Web Resources

Preparing your business for sale

Fri, 18 Jul 2008 13:12:29 -0400

Selling a business is an important decision with life changing implications which include financial, lifestyle and emotional consequences. The reason for selling a business is usually a combination of many issues such as retirement, new opportunities, lack of time and resources to continue, health r

Pros and Cons / Share Sale or Asset Sale of a Business?

Sat, 23 Feb 2008 14:01:10 -0500

There are two ways of structuring the sale of a business: 1. Share sale; and 2. Asset sale. Share Sale - The Shareholder(s) is the Seller. In a share sale, the Company and its on-going business are valued and the buyer purchases all by purchasing the Shares of Capital Stock of the Corporation

Rules of Thumb for Restaurant Valuations

Sun, 7 Oct 2007 18:44:09 -0400

Restaurants generally sell for approximately 2-3 times the SDE for the preceding 12 months plus inventory. Other rules of thumb . . . 3 - 4 times EBITDA 30 to 35 percent gross sales plus inventory. Food costs should not exceed 33% and payroll costs should not exceed 30% with ideal combined costs b

How do you value my business?

Sat, 29 Sep 2007 11:29:58 -0400

There is no simple method, but to approximate the value of your business, you should consider both its assets and earning power. Generally, the earning power of a business is defined as the annual pretax earnings plus owner's salary and perks added back, which determines the real earning power or

Retirement looming for entrepreneurs

Tue, 2 Oct 2007 17:51:50 -0400

“Canadians are aging, and Canadian entrepreneurs are aging even faster. According to a recent CIBC report, the number of self-employed who are nearing retirement (ages 55 to 64) has been rising rapidly in recent years, growing by a whopping 7.5% annually since the beginning of the decade. This is do