October 2013 - Beal Consultants Advisor

The Beal Business Advisor

October 2013

Contact Number: 204-478-7266

In This Issue

Buying a Business - Machinery and Equipment

Selling a Business - Legal Issues When You are Looking to Sell Your Business

Question of the Month: I Know Traditional Banks are Difficult to Attain Financing with Right Now, Any Other Ideas on Where to get Funding for My Business Idea?

Current Businesses for Sale

Upcoming Seminars

Closed Transaction

Upscale GPS Provider

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 - Machinery and Equipment

Last month we discussed real estate, this month we want to discuss machinery and equipment.

All machinery and equipment required to run the business is included in the sale. Equipment should be in working condition on day of sale, but there is typically no guarantee beyond then. Key issues to understand are:

- Owned vs. leased?

- Condition and age

- Maintenance history?

Next month we will discuss accounts payable and other accrued liabilities.

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

Selling a Business - Legal Issues When You are Looking to Sell Your Business

As mentioned last month, this month we will focus on legal issues when you are looking to sell your business.

Caution: We are not lawyers. We are not dispensing legal advice. What we can tell you is how to use a lawyer effectively when you are looking to sell. Lawyers are like accountants: great at filling in the details when you paint a broad picture of what you want, but not good at painting the picture for you. You need to know some of what you want before you visit a lawyer.

Issues to consider: Are you selling shares or assets? Are you financing the buyer? How much? On what terms? If there is to be a transition period, how long? Are you granting the buyer the "right to offset?" Do you need to keep shares in escrow? If the business fails, can you step back in? Do you want to? If working on a family transition, are you ready to hand over ownership and control? (Using trusts, you can separate the two).

All of these are business and transaction issues that your lawyers and advisors can help you with, but can't make your decision for you.

Next month we will focus on financing your exit strategy. What should you do if the buyer asks you to help him/her buy your business?

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

Current Businesses for Sale

Indoor Tanning Studio

Small Town Dollar Store

Winnipeg Meat Shop - Grocery Store

Weight Loss Clinic

Bridal Shop

Metal Fabrication Business

Successful Restaurant Location

Print and Online Publication - Business Opportunity

Employment Service - Franchise Opportunity

Small Town Grocery Store/Meat Shop

Seasonal Contractor - Price Reduced

Frozen Food Distributor

Automotive Repair and Power Product Dealership

Fast Food Sandwich Franchise

Breakfast & Lunch 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

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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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Upcoming Seminars

Introduction to Income Statements

October 2, 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

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Introduction to Balance Sheets

October 8, 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

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Learn to be Profitable! Pricing & Costing

October 9, 2013
9:00 a.m. to 12:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register

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How to Buy a Business

October 21, 2013
1:00 p.m. to 3:00 p.m.
Canada/Manitoba Business Service Centre
Room 250-240 Graham Avenue
Call 204-984-2272 to Register

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Who is Going to Buy Your Business?

October 23, 2013
6:00 p.m. to _:00 p.m.
ScotiaMcLeod Boardroom

(A variety of refreshments and Santa Lucia Pizza will be served)

Ste. 501 - 200 Portage Avenue
Call 204-946-9232 or
Email betty.mitchell@scotiamcleod.com

Find out how to properly prepare for the succession of your business

Key Topics Discussed:

- Who will buy your business?
- Tips to maximize your after-tax proceeds from the sale of your business
- Fair treatment of family members involved and not involved in the succession of your business

Hosted By: Stan Casar, B.Comm Hons., Wealth Advisor
204-946-9251
stan.casar@scotiamcleod.com

*Registered trademark of The Bank of Nova Scotia,

used by ScotiaMcLeod under license. ScotiaMcLeod is a
division of Scotia Capital Inc. Scotia Capital Inc. is a
Member-Canadian Investor Protection fund.

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Cash Flow is King! Cash Flow & Financial Ratios

November 14, 2013
1:00 p.m. to 3:00 p.m.

Canada/Manitoba Business Service Centre

Room 250-240 Graham Avenue

Call 204-984-2272 to Register

Quick Links

CMBSC Seminar Registration
Chamber of Commerce Website

Beal Consultants Website

Quote of the Month

"If you don't build your dream, someone else will hire you to help them build theirs"

Dhirubhal Ambani

Question of the Month: I Know Traditional Banks are Difficult To Attain Financing with Right Now, Any Other Ideas on Where to get Funding for My Business Idea?

Banks have tightened their lending policies and it is increasingly difficult to get financing for new and existing businesses, however there are some creative sources of funding for entrepreneurs to explore. Some financing options include:

Government Loans - With some research you may find a government loan or even a grant that is available to you. Some examples include The Young Entrepreneurs Program, The Women's Enterprise Centre, and the Aboriginal Business Centre. Search for these here: http://www.canadabusiness.ca/eng/

Calculate Your Net Worth - List your assets and liabilities; often we don't realize our personal wealth. If you have owned your home for a few years you probably have some equity in your home that you can use to raise money. Home equity is one of the quickest and easiest ways to obtain cash. But be aware if your business fails you could lose your home.

Loans from Family and Friends - If you don't have any assets of your own you could always raise money from friends and family. No one wants your business to succeed more than your loved ones, so your nearest and dearest may be a good funding source. In return for the loan, your new family and friends could receive a return on investment higher than money market funds.

Make sure you do it right. Ensure that you have an agreement in writing of how you will repay the loan. Many business owners have lost friends and no longer speak to family because of business deals gone bad and loans not repaid. Anytime you mix business and personal, though, you risk hurting your relationship.

A Partner - If you don't have sufficient capital it may be a good idea to get a business partner. You reduce your risk and you can get partners on board that have complementary skills. The disadvantage of a partner is that you will have different ideas and will have to share profits. Draft an agreement on how to deal with conflict as well as the specific legal agreements outlining your partner's role in the company.

Credit Cards - Personal and business credit cards can seem to be an easy solution to your borrowing needs, but they can be costly. Use credit cards sparingly and not for long-term financing.

Micro Lending Programs - There are creative sources of financing popping up on the internet that sets up potential borrowers and lenders. Borrowers post how much they'd like to borrow and the maximum interest rate they'd pay, and potential lenders bid on loans. (e.g. www.prosper.com)

Venture Capital - If you are planning to raise a really large amount of money maybe Venture Capital is the right route for you. Venture capitalists are usually looking for high growth companies in operation. They will offer financing in exchange for equity in the business and expect a high return on their investment

Angel Investors - Angel investors are becoming a key source of funding for small business. They are usually wealthy individuals that want to invest some money in small businesses with great potential. They can act as great mentors as many of them have owned their own successful business and understand the risks involved. They are often found through networking and/or referrals by bankers, accountants and lawyers etc.

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.