Do you have a thriving business in the heart of BC? There has never been a better time to be selling. Want to offload a company? Or do you simply need a cash injection. Firmer ties with Asia are creating business opportunities in BC. It’s no secret that many business people throughout East and South East Asia are interested in Canada. They see the potential of buying a company in Canada, getting a Canadian passport and shifting some of their assets here. The process has been simplified for them by Federal and provincial legislation.
Business Opportunities in BC
The Lower Mainland had been the primary target for wealthy foreign investors. However, now they require fresh pickings and the BC interior looks inviting. Readying your business for sale can be difficult. Foreign buyers are constrained by Canadian law to buy profitable and stable companies. Businesses must be at least five years old and in good financial shape.
Mergers & Acquisitions
If you’re interested in capitalizing on the latest business opportunities in B.C., a firm of Mergers & Acquisitions Experts can assist you with the process. They can assess your business, ensure that it’s impartially valued and prepare the necessary paperwork. They can work on your balance sheet and generally see that you put your best foot forward. As a Mergers & Acquisitions specialist they can put you in contact with reputable buyers and help you negotiate a fair deal.
You’ve found a business for sale in Vancouver? Now, what are the legal steps to take into consideration? To start with, you should do extensive research into the company. You should request the disclosure of important documents such as financial statements, customer and supplier lists, salary sheets, equipment and asset breakdowns, as well as information relating to debts, liabilities, licenses, contracts and leases. All information should be scrutinized and verified before proceeding with a purchase.
Business for Sale
It is important you define early on, the nature of the purchase and whether it refers to assets, shares or some combination of the two. There is a significant difference between purchasing shares from the owners of the business and purchasing the assets straight out.
Defining the Buyer
Who is the buyer? You as an individual? Or a company which you operate? It is more common and generally more practical to make the purchase through your own company. By doing this you can avail of certain tax benefits and avoid risk to your personal assets.
Negotiating the Terms.
You’ve found a business for sale and you’ve decided to buy. You’ve done all the research. Now it’s a matter of coming to terms. These terms will dictate the structure of the purchase, personal indemnity and schedule of sale. It will also include the working out of certain risk factors and occasionally the signing of a “Non-Competition Agreement” to ensure the seller doesn’t go on to found a competing business.