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Sell your Business

Reasons to sell

If you have come to the decision to sell your business the obvious reason is that you will better off without it, the  reason could be many: such as retirement, need of cash or simply because you have found a better investment for your money. The main reason you are selling your business will also be very important to anybody that may be interested in buying it. As a matter of fact, the most asked questions we get from prospective buyers are "if this business profitable?" is " Why are they selling?". If your reason is not a genuine one, most buyers will walk away; in selling a business there is not such thing as a "deal", the buyer will see it as a deal only if he will be able to make it grow.

 

Type of Business

You may own a corporation (a company with shares) or a proprietorship,  to sell either one is about the same process but not totally. If you are selling a non-incorporated company you will sell the asset and the good will but in the case of a corporation you could sell the buyer your shares. This will make the transaction easier if there is more than one shareholder.
In the case of proprietorship if you have a partner you will have to get his approval because there is a good change that the partners have an equal say on any matter that may effect the business.

 

Selling the Shares or a Limited Company

For the seller there are some advantages in selling a business as a corporations:, he may qualify for the lifetime capital tax exemption hence the first $ 750,000 may be taxed at a very low rate. Depending on how the company is structured or what it owns, there may also be advantages for the buyer  Every corporation or limited company is a legal entity as such the buyer will acquire all the receivable and the payables of the company (debts) unless stipulated differently and not have any personal liability.

 

Selling a non-incorporated Company

In this case you would sell your assets, and yes the lease that you entered when you started the business could be an asset as it may be the "good will" of the business.

Meeting with us will be very important to establish the structure of the sale and reduce any misunderstanding with the potential buyer. We will discuss with you your financial statements, your real estate value or the lease, the possible value of the equipments and of the good will and although we can give you a very good idea of what you can expect  in terms of the sale therefore save you a lot of money, it always recommended that you also consult with a Certified Accountant and a Commercial Lawyer.

 

Yes I am interested in knowing more, please contact me

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