| If you are a business owner in Southern Ontario | | | | southern Ontario. The economy has traditionally been |
| thinking about selling a business, the issue of | | | | a manufacturing-centred area stretching from Toronto |
| ‘timing’ may interest you. Company owners | | | | (GTA) to Mississauga, Oakville, Burlington, Hamilton, St. |
| often put off a decision to sell a business due to | | | | Catharines through to Niagara Falls. This QEW |
| ‘bad timing’ of one sort or the other (example | | | | corridor is the home to countless factories, machine |
| – the economy has slowed, new staff need to be | | | | shops, steel companies and many other types of |
| trained, just acquired a new complex account, etc.) | | | | manufacturing companies. When the economy |
| The decision to sell a company is an important one | | | | softens this sector is usually impacted much harder. |
| and clearly prudence with respect to timing must be | | | | Jobs are lost, exports decline, and so on. Clearly this |
| taken. However, there is a grey area between | | | | is not an optimal situation. However, as a business |
| thinking that the timing to sell a small business is off | | | | seller you must remember that Ontario’s economy |
| compared to finding reasons not to sell. The | | | | is now a modern, integrated service-based economy |
| purpose of this article is to de-bunk a main reason that | | | | that has evolved greatly from the manufacturing |
| business owners cite as to why they think it’s not a | | | | roots. Economic downturns usually mean an |
| good time to sell and also to explain why now is a | | | | increased level of unemployment as well. Consider |
| good time to sell if you have a strong, profitable | | | | that many workers look to buy a business when they |
| business. | | | | lose their jobs. Buying a business is a clear option for |
| Selling a business does certainly require preparation | | | | many downsized workers so the potential pool of |
| and foresight. The successful business seller will | | | | business buyers can increase in this scenario. |
| have taken several steps to ensure that they are able | | | | |
| to find a buyer interested in their venture and that their | | | | Good businesses are always in demand |
| business presents well. Doing things like claiming all of | | | | The final point to consider is that not all businesses for |
| your earnings, maintaining proper records, increasing | | | | sale are the same. Keep that in mind when you see |
| sales and improving business operations contribute | | | | a long list of online business for sale listings that |
| significantly to selling a business successfully. The | | | | don’t seem to be selling. Business buyers look for |
| trouble, however, is that some business owners | | | | strong, stable and profitable businesses. They look |
| neglect to take the necessary steps to sell their | | | | for a business for sale that has ‘clean’ books, a |
| businesses and then cite the “slow economy”, | | | | history of good operations and one that is truly cared |
| “new staff”, etc. as the reason that they | | | | for and priced fairly. These types of businesses are |
| won’t or can’t sell their business. The reality is | | | | in constant demand. All too often, the business for |
| that it is never a 100% ‘ideal’ time to sell – | | | | sale market is flooded with businesses that have failed |
| there is always something that is not quite perfect prior | | | | (or are failing) and the owners list them at a price that |
| to listing a business for sale (example - revenue might | | | | is far too high and then expect to attract buyers. |
| be off for the latest quarter, the economy may have | | | | The trouble is that not many buyers are in the market |
| softened, a key staff member may have resigned, | | | | for these types of companies (some are, but not |
| and so on.) The point is that selling a business is a | | | | many). The point is that even when the economy is |
| long term decision that requires forethought. | | | | soft or if something is not quite 100% with your |
| Decisions must not be knee-jerk otherwise you, as a | | | | business (and it never is with any venture), a |
| business owner, may never sell your business at all. | | | | fundamentally strong company that is profitable and |
| | | | well run should have a very good prospect of selling in |
| Sell a business in a challenging business environment | | | | any economy. |
| The other issue to consider is that of perspective | | | | |
| when you are selling a business. For instance, | | | | Talk to a business broker |
| some people look at a situation and only see how the | | | | Selling a business is a big decision to make. Talk to a |
| negative might affect them while others see | | | | business broker to discuss some of the many different |
| opportunities. For instance, consider the economy of | | | | options that will work best for you. |