Alberta Business Wanted
These buyers will pay all me fees.
- Budget up to $600,000
- Have experience in Real Estate, Agriculture, and Restaurants.
- Prefer Edmonton but will consider other locations.
- Most interested in light industrial and restaurant services.
- Can act now.
They will pay all my fees. Sellers will pay their own legal and accounting fees.
These buyers have knowledge and experience in Real Estate, Agriculture, and Restaurants.
Their overarching criteria is continuing cash flow of about $200,000, selling at a price range between $350,000 to $600,000. They will consider smaller options if it is the right fit.
Their cash on hand is about $150,000 with access to the further amounts if needed.
Ideal location would be Edmonton. They will also consider Red Deer and the area to the west of Red Deer. If their ideal fit shows up, they will also consider Calgary or Lethbridge.
They will look at:
- Light industrial such as equipment rentals, niche services to commercial retail such as line painting, property management/ maintenance, or snow removal (with contracts) etc.
- Greenhouse operations with the land base to expand and close to Edmonton, Red Deer, Sylvan Lake, or Lethbridge.
- Restaurant support services such as equipment sales through to grease trap cleaning
- Well established Agricultural Stores
They will not consider liquor stores, weak concept restaurants, convenience stores, gas stations, salons and other general retail operations.
Only once the lawyers have given their blessing will cheques etc change hands and each will be off on a new adventure.
Best Practice for Buyer Brokerage
- The first step will be a call to the broker to get the buyer’s cell number.
- The seller using his own cell or any other number not associated with him to protect his identity will call the buyer to feel him out without revealing information that might identify the business.
- Talks would continue only if this initial conversation ended with mutual interest declared by both sides.
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 are 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.