Frequently Asked Questions
All you need to know about buying and selling a business
For Sellers
What information do I need to provide?
How do you determine the value of my business?
In order to determine the value of your business, a member of our team will complete a business valuation. The process involves determining the fair market value of your business, and is based largely upon its financial performance, assets, liabilities, growth prospects, and market conditions.
Learn more about Business Valuations
What confidentiality measures do you have in place?
At Coastal Business Advisors, we prioritize confidentiality when listing a business for sale by implementing various measures; including requiring potential buyers to sign non-disclosure agreements (NDAs), creating anonymous listings, limiting disclosure of sensitive information, screening buyers for financial qualification and genuine interest, utilizing secure communication channels, exercising discretion in marketing and advertising, educating sellers about confidentiality, and including confidentiality clauses in contracts.
These measures help protect the identity and sensitive information of the business, reducing the risk of information leaks and safeguarding the interests of both the seller and the business itself throughout the sale process.
What are the advantages to using a business broker?
- Using a business broker offers several advantages for both buyers and sellers in the sale or purchase of a business.
- Expertise in valuation, marketing, and negotiation, saving time and resources for sellers while helping buyers find suitable opportunities.
- Access to a network of potential buyers or businesses for sale, facilitating transactions and ensuring confidentiality throughout the process.
- Guidance and support, helping navigate complex legal and financial aspects while maximizing value for their clients.
- Streamlines the transaction process, reduces risks, and increases the likelihood of a successful outcome for all parties involved.
How do you qualify potential buyers?
- Coastal Business Advisors qualifies potential buyers through a multi-faceted approach that includes financial verification, pre-qualification questionnaires, buyer interviews, evaluation of business experience, solicitation of professional references, implementation of non-disclosure agreements (NDAs), verification of proof of financing, and assessment of commitment and timing.
- By employing these methods, we can ensure that potential buyers are financially capable, have relevant experience, and are genuinely interested in purchasing the business.
- This screening process helps streamline the sales process, protects the confidentiality of the business, and increases the likelihood of a successful transaction for both buyers and sellers.
For Buyers
What is the process for acquiring a business?
The business acquisition process involves several key steps:
- Identifying suitable opportunities that align with your goals
- Conducting thorough due diligence to assess the business's financial health and potential risks
- Determining a fair valuation through careful analysis
- Negotiating terms with the seller, including purchase price and financing arrangements
- Securing financing through various sources
- Drafting and reviewing legal documentation
- Finalizing the acquisition through a smooth closing process
- Transitioning the business smoothly into your operations
- Evaluating post-acquisition performance
- Focusing on long-term growth and expansion opportunities.
Throughout the process, collaboration with legal, financial, and industry experts is essential to navigate complexities, mitigate risks, and achieve a successful outcome.
What are the advantages to buying an existing business?
- Instant access to an established brand, customer base, and revenue stream, as well as a proven business model and infrastructure.
- Buyers can mitigate risk and accelerate growth compared to starting a new venture (staff and management are in place, along with tangible assets and marketing channels).
- Easier access to financing given a track record of financial performance and operational success, compared to the difficulties most startups face with access to capital.
- Potential for immediate cash flow, providing a quicker return on investment.
- Potential for growth and expansion by leveraging existing resources, customer base and market presence.
Are there any financing options available?
Entrepreneurs and business buyers have several financing options available to fund the purchase of a business in Canada, including:
- Traditional bank loans
- Government grants and loans
- Asset-based financing
- Seller/Vendor financing
- Private equity and venture capital investment
- Angel investors and/or crowdfunding
- Loans from family and friends
And/or - Equipment financing.
Each option has its own eligibility criteria, terms, and benefits, allowing buyers to choose the financing solution that best suits their needs and circumstances.
Our team can work with you to determine the best financing options available to you or your business, based on your unique funding requirements.
Your Success is all That Matters
