Business needing back office strengths wanted for purchase

Calgary Business Wanted

An already successful operation needing a business buyer to replace the administrative skills of a departing owner

This business buyer can pay up to $3,000,000 all-in

I have a qualified business buyer looking for a Calgary business.

He will pay all my fees.

Seller will still need independent legal and tax advice.

This buyer’s criteria . . .

  • Must be a currently profitable and well established Calgary business wantedCalgary business.
  • Buyer may also consider a franchise operation that meets the criteria below.
  • Maximum Price $1 – 3 million all in.
  • The Normalized Cash Flow must be at least $300,000
  • Does not require an owner with industry related skills.
  • Is not directly dependent on the energy industry.
  • Departing Owner had responsibility for administration and marketing.
  • Operational expertise and industry knowledge must remain with the firm.

I have been hired by a husband and wife team of professionals. Their expertise is administration and are comfortable with sales and marketing. The husband plans to work full time in the acquired business.

He will only consider established firms with at least three years of profitable financials. He is a numbers buyer and will only pay for performance.

This buyer’s skill set includes marketing and administration. He will only look at business where the operating expertise will continue through the transition of ownership.

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.

 

David Page | An Alberta Business Broker

Top