Selling your business

No. Many owners call us while they are still thinking about timing, value, what a transition would look like and what life after the business might be. You don’t need to have it all worked out.

A first conversation is confidential. We talk about what you have built and what you want, and we give you a realistic view of your options, including whether the business is ready for the market and who the likely buyers would be. Whether you go further is entirely up to you.

It varies with the size and complexity of the business, how prepared it is, the market and the buyer’s financing. Preparation, marketing, negotiation, due diligence and closing together often take many months, and some sales take a year or more.

We will give you a realistic timeline for your situation once we understand the business, and we work to keep the process moving at each stage.

Buyers are first introduced to the opportunity through a short summary that does not name the business. Interested parties are screened for financial capacity and fit, and they sign a non-disclosure agreement before they receive detailed information. Sensitive details, such as customer names, are usually shared later, once a buyer is serious.

No process can rule out every risk, but careful screening and controlled release of information greatly reduce it. We will discuss with you how and when to tell key employees.

The most important thing is to keep running the business well. Buyers and lenders watch current results, customer relationships, employees and day-to-day stability closely.

You will also need to provide accurate information, respond to reasonable due-diligence requests, keep the process confidential and be available for key meetings. We handle the preparation, buyer outreach, screening, negotiations and coordination so that you can stay focused on the company.

It depends mainly on how the transaction is structured. In Canada, an owner selling shares of a qualifying small business corporation may be able to use the Lifetime Capital Gains Exemption, which can shelter a significant amount of capital gains, currently about $1.25 million per individual. Because of this, a share sale is often more tax-efficient for the seller than an asset sale, although buyers frequently prefer to buy assets.

We work with your accountant, tax advisor and lawyer to consider eligibility, how the price is allocated and what you would keep after tax. The rules are detailed and change from time to time, so always get independent tax and legal advice for your own situation.