AdminCo is a Business Buyer
$400,000 up to $1,000.000 or more
This business buyer will pay my fees
Seller and buyer will each pay their own lawyer
and accountant fees.
- Must be a profitable and established business in the greater Calgary area
- Annual Net Cash Flows of at least $200,000
- Preference is for an independent business, but will consider a franchise that meets criteria
- Not in the restaurant or bar business (although wholesale is ok), and not directly reliant on the oil and gas sector
- Preference is for an administrative and marketing role, with limited sales (i.e. company has sales people in place)
- Limited reliance on industry specific skills (i.e. if needed there are skilled employees in place; buyer’s lack of initial experience won’t harm sales or business performance)
- The business is not reliant on a small number of customers accounting for large share of revenue
Desired Business Attributes
Purchase Price: $400,000 to $1,000,000, (and can access additional funds for the right business)
This business buyer is known in the Calgary business community and others have expressed interest in joining him.
Plans are to purchase several firms over in a sequence based on their ability to run themselves without his day-to-day presence as set out below
Pre-planned Exit strategy: 5 years to improve business to satisfactory level and running on it’s own independently (then either sell or leave manager running, with max 10 hours / week of buyer’s input)
Business Type: Independent business that can be expanded (preference is not a franchise, but may consider one that meets criteria)
- Business has good cash flows and has the potential to grow and improve profits through improved management and marketing/sales
- Buyer’s focus would be less operational / putting out fires, and instead a ‘higher level’ focus on business administration, marketing, strategy, etc.
- Desired location is in the greater-Calgary area, but will consider further afield for the ‘right’ business
- Preferably B2B
- B2C depending on customer type and interaction (i.e. not a retail store)
- Relationship- or reputation-based selling, rather than transactional
- Ability to grow customer base and / or revenue per customer
- Not reliant on small number of customers accounting for large share of revenue
- Sales: Between 0 and 30% of seller’s was spent on sales
- Prefer to have a sales force in place if business relies heavily on sales Prefer repeat customers to limit cold calling
- Has existing staff or opportunity to add staff to grow business (preference for team-based environment)
- Technical skills: limited requirements from the buyer (that he can quickly learn) and/or skilled employees (i.e. engineering, construction)
Next Steps for a potential seller . . .
I’m the guy in the middle. At this stage, neither party has to know who the other is. All the buyer needs at this point is a brief description of your business, your product line and your revenues.
If he is still interested, he’ll need to know your normalized cash flow to assess value. Your banker or accountant can do this for you (but may charge you). Or you can send me your latest tax filing or income statement with any identifying information blacked out.
I will come up with your normalized cash flow (maybe needing some clarification as I delve deeper) and my take on the market value of your firm.
You will take this number to your banker or accountant to verify it is within the range of completed deals they see pass over their desks.
If we get everybody on side on value and products, you and the seller can sit down and discuss operations and other matters until one of you walks away or the buyer is ready to propose a deal.