Buying and Selling in Business Vancouver

If you’re looking to buy, or sell a business in Vancouver, we have all you need to find exactly what you’re looking for. Here are some tips, no matter what side of the market you’re in.

Buying

Regardless of what you’re doing, first-time buyer, or adding to your existing enterprise, there are many things to consider before paying for a business. Average cost of businesses in that particular area is one of them; but also on the list should be the return on your investment, cost of payroll, inventory, maintenance and bills (overhead), what you may need to pay out of your own pocket, and how this type of business could affect your bottom line in the future all should be considered.

You don’t want to buy into a specific type of business, without first knowing what a business like that sells for. If someone is selling a gas station for $400,000, you will need to know if that’s a fair market price (FMP) or not. The location has a lot to do with it as well. Even if the price for the business is above FMP, things like location, and how many other options are in the area could make the increase feasible. Now, if the opposite is true, a bad location, paying FMP may not be a good idea. We can help you decide which is a good decision, and what to stay away from.

Plan on spending between 30%-40% out of pocket on this new venture. If that isn’t part of your budget, we can figure out how to build that in for you. Sometimes, businesses sell because the current owner can’t keep up with the maintenance costs. This doesn’t always mean it is a bad business or doesn’t produce enough profit. This just means you may need to adjust your offer, or budget to create the capital for this particular expense.

We can answer all of these questions and can assess what is needed to get your new business up-and-running. 

Selling

It is suggested that you begin planning to sell your business at least 2 years away from when you want it sold. That way, everything that needs to go into building the equity in your business can be executed. A lot of detail goes into selling a business too, not just buying one.

Maximization of the return on your initial investment is one of the top priorities for us, and should be for you. There may be some upgrades you’ll need to be sure that can happen, and we can help you with that planning. Don’t wait until you’re ready to accept an offer to let us know, we can help with every aspect of listing a business.

Your books, and a proper representation of them researching the market, and what is the best way to sell are all important aspects to consider. Here in Vancouver commercial real estate is a booming business, find out what is selling, and their peak value, and then we can help you see what exactly your business can sell for.

Conclusion

There is a lot that goes into buying or selling a business, and help is usually needed. For you to be able to get as much out of your transaction, we can assist in every way necessary, so that you don’t leave any money on the table.