brokerage on webgrowth on web 

The Beal Business Advisor

July 2013

Contact Number:  204-478-7266
In This Issue

Closed Transaction  

Buying a Business - Accounts Receivable  

Selling a Business - What Does an Exit Strategy Involve?

Question of the Month:  We Are Trying to Implement Some Operational Changes in our Business, but Nothing Ever Seems to get Done.  Do You Have any Suggestions on Making this Process More Effective? 

Current Businesses for Sale

Upcoming Seminars     

Closed Transaction

Swimwear Retail Store         

 

 

 

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

 

 

 

Buying a Business  -  Accounts Receivable

Last month we discussed cash, this month we want to discuss accounts receivable.

 

Accounts receivable may or may not be part of a sale, for reasons similar to cash, as discussed last week. Where it is left in, it is typically matched up with the payables (i.e., the buyer takes over the receivables, and pays the payables). Specific things to look for when you examine accounts receivable are:

 

- Review an aging schedule 

- Understand if there is customer concentration

- Review any overdue / disputed accounts

- Understand the amount held as a reserve for bad debts

 

If a buyer buys receivables, it should be clear who is responsible for any amount that is uncollectable by the new buyer.

 

Next month we will discuss inventory.

 

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

 

 

Selling a Business -  What Does an Exit Strategy Involve?
Over the past months, we have talked a lot about succession planning & exit strategies. But exactly what does an exit strategy involve? There are two broad considerations as you plan your exit: some are transactional, and others are business focused.

 

Transaction issues are important. They include such things as valuation, taxes, legal issues, personal retirement funding, transaction details and, finally, financing the transaction. This is what most people think of when they think of exit strategies.

 

We encourage people to think much broader - and understand the full range of succession planning issues, which include focusing on the business side. While the immediate transaction-focused issues are important, the longer-term business issues are where you will really make the difference in the ultimate success of the transaction. Specific business issues include selecting a successor; training that individual, establishing clear roles & responsibilities, training, preparation, monitoring the transition and, most important, some form of dispute resolution mechanism.

 

In the coming months, we will examine both transactional and business issues as they relate to the succession planning process. Next month: Tax issues - estate freezes.


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

 

Current Businesses for Sale

Metal Fabrication Business 

 

Successful Restaurant Location 

 

Print and Online Publication - Business Opportunity

 

Employment Service - Franchise

 

Small Town Grocery Store/Meat Shop

 

Seasonal Contractor 

 

Sandwich Franchise - Conditionally Sold 

 

Frozen Food Distributor 

 

Hunting Outfitter  

 

Automotive Repair and Power Product Dealership 

 

Specialty Building Product Retailer

 

Online Electronic Store - Conditionally Sold 

 

Fast Food Sandwich Franchise

 

Diner Style Restaurant  

 
 Construction and Renovation Company  

 

Trucking Company - NW Ontario  

 

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

 

   Marine Dealership and Services - Saskatchewan  

   

 Existing Quick Service Sandwich Franchise 

 

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

 

Manitoba Bottled Water Plant & Retail   

 

 $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

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

 

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$  

 

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!

 

******************************************************************************* 

 

Upcoming Seminars
 Cash Flow is King - Cash Flow & Financial Ratios

July 17, 2013
10:00 a.m. to 12:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register


Quick Links

Beal Consultants Website  

 

Quote of the Month

 "A Mind That is Stretched by a New Experience Can Never Go Back to its Old Dimensions"  

 

  Oliver Wendell Holmes, Jr.         

Question of the Month: We Are Trying to Implement Some Operational Changes in our Business, But Nothing Ever Seems to get Done.  Do You Have any Suggestions on Making This Process More Effective?

 

Getting people to follow through on business changes can be a daunting task. The best way to engage your employees in a change implementation is to draft an action plan. The action plan includes:

  • Goals and Milestones ("the actions") - This outlines the steps that are needed to take you from today's baseline to your future target. Ensure that there is a measurable outcome for each step so that progress can be tracked.
  • A Due Date - It is important to place a timeline on each action, goal and milestone to evaluate the status.
  • Status Report - The status section reports the progress of each action item, colour coding can be useful as you can see immediately which steps need to be evaluated
  • Accountability - The most important part of an action plan is to assign a person to each action item in the action plan. This ensures that someone is held accountable for the progress of that action. When a person is held accountable for an action item, the chances of it being completed are higher.

Involve your team in drafting the action plan and hold weekly meetings to review the status and any changes. If they are engaged in the process from beginning to end, they will feel more involved and motivated to put your changes into action.

 

Give us a call to help you set up your business and goal structure in a way that helps your employees achieve their goals.

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

 
About Us...

 

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.  .

 

Legal

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.   

 

www.bealconsultants.ca