Do you have any questions about buying or selling a business? Review Pacific M&A and Business Brokers Ltd.’s most frequently asked questions. Select the (?) icon to expose the answer to the questions. If you have any questions that are not answered below, please send us an e-mail.
Yes, this is one of the most critical components to successfully selling your business. Not only does a properly prepared and objective valuation ensure you go to market at a price that will interest the market, but it will also ensure you have all your financial and other information in order pending a sale.
On average the whole process may take nine months. It may be quicker with businesses priced aggressively in high demand industry sectors, or it may take longer if your business has a limited pool of buyers or is located in a geographically undesirable location.
No, there is no comparison. A business sale contains many complexities that need to be managed and understood. Engaging a qualified Broker who understands the financial, legal, operational, and numerous other dynamics within a business is critical to a successful sale.
Ultimately, you get what you pay for, or as is the case with many Brokers, you pay nothing, as many don’t achieve the ultimate goal of selling your business. It is key that you work with a firm who have qualified Brokers in place with detailed processes to manage your transaction from start to finish.
There is no such thing as a ‘normal’ transaction multiple. If you wish to learn what you may yield from a business sale you simply have to have an appropriate valuation performed.
Pacific M&A and Business Brokers Ltd. has sold businesses in over 150 different industries. Manufacturing, retail, health care, distribution, construction, and service are just a few of the industries we have the most experience in.
If your business is a profitable going concern, then yes.
No, Pacific M&A and Business Brokers Ltd. would recommend you work with your trusted accountant or lawyer, or our team could recommend many exceptional advisors if you wish.
Yes, Pacific M&A and Business Brokers Ltd. works on transactions globally.
Even if you are not ready to sell at this point in time, Pacific M&A and Business Brokers Ltd. would recommend you periodically have a business valuation performed, so you understand the current value. You can better plan accordingly for your exit when you are ready and on your terms.
No, that is not necessary. Pacific M&A and Business Brokers Ltd. prefers to work with five years of historical financial statements as the base to build the business valuation along with interim statements for the current fiscal year.
Firstly, your business is marketed confidentially; in that Pacific do not release the name of the company, location or even specific industry if it is quite specialized. We start by posting the business for sale on 15 business transactional websites and we will send out a communication to over 12,000 contacts ranging from private individuals, Private Equity Groups, Law Firms, Accounting Firms, and other business owners.
This becomes one of the terms of a deal, and will depend on many factors including your own personal goals, the buyer and their needs, the complexity of the business plus many other factors.
Yes, Pacific M&A and Business Brokers Ltd. can. Dual agency is often one of the critical factors to ensuring a deal is managed correctly from start to finish. It should be noted that although dual agency will be restricted on the majority of real estate transactions within B.C. starting in 2018, unless there is a real estate component to the business transaction then Pacific M&A and Business Brokers Ltd. does not perform any Real Estate services.
A CBI is a designation awarded by the International Business Broker Association to Business Brokers who have been practicing for a minimum of three years, have closed a minimum of three transactions in that time and have completed a minimum of 68 hours of course material followed by successfully passing the CBI exam. All Pacific Brokers are required to carry the CBI designation.
No, there are many brokers operating without any such designation, however, all the brokers at Pacific are required to carry this designation. Business transactions are often very complex, and as a vendor it is critical you align yourself with a professional with the experience and qualifications to effectively meet your goals.
Our Firm manages all buyer interest through a process of requiring Non-Interference Non-Disclosure Agreements being executed along with a statement of financial capacity to demonstrate a Buyer has the required resources to complete a deal. Once pre-qualified any further materials are provided through a secure Data room on a view only basis to ensure any sensitive materials are not arriving in the wrong hands.
Over the years, Pacific M&A and Business Brokers Ltd. has closed transactions as small as $30,000 along with transactions in the tens of millions of dollars.