Buying a Business - Business Buyers:  So What Exactly is "Due Diligence" Anyway?   

Selling a Business - Transition/Sell Your Business  

Question of the Month:  I am a Small Business Owner and am Having Trouble Finding the Right Work Life Balance, do you Have any Tips? 

Current Businesses for Sale

Upcoming Seminars     

Anyone who has ever bought or sold a business, or has even thought about it, has heard the term "due diligence." Most people I meet don't know what it is or, if they do, severely underestimate what it means.

It is best to compare it to a more familiar term - when you buy a house, you typically make an offer "subject to" conditions such as financing and a home inspection. Due diligence is the equivalent to the home inspection - is the foundation strong? (legal documentation) - Will the roof need to be replaced in a year? (Financial issues). Does the vendor have clear title (debt checks). A scope checklist is below, but it should not be considered complete - always consult a professional (lawyer, accountant, business consultant) to ensure you have covered all the bases.

• Corporate structure, Articles, by-laws, minute books and capitalization
• Corporate, asset, and debt searches
• Financial statements
• Government obligations (PST, GST, payroll deductions, WCB, other, other, other...)
• Operational issues - documentation of policies & procedures
• Real property review
• Insurance
• Material contracts
• Employment issues
• Litigation (past, present, potential)
• Environmental issues
• Related party transactions
• Intellectual property (patents, trademarks, other)
• Licensing issues (liquor, food, etc)

In the meantime, if you would like more information on buying a business, contact us at 204-478-7266x110.

This month we will focus on a transactional issue - reducing taxes via an estate freeze.  An estate freeze is a useful tool in transitioning a business to the next generation.  It is typically used within a family transition, but the concepts could apply to an arm's length transaction.

An estate freeze is a basic share exchange.  If you own a business worth a million, and you want to transfer it to your children, you can convert your common shares into preferred shares worth one million (less a dollar) and then sell 100% common ownership to your child(ren) for one dollar.  This accomplishes a number of objectives:

• In certain situations (ask your accountant), you can crystallize your gain for income tax purposes. In this situation, depending on the tax cost base of your shares, you could claim up to $750,000 each in capital gains, using your lifetime exemption.
• Ownership of the future growth of the company will pass to the next generation.
• The preferred shares could pay a specific dividend, giving you retirement income.

This is a complex transaction; and there is risk in executing it. Consult a competent tax accountant, lawyer and business consultant before attempting to do it!  Next month:  Why choosing a successor now can help you maximize the value of your business.

If you would like more information on selling or valuing a business, contact us at 204-478-7266 x110.

Home Decor Retailer 

Specialty Building Product Retailer

Online Electronic Store

Fast Food Sandwich Franchise

Breakfast & Lunch Restaurant 

Specialized Local Trucking/Disposal Bin Business - Conditionally Sold 

Construction and Renovation Company  

Trucking Company - NW Ontario  

Greeting Card Distribution Route  

Plum Creek Gifts - Price Reduced 

Rural Restaurant and Convenience Store  

Swimwear Retail Store - Conditionally Sold 

Winnipeg Convenience Store   

High Volume Retail Chain  

Fitness Studio  

Indoor Tanning Studio and Massage Salon  

Small Town Convenience Store 

Thompson Hotel and Restaurant    

Prepared Fine Foods - Catering, Wholesale, and Retail 

Memorial Retailer - Conditionally Sold 

Addiction Treatment Center

Established Painting Franchise 

   Marine Dealership and Services - Saskatchewan  

    Reputable Accounting Practice Outside of Winnipeg -  

Conditionally Sold 

 Existing Quick Service Sandwich Franchise 

 Web-Based Specialty Food Seasonal Importer & Retailer  

Manitoba Bottled Water Plant & Retail   

Rural Gas Station/Convenience Store - Conditionally Sold 

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To review any of these business profiles, please click  here .

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We do not advertise all of our listings to the public.

If you have a specific type of business in mind,

please call 204-478-7266 x110 to inquire!

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 Beal Consultants Website  

 "Excellence is not a skill.  It is an attitude."  

  Ralph Marston    

Question of the Month:  I Am a Small Business Owner and am Having Trouble Finding the Right Work Life Balance, Do you Have any Tips?

 

Work life balance is a challenge for everyone regardless of their profession. For small business owners this challenge is often amplified because their income is often more unreliable and tied entirely to the success of their business. Essentially, as a small business owner if you do not put in the time, you do not get paid, but small business owners often struggle to find balance in their lives. As a small business owner, your company will be on your mind while you eat, sleep and relax. So how do you make running a small business worthwhile when you're working 12 to 14 hour days and how do you avoid burnout?  

Here are six tips for you as a small business owner to keep your work life balance in check:

• Create boundaries - do not answer your phone or email outside your regular office hours. Returning calls or sending emails outside of regular working hours can set a bad precedent. Do your best to separate work time and family time and if possible leave your work at work when you go home for the night.
• Take a vacation - small business owners are often hesitant to take vacation, but even if you believe your indispensable at work, find a way to have someone take over your daily tasks. Getting away, even if it is only for a short duration will rejuvenate you. You'd be surprised how getting away from work can actually improve your performance and productivity when you return to work.
• Have outside activities - your hobby or passion might have turned into your business so it is very important that you continue to pursue other outside activities to help you get away and not think about your business. Having outside activities can also help you refresh and relax which can lead to more creative ideas for your business. Sometimes what you need to do your job better is to get away from your work.
• Love your surroundings - enjoying where you do your work can make a big difference, make sure no matter where your office is that you love your surroundings. Find a space that works for you, and if needed give your space a makeover.
• Have a day of rest - allow yourself one day a week off from work. This includes not checking work emails, or talking about work. Allowing yourself one day off a week from everything work related will reenergize you and help keep your personal relationships intact.  
• Make a schedule - No matter where you work from, whether it is in or out of your home, make a schedule and stick to it. Schedule time to spend with family, friends and attend to personal obligations as well. During your workday take a lunch or a 10 or 15 minute break to yourself to just relax and recharge.

As a small business owner, you probably have a tendency to work all of the time, and it is often easy to get consumed by your business and your work. Work life balance means different things to different people, so make sure you find the work life balance that is right for you.

For more information, contact us at 204-478-7266x110.  

Beal Business Growth Consultants, Inc. helps owners of small and medium-sized businesses to buy, sell, value, and grow their businesses.  We also work with individuals who are looking to buy or start a business or franchise.

Call us at (204) 478-7266 x110 for a free, initial 30-minute consultation to explore how we can help you buy, sell, value or improve your business.  .

Copyright 2013 by Steven Beal, Beal Business Growth Consultants, Inc.  The information herein is not complete and is intended only to provide guidelines to supplement counsel the reader receives from a qualified professional.  It is distributed with the understanding that the author is not rendering legal, accounting or tax advice or opinions on specific facts or matters, and accordingly, assumes no liability in connection with its use.

Published by Beal Business Growth Consultants, Inc.