Finding A Buyer For Your Business

As the Baby Boomer generation begins to decide they would like to spend less time working, many are looking to sell their businesses. There are not as many people interested in buying businesses as there are in selling businesses. Because of the reality of the demographics, businesses owned by Baby Boomers will be sold in a buyers’ market.

The fact it is a buyer’s market does not mean you will be unable to sell your business. There are still buyers out there. Some of them may be working right in your business, as your trusted partners or employees. You need to consider all the possibilities to find the best buyer.

Partners Or Shareholders

If you are not the only shareholder in your business, it is possible one or more of the other shareholders might be interested in purchasing your shares. If this is the case, your shareholder agreement likely covers this situation.

Employees

The advantage of selling to the employees who work in your business is they understand the business. The disadvantage is they do not usually have the money required to buy you out. If you are considering selling to your employees you will most likely end up doing some of the financing as a vendor take-back, due to the lack of funding on the part of the employees. The length of time you want to wait for your money will determine the length of the vendor take-back.

Competitors

Competitors understand the business and may have the money to purchase your business. The process has to be undertaken carefully. You will want a non-disclosure agreement signed before you give any competitor your financial statements. Recognize they will still know your business even though the agreement says they cannot tell anyone.

Customers

Maybe one of your customers is interested in purchasing your business. Let’s imagine you are a drafting business and one of your biggest customers is a firm of architects. They may decide it makes sense for them to buy your business and set up their own drafting department within their business. Take a look at your customer list and see if you can spot any likely candidates.

Giant Corporations

Maybe your business would be a good fit for a large conglomerate which does not yet have a business in their stable which does what you do. These organizations can certainly afford to buy your business, but recognize they will drive a hard bargain. Foreign Nationals

Perhaps your business could be sold to a person who wishes to immigrate to Canada. Individuals in this position may be eligible for a government program which requires them to make some sort of investment in Canada to be permitted to immigrate.

Strangers

If you cannot think of anyone to approach about selling your business, it is possible to advertise your business for sale. It might be time to consider hiring a broker. A broker will assist you with the whole process of selling your business.

Take the time to evaluate all potential sources of buyers for your business. You want to get the best possible price. To do this you need to be sure you have exhausted all the realistic possibilities.

US Business Visa Applications and Your Required Business Plan

Business visa applications will require a business plan involving extensive detailed information including financial projections and expected business growth projections, along with employee position designations and organizational charts.

These plans usually include brief employee job descriptions, salary levels, market analysis and a description of business competition within the area of your business industry, and more.

A good business plan should have a well thought-out, detailed approach with information on the overall vision and aspects of the business. The elements of a good business plan contain the following information:

• An Executive Summary, which should be comprehensive to include the key elements of the entire business plan.

• An Industry Sector Overview, which should include major players in the trends within the industry, and projected industry growth.

• An objective Market Analysis, which should describe products and services, including geographic location, demographics, the targeted market’s needs.

• A Competitive Analysis, which should investigate your businesses direct and indirect competition, and an assessment of advantages over the competition and how the business will overcome any barriers to the chosen market.

• A Marketing Plan, that should detail the sales strategy, pricing plan, proposed advertising and promotion projects, as well as product or service’s benefits.

• A Management Plan, which should outline your business’s legal structure and management team and resources, along with external management resources, human services and benefits plan.

• A Financial Plan, which should describe your business’s funding or fundraising activities, investment capital, resources, a detailed financial statement and analysis and five-year projections.

• Appendices and Exhibits with any additional information that will help establish credibility of the business idea such as marketing studies, photographs of your product, and/or legal agreements pertaining to business, and many other supporting documents.

There are different approaches and formats to a business plan. Each one will depend on the targeted audience. However, in consideration of a business visa petition, the target audience is the U.S. Immigration and Citizenship Services, under the Department of Homeland Security.

Some business entities are more complex than other and you should consult your accountant with what entity form best fits your needs and goals. Once that is determined, our office can help you completing the proper documents to get you started and legally establishing your business.

Another critical aspect to establishing a business is creating and gathering other required documents such as Corporation By-laws, Operation Agreements, Certificates of Formation, Employment Identification Number (EIN), and/or Tax ID numbers, and other business documents.

Your accountant or attorney can help you decide what type of business plan and business structure best fits your needs.