Buying and Selling Your Business

Looking to buy a business in Vancouver, BC? Have one here, and looking to sell? Here are some pointers to what the best way may be to go about either one.

Buying

When looking to go into business for yourself, or adding to your portfolio, the list of things to consider needs to look overwhelming. But we are here to help with those areas to focus your attention. Location, the expectation of Return (ROI), overhead, out-of-pocket expenses, cost of expenditure, managing your investment in regards to your net worth, and what business types are more lucrative should be noted.

When buying a business, the average cost of that business should be one of the first things to come to mind. We make that number one, because after we know what the current owner is asking, then we can assess the value of that purchase. The average cost of a gas station in 2015 was around $320,000. If this is the industry you’re looking to get into, you should assess the location, land value, traffic patterns, and any upgrades you may need to do. 

A bit of good advice when looking into buying a business is also to make sure you plan on spending about 30% of your expenses out-of-pocket initially. After that initial time, you’ll be looking to keep a certain percentage of profit free to pay those types of expenses, so you’re limiting you personal risk. 

Vancouver, BC is growing, quickly. The demand for commercial real estate in Vancouver is on the rise, and the supply is dwindling. If we are on your radar, we can make sure your investment is done right, and every aspect that needs attention gets handled.

Selling

Selling your business should be done with as much attention to detail as buying one. Planning is key. It may not always be possible, but if you can start planning to sell your business at least 2 years out, you’ll end up maximizing your return. Have an accurate representation of your books. Lower than expected results in the industry don’t always mean it’s bad business for someone to buy. If you own the land your business is on, know the current value. Here in Vancouver, land prices have been on the rise and will affect your selling price.

Research the market. Vancouver commercial real estate is a booming business, see what businesses are selling, and what they’re getting. Talk to us about seller financing. It may increase your final return and may be worth the time it takes. 

Land values and commercial real estate is on an upswing. As is commercial and population growth. The business market is booming here for Vancouver Commercial Real Estate, so don’t get left behind. If you’re looking to buy or sell a business here, let us help you with those decisions.