NorthCo is buying somewhere South

South Alberta or BC Business Wanted

I have a qualified business buyer looking in Calgary or further south. Will also consider BC as far as Cranbrook

He will pay all my fees.

Seller will need independent legal and tax advice

This buyer’s criteria . . .

The short version is that this buyer has lake property in Southern BC and is looking for something in Alberta with continuing operational management and skills that ideally, he can ‘oversee’ from his home on the lake or with minimal on-the-spot visits as needed.

  • Must be a currently profitable and well established business.
  • Buyer may also consider a franchise operation that meets the criteria below.
  • He would prefer little or no direct energy industry exposure.
  • Maximum Price $1 – 2 million all in.
  • The Normalized Cash Flow must be at least $300,000
  • Does not require an owner with industry related skills.
  • Departing Seller had responsibility for administration and marketing.
  • Operational expertise and industry knowledge must remain with the firm.

 NorthCo

I have been approached by a buyer currently operating in the north half of the province wanting a business closer to his planned retirement home.

This buyer already owns a business out of the area and has bank approval to look at new offerings.

He has a background in construction and transportation and has a basic knowledge of in electrical, construction, machinery. He has some interest in all of these.

The buyer is very comfortable in the sales role dealing with either commercial or retail accounts, currently manages professional staff and can talk with technical staff.

His prime areas of interest are construction, manufacturing or transport. Rental stores are of interest.

He would prefer a business with some barriers to entry such as the need for trade tickets, special licensing etc.

He might also consider an existing franchise operation that offered the same barriers to entry.

He wants a business that only requires ownership to be there part time or can be overseen via internet connections etc. with experienced operational management already in place. He may pay for a ‘key man’ already in place and under contract.

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

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