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Buying a Business - Cash  

Selling a Business - What is Your Exit Strategy

Question of the Month:  What You Should Consider When Developing a Marketing Plan? 

Current Businesses for Sale

Upcoming Seminars     

Greeting Card Distribution Route        

The Undersigned Has Acted as an

Advisor to the Vendor

Beal Consultants

Steven Beal, MBA, CGA, CFA, CBV

204-478-7266 ext. 109

www.bealconsultants.ca

As discussed last month financial statements, this month we want to discuss the first item on the balance sheet, that is, cash.

Typically, cash is not transferred during a business sale. In an asset sale, the owner keeps his corporate entity, and all bank accounts, plus cash. Even in a share sale (when the buyer takes over the legal entity), the cash balance is typically stripped down to a nominal amount.

This is done for a number of reasons:  

• The buyer doesn't want to pay extra for cash
• The vendor may be obliged to pay a commission on cash
• There are often tax consequences of when taking cash out of a company, and a buyer doesn't want to inherit that liability

There are, however, situations where cash has to be left in the company:

• Where clients have paid deposits that remain as liabilities of the company
• Where there is a working capital deficit without the cash

Next month we will discuss accounts receivable.

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

A recent CFIB study indicated that 37% of business owners will sell to outsiders, and only 26% said they will sell/transfer to family insiders. Selling to outsiders requires more advanced preparation - some of which starts years before you actually sell.

Previously, we talked briefly about the management and financial aspects. Both take time to put in place, but what can take even longer are certain tax savings strategies. If you sell, you can save significant amount of taxes if you plan ahead at least three fiscal years before you sell. You can take advantage of your lifetime capital gains tax limit under certain conditions. Consult your tax accountant or business consultant for further information.

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

Successful Restaurant Location 

Print and Online Publication - Business Opportunity

Employment Service - Franchise

Small Town Grocery Store/Meat Shop

Seasonal Contractor 

Sandwich Franchise

Frozen Food Distributor 

Hunting Outfitter  

Automotive Repair and Power Product Dealership 

Specialty Building Product Retailer

Online Electronic Store

Fast Food Sandwich Franchise

Diner Style Restaurant  

 
 Construction and Renovation Company  

Trucking Company - NW Ontario  

Plum Creek Gifts - Price Reduced 

Rural Restaurant and Convenience Store  

Winnipeg Convenience Store   

High Volume Retail Chain  

Thompson Hotel and Restaurant    

Prepared Fine Foods - Catering, Wholesale, and Retail 

Addiction Treatment Center

Established Painting Franchise 

   Marine Dealership and Services - Saskatchewan  

 Existing Quick Service Sandwich Franchise 

 Web-Based Specialty Food Seasonal Importer & Retailer - Conditionally Sold  

Manitoba Bottled Water Plant & Retail   

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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  

 "People Grow Through Experience if They Meet Life Honestly and Courageously.  This is How Character is Built."  

  Eleanor Roosevelt        

Question of the Month: I Am Not Very Good at Marketing. Can you Give Me an idea as to What I Should Consider when Developing a Marketing Plan?

 

A typical marketing plan encompasses:

- A Situation Analysis

- Industry and Market Analysis

- Objectives

- Strategy

- Forecasts

Situational Analysis: Often this includes an analysis of your internal strengths, weaknesses, opportunities and threats (SWOT Analysis). It also includes industry and market information and competitor information such as their strengths, weaknesses, pricing and size, and basis of competition. Basis of competition can include a variety of variables such as price, quality, location, and more.  

Industry and Market Analysis:  This section would include any general industry information such as supply analysis, industry trends and developments. In addition it would include an analysis of the demand side, a market analysis. This includes a description of your target market, the estimated market size, the demographics, needs, trends growth rates etc.

Objectives: The objective section includes the goals of your marketing plan.  Establish a quantitative benchmark, establish a measurement method and criteria for success, and specify a time frame. Establish a Budget

Strategy: The strategy section is a clear and concise articulation of how the plan will achieve its objectives. This section includes a company's strategic position (Eg low cost provider vs upscale, high quality), their marketing mix (product, price, place, and promotion), their distribution channels and their chosen marketing tactics.

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.