Industry: Cheese Manufacturing

Gross Revenue: $36M

LICENSED LIMESTONE QUARRY WITH MULTIPLE LOCATIONS IN SOUTH BRUCE PENINSULA

The Quarry consists of approximately 25 acres of Quarrying land and 399 acres of Limestone Quarry.

Location: South Bruce Penisula

Industry: Limestone

Gross Revenue: $200K

Ready to Buy?

Are you ready to buy a business or learn more about the process of buying a business?

Get In Touch

How do you value a business?

We take multiple important elements into account when determining the price of a business. We fully review historical financials, cash flow, asset and equipment values, condition of the premises and lease terms, location of the business, competitors and the economy before finalizing the sell price. We also take into consideration the recent transactions of similar companies – both ones we have represented and transactions outside of our brokerage through paid data sources.

Why buy a business when I can start my own?

Many small businesses fail within the first year or two after starting up. By purchasing a business that is already up and running, you are eliminating many of the risks associated with a failing business. An established business has a proven track record, a proven/vetted business model, a customer base, trained and experienced employees, and most importantly, positive cash flow for the new owner. The risk is lower, and often times the growth is accelerated with these fundamentals already in place and with a new owner coming in with fresh ideas and new energy. Plus you’ll start off in month 1 with a positive cash flow and able to draw an income, whereas most new businesses take a while to build up enough business to generate a substantial income for the owner.

What portion of the sale will the seller refinance?

This varies with each seller. Some are willing to finance a portion but most sellers are reluctant to finance much of the sale price. The terms or length of the financing period also vary.

This said, most transactions below $5.0mm will generally apply for an SBL-backed loan to assist in the purchase of a business. This is a loan that is government backed and offered at competitive rates. 

What is the difference between Profit (Net Income), Cash Flow and Discretionary Earnings?

This can be tricky because we’ve learned over the years that everyone’s definition of each of these terms can vary just a bit.  Generally speaking, the profit of a business is the amount of money that is left over after all expenses are accounted for. The Cash Flow is the total amount of money being transferred into and out of a business.  Cash flow considers not just a businesses profit, but also typically factors in other owners benefits, interest payments or interest received, depreciation, amortization, etc.  It shows how much cash the business is producing which could be different than it’s profit from normal operations.  Discretionary Earnings are owner benefits, EBITDA and all expenses that are not applicable to the new owner.  For instance, the owner may currently have a more expensive office than you plan to have, or may be leasing a vehicle that you do not plan to use, or other expenses that are not applicable to you should you buy the business.  Again, this definition can vary from one person to another.