Sunbelt

The decision to buy or sell a business is among the most important you'll ever make. Friends and family are fond of giving advice. They have your best interests at heart, but do they really understand the issues related to buying or selling a small business?

Think about a good dinner conversation. Now think about it taking place around a business table. Your host is a savvy business broker who has helped hundreds of individuals buy or sell a business. He'll be inviting other guests who can add professional perspective to the conversation.

Each will be sharing their knowledge and experience, so that you're better equipped to buy or sell a business if and when you're ready.

The president says, "I'm the business broker who'll be joining you each week and I enjoy helping people to achieve their goals. Let me tell you something about what we do:

Business brokers act as coaches, guiding and educating both buyers and sellers through the challenging steps of buying and selling a business. They provide expertise. It's the broker's job to understand and match needs, managing the transaction and controlling the process, respecting timelines and channeling the flow information required to bring the deal to a conclusion that works for both.

We're part of a team of advisers you'll benefit from knowing about. Lawyers, accountants, bookkeepers, bankers, wealth advisers, marketing specialists, insurance professionals, and business coaches, each have valuable expertise and services to inform the decisions you will be asked to make along the way.

At the Broker's Table will explain the processes, the sequencing of steps and responsibilities in buying or selling a business, so you'll understand who should be doing what and when. You'll be able to pick up proven tips whether you're buying or selling. The goal is a fair deal, with price, terms, and conditions that work for both sides, protecting your best interests in the process.

A successful outcome
A good broker is focused on finding the right business for the buyer. Selling a business is a complex and challenging process with serious financial, legal, tax and lifestyle implications. Starting the transaction with a buyer that has the necessary experience, skills, ethics, financial resources, risk tolerance and passion is more likely to lead both parties to a successful outcome.

Likewise, die seller's expectations need to be in line with the market reality. The business broker starts by formally assessing the value of the business to determine the most probable selling price (MPSP). This represents a reasonable price, factoring the true earnings, the state of the business, the risks, and what the market is willing to pay. The seller can then negotiate on an informed base.

In Ontario, business brokers often represent the interests of both seller and buyer. The broker commits to confidentiality, loyalty and full disclosure to both parties simultaneously. It's the broker's job to be fair, to get the right questions asked and answered and to help both parties achieve their goals.

That's what you can expect from this series of articles. You'll get to see the details on both sides of the business coin.

You will also get to hear from these eminent folks around the table.

The professional perspective of other business owners can be invaluable, especially when it conies in the form of peer mentoring.

Thats why I want to start this series by talking to you about the locally available master mind group, The Inner Circle.